SAP Shares Fall, Salesforce Soars on Report

Wedbush analyst Michael Nemeroff offered up conflicting views Tuesday on Salesforce and SAP -- a pair of enterprise software rivals that appear to be headed in opposite directions going into the new decade.

Nemeroff raised Salesforce (NYSE: CRM) from a "neutral" rating to "outperform," saying that the on-demand software vendor has a "strong and stable base of recurring revenue" and "low and very achievable expectations for growing in fiscal 2011."

Earlier this month, Salesforce topped analysts estimates in its latest quarter as year-over-year sales surged more than 20 percent.

Salesforce shares subsequently stormed up to a 52-week high of $67.72 a share earlier this month. In Tuesday afternoon trading, the stock was up $0.39 a share, or 1 percent, to $64.89.

With the Nemeroff upgrade, 19 of the 33 analysts covering Salesforce maintain either a "buy" or "strong buy" recommendation.

Meanwhile, he downgraded SAP from a "neutral" rating to "underperform" and set a 12-month price target of $49 a share.

Nemeroff justified the move by citing the German software giant's "comparatively weak core business fundamentals" which he said will continue for at least the next few quarters.

He also said that incremental growth from the likes of Salesforce and other on-demand enterprise resource planning (ERP) vendors would "chip away at the company's market share and renewal rate" among smaller customers.

SAP, which earlier this week announced that it and Microsoft would team up to selling budgeting, planning and forecasting applications to their shared customers, has seen its stock make steady advances for most of the past year.

SAP shares trimmed $0.38 a share, or 1 percent, to $48.01 in Tuesday trading, down from its peak of $52.73 established last month.

Now 12 of the 16 analysts following SAP maintain either a "hold" or "underperform" rating on the stock.

TAGS: Microsoft, Oracle, SAP, SaaS, Salesforce

Microsoft Plays Hardball With Windows 7 Versions

When Windows Vista proved too big to fit early netbooks, Microsoft resurrected XP at a lower price to satisfy that market. Microsoft would only sell XP to an OEM if the system was sufficiently underpowered that it couldn't run Vista. Microsoft has already said that all versions of the slimmer Windows 7 should run on netbooks, so what will happen with Windows 7?

Microsoft has been mum on details, but there have been some worrisome rumors that the company might come out with a "Windows 7 Starter for Small Notebook PC" and limit its use to netbooks. (Given that they did it with XP, it's not a stretch to think they'll try it with Windows 7.) Let's go back to the charges leveled against Microsoft by the Department of Justice in the 1990s. In that document, you'll see this claim:

66. Furthermore, Microsoft expends a significant portion of its monopoly power, which could otherwise be spent maximizing price, on imposing burdensome restrictions on its customers [OEMs] — and in inducing them to behave in ways — that augment and prolong that monopoly power.

One of the outcomes of Microsoft's consent decree was that OEM pricing was based on volume; OEMs that have the same sales volumes pay the same price. It was intended to prevent Microsoft from playing favorites -- rewarding or punishing OEMs for other related actions that pleased Microsoft. In this case, Microsoft would be pleased if competing operating systems didn't take over on netbooks. Before Microsoft brought back XP, Linux had a huge market share on netbooks. If Windows 7 is to maintain a hold on the netbook market, Microsoft has to offer OEMs a price that won't kill their budgets.

Microsoft has every right to do crazy things with feature sets in order to segment the market and produce a Windows 7 version they can sell at a low cost. The three-running-application limit in Windows 7 Starter is one such crazy thing. Microsoft crosses the line by attempting to contractually limit OEMs on the hardware that Starter can use. That shouldn't be Microsoft's decision. If Starter is good enough for netbooks then it should be available to OEMs for whatever hardware that can run Windows 7. If Microsoft fears Starter will hurt the reputation of Windows 7, they shouldn't offer it.

Naturally it would be good for Microsoft if they could charge different prices depending on the final cost of the product. That would be too obviously predatory, though, so a hardware-limited Starter is a "subtle" solution they hope will pass anti-monopolistic muster. The use of netbook hardware requirements to set prices and limit the use of Starter sure looks like it's just a diversion for the real issue, which is the threat of other operating systems gaining a foothold on netbooks. Besides all the Linux competitors, arch-enemy Google may be getting Dell to deliver an Android-based netbook, which must have Microsoft concerned.

Microsoft wants to maintain its market-share lead on netbooks without sacrificing profit margins on full-sized PCs. But OEMs should be able to buy any Windows 7 OS for the same volume-defined price and use it on any hardware with no restrictions. Allowing Microsoft to adjust pricing and limit distribution based on target hardware is a page from their old mid-1990s monopoly playbook, this time intended to muscle out OS competitors. If Microsoft does try such a ploy, it should be stopped.

A New Online Company Help Entrepreneurs Start and Grow a Small Business From Home - The Current Economy Opens its Online Doors

Today companies are facing consumer belt tightening and dwindling advertising budgets. This means they need to get more out of every marketing dollar by ensuring that every promotion they run hits the target. This is when online entrepreneurs are needed to help companies through an affiliate partnership get their products out there.

Stamford, CT (PRWEB) May 7, 2009 -- Herbules Products announces the launch of a new business to the masses that brings financial freedom to those who are willing to learn. Home based Cash Biz is a new and exciting online business that gets started with an amazing training program. HBCB is a valuable lifelong resource to help achieve freedom, peace of mind and prosperity, states President & CEO Herb Boyd Jr. Inventor of the Hat Stand Mr. Boyd is also recognized for his work in being the Founder and CEO of GETV (Gospel Entertainment Television.) GETV is an online and television Christian network focused on providing top quality Gospel programming and other services. GETV also has a Christian video sharing site that broadcasts pastors as well as gospel artists and musicians to the world.

Read More

World gets to put Windows 7 software to the test .

SAN FRANCISCO (AFP) -A nearly-final version of Windows 7 made its world debut on Tuesday, giving people a chance to tell Microsoft what they love or hate about the new-generation operating system.

Microsoft is making a Windows 7 Release Candidate (RC) available as the global software giant puts finishing touches on an operating system that it hopes will escape criticism heaped on its predecessor Vista.

"It appears that they are on target," said analyst Michael Cherry of private firm Directions on Microsoft, which specializes in tracking the US software giant.

"I think we need to be cautious though. Windows 7 is still in development. While Microsoft is certainly moving on to the next logical milestone, this is still a test version of the operating system."

Read the rest.

Outlook for Small Cap Software Stocks Discussed in Wall Street Transcript Corporate Software Report

67 WALL STREET, New York--May 5, 2009 The Wall Street Transcript has just published its Corporate Software issue, a report offering a timely review of the sector to serious investors and industry executives. This 41-page feature contains industry commentary through in-depth interviews with 6 analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics include: Adoption of data services, Emerging markets, Reallocation of resources, Location services, Advertising, Social networking, R&D spending, More pricing pressure, Penetration rates, The business model, International exposure, M&A activities, IT budgets, Stock picks, Stocks to avoid.

Contents: Outlook for Telecom Software: Scott P. Sutherland, Wedbush Morgan Securities; Business & Professional Services: Kevin D. McVeigh, Credit Suisse First Boston Corp.; Outlook for Infrastructure Software: Richard Sherman, MKM Partners LLC; Infrastructure Software: Walter Pritchard, Cowen & Co., LLC; IT Outsourcing & Consulting Companies: Karl Keirstead, Kaufman Bros., LP; Small & Mid-Cap Software Stocks: Mark W. Schappel, The Benchmark Company, LLC. Companies mentioned include: Smith Micro (SMSI); Syniverse (SVR); TeleCommunication Systems (TSYS); NeuStar (NSR); VeriSign (VRSN); Vodafone (VOD); AT&T (T); Nokia (NOK); Google (GOOG); Microsoft (MSFT); Iron Mountain (IRM); Convergys (CVG); TeleTech Holdings (TTEC); Sykes (SYKE); F5 Networks (FFIV); Blue Coat Systems (BCSI); CA (CA); Data Domain (DDUP); Adobe Systems (ADBE); VMware (VMW); Citrix (CTXS); McAfee (MFE); Check Point (CHKP); Accenture (ACN); AsiaInfo (ASIA); salesforce.com (CRM); Oracle (ORCL); Infosys (INFY); Amdocs (DOX); ANSYS (ANSS); Wind River (WIND); GSE Systems (GVP); Aspen Technology (AZPN); Open Text (OTEX); Guidance Software (GUID).

In the following brief excerpt from the 41-page report, Mark W. Schappel, The Benchmark Company, LLC discusses the outlook for the sector and for investors.

TWST: Mark, where are you focusing your attention in the software area?

Mr. Schappel: I typically focus on small and mid-cap software stocks. There are a few themes that I'm looking at during the current downturn that impact the entire software sector, especially the small/mid-cap names I follow. First, I look for software vendors that sell small to mid-sized deals. These deals are typically characterized by a measurable ROI story over a fixed time period. Mid-sized deals often carry lower risk than larger deals. I look for vendors that are well diversified by industries and geographies covered.

I also look for companies that are less reliant on corporate IT spending and corporate IT budgets. It's no secret that customers are reluctant to spend and IT budgets have been pulled back. So I look for software vendors that are not tied to IT budgets or customer unit shipments. For example, some software companies are funded through customer R&D budgets, like Ansys (ANSS). Another is Wind River (WIND), a company followed by my partner Brent Williams. Also, to a lesser extent, there's MSC.Software (MSCS). All of these vendors' products are largely funded from customer R&D budgets, not IT budgets. R&D budgets are holding up a little bit better during the downturn than IT budgets, and this bodes well for those software vendors.

Another theme that I think is appropriate during the economic downturn is software vendors exposed to strong secular stories not tied to IT. For example, GSE Systems (GVP), a micro-cap or small cap company, is exposed to the coming buildout in the nuclear power industry, so IT budgets can fall for many years and that won't impact GSE Systems. They're exposed to the number of nuclear power plants built worldwide during the next 20 years. Another company in that category is Aspen Technology (AZPN). Aspen is tied more or less to capital spending in the process industries, such as oil and gas, refining, chemicals, petrochemicals and pharmaceuticals.

Another secular theme is regulatory compliance. Regulatory compliance spending is less exposed to the macro downturn, although it's not completely immune. Software companies exposed to this area include e-mail archiving vendor Open Text (OTEX) or e-discovery vendors such as Guidance Software (GUID) and to a lesser extent, EPIQ Systems (EPIQ). E-discovery software is used in corporate litigation when a lawsuit is filed against your company. During the discovery process, electronic information is subject to the discovery process as well as documents sitting in your filing cabinets. Companies like Guidance Software have technologies that help gather the relevant electronic information and put it into a case file.

TWST: I guess that's becoming more prevalent in this kind of environment.

Mr. Schappel: It is becoming very prevalent, which bodes well for Guidance and EPIQ Systems. Another company in that space is UK-based Autonomy (AUTNF). They trade on the London Stock Exchange. E-discovery and e-mail archiving fall under the broader umbrella of regulatory and compliance software.

As much as I look for positive software developments, there are also areas that I'm staying away from. One of those areas is application software that vendors such as SAP (SAP) and Oracle (ORCL) provide. This includes everything from the backoffice ERP applications, like finance, accounting and inventory systems, to supply chain management and human resource applications.

TWST: And you're suggesting to stay away from them at this point.

Mr. Schappel: I'm cautious on the application space because applications typically require a large upfront purchase. Million dollar plus deals are common, if not the norm, especially with larger companies. These large capital purchases are being heavily scrutinized during the downturn. Secondly, you need an army of consultants to help install the software and you also have to take people out of your business, which can be disruptive to an organization. In addition to these costs that are easy targets for executives to cut in a downturn, the payback is not always evident in the short term. It is sometimes six to 12 months after an Enterprise Research Planning (or ERP) deployment to say, "Okay, this is what our savings were and this is what the payback on our investment was." For many companies, the payback is several years out. So I'm avoiding companies tied to big application projects.

I think IT budgets are locked down for these big heavy projects, at least for the remainder of the year. I think customers are unlikely to embark on any new application initiatives until 2010 at the earliest when the next budgeting cycle begins. I think customer IT organizations are more willing to initiate bite-size projects in this environment, such as Internet infrastructure projects or e-commerce systems. These systems are less expensive, less disruptive, and you can often measure their benefits much easier. That's much different from large application projects that are known for their high total installed costs. Additionally, I think the application vendors are also exposed to some emerging and disruptive technologies, particularly on-demand or Software as a Service applications. I think SaaS applications are chipping away at the margin of the conventional application vendors like SAP, Oracle and Lawson (LWSN).

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 41-page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

Sun deal poses challenges for Oracle

Oracle Corp., which announced plans last month to acquire Sun Microsystems for $7.4 billion, should benefit from the merger but will face significant marketing challenges in communicating the combined brand, industry analysts say.
In announcing the deal April 20, Oracle CEO Larry Ellison emphasized the strength of the end-to-end solution that Oracle will now be able to offer its customers as a result of the acquisition.
“Oracle will be the only company that can engineer an integrated system—applications to disk—where all the pieces fit and work together so customers do not have to do it themselves,” he said. “Our customers benefit as their systems integration costs go down while system performance, reliability and security go up.”
Under the terms of the deal, software company Oracle is acquiring the entire Sun portfolio, which includes hardware, software and services.
Most notably in the software category, Oracle will pick up Sun's Java open source software development platform, its Solaris operating system and MySQL, its open source database software. It will also own Sun's hardware business, which comprises servers, storage devices, desktop workstations and peripherals.
“The first big thing is the cachet, or lack of cachet, that Oracle has had in open source,” said Ray Wong, VP-principal analyst at Forrester Research. “They now have the crown jewels of open source with Java and MySQL.”
Another big advantage of the merger, Wong said, is the end-to-end solution Oracle will be able to deliver. “It used to be just application and database software,” he said. “Now they are trying to make the case that they can deliver hardware, software, middleware and database software all in one-stop shopping, which will help their customers reduce costs.”
Wong added: “The challenge is to figure out the perception of Oracle being in the hardware business. What does it mean, and can they successfully convince people to buy the whole stack from them?”
He noted that Oracle has already been successful in managing and marketing other acquisitions. For example, in 2005 it acquired CRM software company Siebel Systems, and last year it bought enterprise software company BEA Systems.
Jean Bozman, VP-research for IDC's enterprise platforms group, said one of the greatest assets Oracle will get is Sun's installed base of customers and the service contracts and upsell opportunities that go along with that.
“They have at least 1.6 million servers [installed worldwide] and also storage and service contracts,” she said, noting that about 40% of Sun's revenue now comes from services. “From a holistic view, they have a large installed base, the opportunity for new offerings and things like upselling.”
For example, Bozman said that although MySQL is a database product, it does not necessarily compete with Oracle database products. “Oracle has always been about cross platforms and running on as many platforms as possible,” she said. “It may be that the MySQL offering, which is widely used, could bring additional business for other Oracle products.”
Bozman said one of the biggest challenges for Oracle will be integrating Sun into its operations and ensuring that it runs a profitable business.
Bozman also noted that because of the downturn, spending on big IT projects is being cut or deferred but, as conditions improve, IT investment should pick up. That will benefit Oracle in the long run.
Other industry experts, however, were not as bullish on the deal.
Jim Gregory, CEO of brand strategy firm CoreBrand, noted that Sun had a brand score of only 16 on a scale from 1 to 100 in CoreBrand's 2008 Brand Power report, while Oracle had a brand score of 30. “In terms of what they are buying, it is not a heavyweight brand,” Gregory said.
“It seems like it made a lot more sense for IBM [Corp.] to make the acquisition. That seemed like a much better fit,” he said, noting that IBM had a brand score of 76.
In April, IBM made a bid to buy Sun for an estimated $7 billion but was outbid by Oracle, according to people familiar with the talks.
Gregory said one of the immediate challenges for Oracle is to communicate its strategy for the acquisition and what it means to its customers.
“What they will need to do is tell a story very quickly,” he said. “Otherwise, Oracle's image might be hurt. They have to communicate clearly why they made this acquisition, why it fits as a company and what they intend to do with it. They have a short window of opportunity.”

Ubicom® Provides Flexible, High-Performance Processor Platform with Release of Linux BSP

Linux BSP and Open Source reference designs for networking and multimedia enable rapid development of embedded products

SAN JOSE, Calif., March 30 /-- EMBEDDED SYSTEMS CONFERENCE -- Ubicom(R), Inc., a leading provider of networking and multimedia processors, today announced the release of a Linux Board Support Package (BSP) with a complete implementation of the Linux 2.6.28 SMP kernel, device drivers, GNU tool suite and documentation for rapid development of networking and multimedia products. The BSP includes reference applications for router gateways and networked media players using turnkey open source packages. Additionally, Ubicom provides reference hardware, design files and fabrication data for Router Gateway and Media designs, as well as a CPU development board and personality boards for other applications. All the released hardware and software solutions support the company's latest IP7000(TM) family of processors.

The Ubicom IP7000 family of networking and multimedia processors featuring the UBICOM32(TM) 12-way multithreaded architecture can be clocked at frequencies up to 600MHz, which can deliver two to three times the performance at the same frequency compared with a traditional single-threaded RISC processor. Designers can also use a wider range of interface options via Ubicom's unique software I/O technology. The integrated SIMD video coprocessor and DSP instruction set makes audio and video applications deterministic and less processor-intensive.

The Ubicom Linux BSP allows developers to rapidly deploy existing applications while taking advantage of Ubicom's multithreaded system. Ubicom has enhanced the classic Linux development cycle by providing state of the art tools including: an advanced Ethernet based version of GDB enabling full kernel and driver debugging; Ethernet based user level debugging; a configuration tool enabling developers to quickly configure the Software I/O features of the processor; and an in depth Ethernet based profiler tool. The advanced profiler tool leverages Ubicom's unique multi-threaded architecture to run real time statistical profiling without affecting system performance and collect rich profile data such as CPU and memory utilization per function.

"The demand for flexible high-performance embedded processing continues to grow as networking and media devices evolve," said RK Parthasarathy, vice president of marketing at Ubicom. "The Ubicom Linux BSP for the IP7000 family of processors addresses the needs of embedded developers to efficiently bring solutions to market."

Availability

The Ubicom Linux BSP is available now. For more information, visit the Ubicom support portal at developer.ubicom.com.

The IP7000 family of processors is in volume production. For more information, visit www.ubicom.com/ip7000.

About Ubicom, Inc.

Ubicom develops networking and media processor solutions that address the unique demands of real-time interactive applications and multimedia content delivery in the digital home. The company provides optimized system-level solutions for a wide range of products including wireless routers, access points, bridges, VoIP gateways, networked digital photo frames, and streaming media players. For more information, visit www.ubicom.com.

Ubicom, IP7000 and UBICOM32 are trademarks of Ubicom, Inc. All other trademarks are the property of their respective holders.

CONTACT: Michelle Amaya of Ubicom, Inc., +1-408-789-2100, mamaya@ubicom.com

Web Site: http://www.ubicom.com/

Twitter. what Wikipedia say

Twitter is a free social networking and micro-blogging service that enables its users to send and read other users' updates known as tweets. Tweets are text-based posts of up to 140 characters in length which are displayed on the user's profile page and delivered to other users who have subscribed to them (known as followers). Senders can restrict delivery to those in their circle of friends or, by default, allow anybody to access them. Users can send and receive tweets via the Twitter website, Short Message Service (SMS) or applications such as Tweetie, Twitterrific, Twitterfon, TweetDeck and feedalizr. The service is free to use over the Internet, but using SMS may incur phone service provider fees.

Since its creation in 2006, Twitter has gained extensive notability and popularity worldwide. It is often described as the "SMS of Internet", in that the site provides the functionality (via its application programming interfaces) for other desktop and web-based applications to send and receive short text messages, often obscuring the Twitter service itself.

Four gateway numbers are currently available for SMS — short codes for the United States, Canada, India, and a United Kingdom-based number for international use. There is also a short code for Vodafone users from the UK. Several third parties offer posting and receiving updates via e-mail.

Estimates of the number of daily users vary as the company does not release the number of active accounts. In November 2008, Jeremiah Owyang of Forrester Research estimated that Twitter had 4-5 million users.^[2] A February 2009 Compete.com blog entry ranks Twitter as the third most used social network (Facebook being the largest, followed by MySpace),^[3] which puts the number of unique monthly visitors at roughly 6 million and the number of monthly visits at 55 million.^[3] In March 2009, a Nielsen.com blog ranked Twitter as the fastest growing site in the Member Communities category for February 2009. Twitter had a growth of 1382%, Zimbio had a growth of 240%, followed by Facebook with a growth of 228%

Microsoft: employee stole documents for patent lawsuit

Microsoft is accusing ex-employee Miki Mullor of using his inside access to download internal documents for a patent complaint that his startup company, Ancora Technologies, has since filed against Dell, HP, and Toshiba. The suit alleges that the companies are infringing on Ancora's patent by selling computers with Windows Vista preactivated, which is possible thanks to one of Microsoft's anti-piracy technologies, System Locked Preinstallation (SLP). When Seattle Tech Report covered this story, the publication noted that Ancora's website described the case as follows:

To secure each copy of (Windows), without burdening the honest user, (PC makers) use a technology known as System Locked Pre-Installation (SLP) to protect Windows against piracy. SLP is Ancora's technology and is covered by our pioneer patent, US Patent 6,411,941. This lawsuit is about protecting our patent rights from being infringed by HP, Dell and Toshiba. This is not David vs. Goliath. This is David vs. three Goliaths.

On January 22, Microsoft filed its own lawsuit in King County Superior Court in Seattle, which claims Mullor wrote in his October 2005 Microsoft employment application that he no longer worked for Ancora because it was out of business. Nor did he disclose when hired that he believed SLP infringed on an Ancora patent. Microsoft, which is intervening in Ancora's patent lawsuit to defend its technology (and the PC makers) against the patent-infringement claims, now becomes Goliath number four.

Mullor, on the other hand, said he informed Microsoft about his patent in his résumé and employment agreement, though he notes that Ancora had ceased business operation before he applied to Microsoft. The documents Mullor downloaded from Microsoft before Ancora filed the lawsuit included information on the SLP and the upcoming Windows 7 operating system, according to Microsoft's complaint. They were downloaded onto Mullor's company-issued laptop, after which Mullor allegedly deleted them, then tried to hide his tracks by using software that overwrites deleted files.

Mullor was still a Microsoft employee when Ancora filed the suit against the PC makers; he was hired as a program manager in the Windows Security Group in November 2005. But in June 2008, four days after allegedly trying to hide his downloading activities, Ancora filed its patent lawsuit. In September 2008, Microsoft intervened as a party-defendant in the case and fired Mullor.

The Ancora patent is dated June 25, 2002, and Mullor claims he approached Microsoft in 2003 to discuss the "benefits Microsoft could realize by using it," but Microsoft wasn't interested. He believes Microsoft developed technology that is the subject of the patent lawsuit after his offer. Mark Cantor, an attorney representing Ancora in the patent litigation, said Mullor denies any wrongdoing, and described the Microsoft complaint as "simply a retaliatory lawsuit by Microsoft to get the patent case transferred to Seattle."

The patent case is scheduled for trial in a Los Angeles federal court on January 26, 2010, but Microsoft is seeking a court order barring Mullor from any involvement in the patent claim, which would bar him from assisting Ancora with prosecuting the suit with or without the documents he downloaded from the software giant. Mullor has given a statement on the situation, which you can read most of at the Seattle Tech Report.

Messenger Plus! Live 4.80 out, supports latest Messenger

Messenger Plus! Live fans don't have to wait any longer: the newly released 4.80.356 fully supports the latest version of Messenger that was released as part of Windows Live Wave 3, 14.0.8050.1202. You can download the freeware application (sponsor program is optional) from the homepage. According to the software's author, Patchou, the software may visually look the same, but there are many improvements nonetheless:

Despite the lack of visual changes in the software, the change log shows that many things were done under the hood. As often, scripts and skins in particular got their good share of improvements. There are now more than 500 of them in the official databases of this site. This means that you could spend the next month customizing Messenger with Plus!, its scripts and its skins and you would still haven't seen everything.

You can find a more detailed list of changes on the changelog page. The latest version comes with the following languages: English, Spanish, French, Arabic, Chinese Simplified, Chinese Traditional, Danish, Dutch, Estonian, Finnish, German, Greek, Hebrew, Hungarian, Italian, Japanese, Korean, Norwegian, Portuguese, Swedish, Thai, and Turkish. It can be installed on 32-bit and 64-bit versions of Windows XP or Windows Vista. Although not officially supported, I tested this build with the Windows 7 beta and it works just fine.

More proof that Microsoft wants Windows 7 out in 2009

On the Engineering Windows 7 blog this week, Microsoft again noted that it was planning to give the public a Release Candidate of Windows 7 before the final version is ready. In other words, there is not going to be a "Beta 2," and the public would only see one public beta build: Windows 7 build 7000. However, a timeline for these versions is not disclosed: "This post is in no way an announcement of a ship date, change in plans, or change in our previously described process, but rather it provides additional detail and a forward looking view of the path to RTM and General Availability."

The fact that Microsoft is not planning a second beta, that the first beta is the most stable Microsoft has ever given out, and that getting Windows 7 ready in time for the holidays is advantageous has all led to speculation that Microsoft wants Vista's successor out this year. Officially, Microsoft has always said "three years after the general availability of Windows Vista," which was released on January 30, 2007, and that the release date was also dependent on quality. As with any product in beta, enthusiasts have been making predictions all over the place, most in the timeframe of late 2009 to early 2010. Microsoft employees have been making their own predictions, but the average of their guesses is much earlier in 2009: October 3.

I asked Michael Bohlin, product, here are some dates more or less nailed.


February 26, TechNet and TrueSec med with Microsoft Windows 7 Summit. Microsoft Windows 7 Summit.


17-18 March, Tech Days in Västerås, our largest Windows 7 event in the spring.


May 31 Microsoft itself installed.


Early in April, after CeBIT, the RC.


June, July, August, Summer Koll with many presentations.


RTM and launch company as it stands right now Q3 2009. The cut of all internal guesses here at the office right now is October 3 at 11.10.


February 2010 the board of trade.

The above quote is a translated version (à la Google) of a Microsoft Sweden partner blog post that Neowin found. It should also be noted that the timeline points to an RC being released in April. Dates like those above are always subject to change, but it's quite obvious that Microsoft is at least currently aiming to get Windows 7 ready for prime time by Q3 2009. We'll just have to wait and see if they can pull it off.

Heartland attacked

Heartland Payment Systems, one of the biggest card payment processors in
the US, has been the victim of what could well be the biggest security
breach of its kind. Malicious software installed onto the Heartland network could have compromised as many as 100 million transactions
according to numerous emerging reports. This would dwarf the TJ Maxx breach which involved details of some 40 million credit card transactions being stolen.



Apparently the hack attack at Heartland was discovered in-house last
week and law enforcement agencies notified along with the credit card
companies whose customers could become potential victims of the fraud.
Data including names and card numbers was compromised, exactly the kind
of information needed to clone cards.



Some security experts have accused Heartland of attempting to bury the
news of the breach by releasing the news just as US Presidential
inauguration hysteria swept the world. Others have expressed doubts as
to whether what actually happened here, as regards the detail of how
the malware was installed onto what was meant to be a highly secure
system, will ever be exposed for public consumption. "It will be
interesting to see how this incident pans out. Our best guess is that
the software was either installed by a sleeper, a rogue employee
working inside the firm who passed the usual vetting procedures, or a
direct systems attack followed by the insertion of a custom application
on the processor's IT resources," said Rob Rachwald, a director at
security specialists Fortify Software. "The $64,000 question, of
course, is whether Heartland and the US Secret Service, who are working
with company staff on an investigation, will reveal the actual modus
operandi of the fraudsters. I somehow think this will not happen,"
Rachwald concludes.



Meanwhile, Bradley Anstis, Director of Technology Strategy at another
security company, Marshal8e6, told us "Even though Heartland was PCI
DSS compliant, determined criminals were still able to steal millions
of credit card details. We are seeing more and more instances of IT
staff relying on their AV and not being aware that their computers have
been compromised with spyware or other malware. Today's widely accepted
methods of signature-based malware detection are simply not going to
catch targeted spyware because the AV companies won't be familiar with
its signature. Companies should also look to emerging technology like
behaviour-based malware analysis which would have caught this malware."



One thing is for sure, this is a bad start to 2009 and could be indicative of the malware year to come.

MS Makes $22B, Lays Off 5,000

Poor Microsoft. Making $22 Billion in profit for
2008 must be such a disappointment to a company in the 2009 economy.
Hey, here’s an idea: let’s lay off 5,000 employees, stockholders will feel like they are getting their money’s worth and perceived earnings per employee will increase. Nonsense.

Microsoft is the latest American company now managing to stock
price. The higher the stock price, the better the company must be
doing, right? Well, no. That’s called bad, short-sighted management and
lack of leadership without a clear long-term vision. That’s why the
stock market is in trouble and has been for years. Executives in
publicly owned companies are rewarded for raising their company’s stock
price – that’s called increasing “Shareholder Value.”

CEO Steve Ballmer has said “Windows is the air we breathe”
– hate to tell you Steve, but we can also breathe Linux, Apple and
perhaps even a Google OS in the future. The uniqueness of Windows is
beginning to fade and it’s your job to figure out how your company will
move forward and create real, new value.
 

More than 80% of Microsoft’s profit comes from operating
systems like Vista, the various server versions and XP. The rest of its
income comes from all their other products and activities combined.
Microsoft blames this “loss” on weak PC sales. Pity. Maybe the
government will offer them a bailout. 

Comodo Security Freeware Wins Techsupportalert.com's Award

Comodo Security Solutions announces that Comodo Internet Security has won the 2009 Techsupportalert.com "Editor's Choice" award for Free Vista 64-bit Software.

Comodo Internet Security protects computers online. Its first line of defense is a firewall with Host Intrusion Prevention System, combined with a constantly-updated antivirus database. Comodo offers this protection to all Internet users free of charge.

Techsupportalert is a community-based website which calls itself the Wikipedia for freeware. Visitors there can find and download free software. Volunteers at the site help the visitors select the software that best meets their needs.

Mac OS grabs record market share as Windows drops and Linux stagnates

According to the latest figures just published by Net Applications, a specialist Internet measurement company, Apple has seen Mac OS X grab a record gain taking it dangerously close to a 10 percent market share for the first time since the company started tracking OS usage.

In stark contrast, however, Microsoft saw a drop in the market share reported for the second month running, close to a full percentage point in fact. Indeed, the Net Applications numbers have it at an all time low now. Linux, meanwhile, continues to go nowhere fast. It seems to have somewhat stagnated in a distant third place with less than a percentage point to keep it company.

The figures would suggest that of those people browsing the web in December, and importantly visiting those sites which are monitored by Net Applications, some 88.7 percent did so using a Windows powered machine. Still a pretty impressive domination of the market, of course, but industry watchers are quick to point out that it is down by 0.94 percent on November and represents the biggest slide in four years. For the year in full, Microsoft dropped a total of 3.1 percentage points.

Apple, on the other hand, pushes ever upwards. In November it showed a record rise, and in December it did likewise with 0.76 percent growth to take it to an impressive 9.6 percent market share. Over the course of the year, the Mac OS X market share was up 2.3 percentage points which represents an annual growth rate of some 31.7 percent.

Interestingly, while Linux manages to remain pretty static in terms of market share, the iPhone is positively charging up the charts and now has a market share in excess of half that of Linux. Which is good news for Apple, because if you combine the OS X and iPhone numbers it now has more than 10 percent of the market.

Could 15,000 Microsoft jobs be lost?

According to numerous reports that is exactly what is being suggested. If the axe does fall, then it will be the first time that the company has had to make any really major cuts in the workforce during it's 32 year history.

Of course, there has been no official confirmation or indeed denial from Microsoft, but some analysts expect it to make some sort of comment at the Consumer Electronics Show in Las Vegas this week to try and put a stop to the ongoing rumour and speculation.

Personally, I doubt that we will hear anything but technology news from Microsoft at CES. Not least more about Windows 7 and possibly some upbeat news concerning the troubled Zune. There might even be an official announcement about the new Jasper-enabled Xbox 360 that has already started quietly appearing in shops.

I expect that any news of layoffs will have to wait until the end of the month after the company releases the second quarter results on January 22nd. Again, others insist that the announcement will come the week before those results are made public.

Whatever, the rumours persist, with some technology websites claiming insider knowledge and stating that Microsoft staff have been informed to expect major layoffs on a worldwide basis. MSN is said to be the most likely to be hit hardest, along with staff employed in the EMEA region (Europe, Middle East and Africa.)

Most likely I reckon there will be some job losses, but certainly nothing like the 15,000 being reported. If that is the case, of course, then Microsoft is in some serious trouble.

Windows 7 Beta arrives

Barmy Steve Ballmer, sometime monkey dancer and full time Microsoft top dog now that Bill Gates has gone, has surprised us all by informing the world that January 13th will not be Windows 7 day as predicted. The good news is that Windows 7 day will be on the 9th January instead.

Yes, Ballmer has confirmed that an almost feature complete Beta version of Windows 7 will be made available for public download for the first time tomorrow. Talking during his keynote address at the opening of CES in Las Vegas, Ballmer revealed that software developers can get their hands on the Windows 7 Beta immediately, while the general public would only have to wait an additional couple of days.

You had better hurry if you want a copy though, as Microsoft will almost certainly restrict the total number of downloads available in this fashion.

Which is not great news, considering that tens of thousands of people have been downloading Build 7000, a pirated version of Windows 7 that many security experts have warned could be a ticking time bomb, during the last week or so. If the official Beta gets closed down too quickly, people will surely turn back to the dodgy Torrent version instead.

Ballmer, however, promises that Windows 7 will help to re-define how we think about Windows. Although to be fair, I seem to recall Microsoft saying pretty much the same about Vista and I am not sure that one worked out too well.

If you want to give it a try yourself then you will need to be equipped with a PC containing a 1 GHz processor and 1GB of RAM, 128MB of DX9 supporting graphics and at least 16GB drive space.

Wii Fit helps legless, Tetris helps traumatised

Games are dangerous, corrupting, evil things. After all we have been told that playing GTA IV is more harmful to kids than watching porn and drinking beer, and how the Nintendo Wii can cause serious injury to players and observers alike.

Now, it appears, the truth is emerging. A brilliantly uplifting report explains how one-legged patients at Seacroft Hospital in England have been using the Wii for rehabilitation.

Physiotherapists at the hospital have been using Wii Fit and the balance board to help teach new amputees how to use their prosthetic legs. Apparently the balance board gets past the problem that many have with being able to put weight through the false leg by enabling them to see exactly where the weight is going. Wii Skiing has also been used to improve balance and control for these patients.

Meanwhile, that classic game of Tetris has found a place in the first aid box as well. Scientists are claiming that a game of Tetris can help overcome the symptoms associated with Post Traumatic Stress Disorder, such as worrying flashbacks for example.

Researchers from Oxford University have described the game as being a cognitive vaccine that prevents painful flashback memories by providing a visiospatial cognitive stimulation for the patient if used in the immediate aftermath of the traumatic event. It would seem that there is a six hour window in which to act, which does rather restrict the possibility of providing the treatment unless the paramedics on scene or doctors in casualty keep a charged up DS in the first aid kit next to the defibrillator.

Top Five Tech Stories From a Wacky Week

Let's face it, when you have Macworld and the Consumer Electronics Show in the same week, it's an overwhelming amount of news to deal with, even (maybe especially) for a technology journalist like myself who gets paid to follow the latest and greatest and report back to you. I've been picking my brain this morning trying to decide what to focus on, but in the end I decided to punt and give you an overview of my top stories to come out of the two shows this week. So here we go:

1. Steve Jobs Has a Hormone Disorder

I know, not really news from either show, but as I wrote earlier this week in my post Steve Jobs Lives, Story at 11, Jobs released a letter to the Apple community regarding his health. It has long been rumored he was deathly ill. He wanted to set the record straight. Apparently, he has a hormone disorder, doctors have a treatment and should be putting on weight by spring.

2. Palm Introduces Sexy New Phone, Dubbed the Pre

This is a wildly attractive new phone from the folks at Palm. I know you thought Palm was dead and buried, but just when you think a technology company is gone, there it is again. The new phone, which will be distributed by Sprint, has a touch screen interface combined with a slide out QWERTY keyboard. Check out this demo on YouTube. There is a lot to like about this phone (although I think foregoing the on-screen keyboard completely is a mistake).

3. Microsoft Scores a Mobile Search Deal with Verizon

If ever there were two companies made for each it's Microsoft and Verizon, the company you may recall that turned down the opportunity to distribute the iPhone. Well, this week Verizon announced it had chosen Microsoft to be its mobile search provider. This was actually a sweet victory for Microsoft as they beat out rivals Google and Yahoo to win the deal. Whether it was a good choice by Verizon remains to be seen, but it was good news for MSFT.

4. Apple Kills DRM on Music at iTunes

Apple didn't make a huge splash this week at Macworld, but music users everywhere let out a loud cheer when it announced that 8M of the 10M songs would be available DRM-free from iTunes. The other 2M will be available by the end of the first quarter. It also announced a tiered pricing scheme for songs of .69, .99 and $1.29.

5. Microsoft Release Windows 7 Beta

And finally, Microsoft got more love from the news cycle by announcing it was releasing a Beta version of Windows 7 for general distribution today. Unlike previous Windows Beta cycles, this one is available to the general public. Not sure why you would want to use an OS from Microsoft in early Beta beyond the curiosity factor, but the fact Microsoft made it available and released it so quickly is big news.

There you have it. Five big news stories from what has been a crazy week in technology news. If you think I missed one of the big stories, please leave a comment and set me straight.