Faulkner Systems Flash 11/15/00 (fwd)
Missy Harvey
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Date: Thursday, November 16, 2000, 2:00 PM -0500
From: Faulkner Information Services <mails...@faulknerinfo.com>
To: ???
Subject: Faulkner Systems Flash 11/15/00
Systems &Technology Flash
Copyright 2000, Faulkner Information Services. All Rights Reserved.
Publication Date: 11/15/2000
Preview
Systems &Technology Flash is a biweekly news summary, for Faulkner
Subscribers, covering computer systems and software, and vendors. This
flash covers the period 10/31/2000 to 11/15/2000.
Mergers/Acquisitions
As a means of transitioning itself from a top hardware provider to a global
leader in IT offerings, Hitachi acquired the e-business consulting group of
LLP. Renamed Experio Solutions, the independent sector of Hitachi is based
in Dallas, Texas.
In a deal valued at nine million dollars, Allaire acquired Kawa Java
integrated development environment (IDE) from Tek-Tools. The deal advances
Allaire's visual tool product line and its JRun Java application server,
allowing the company to offer customers what it considers to be powerful
visual tools for developing advanced Web applications on the
industry-standard J2EE platform.
BMC Software completed its acquisition of Quebec-based Sylvain Faust. The
acquisition of Faust's database development services will help broaden
BMC's existing range of distributed data management offerings.
In a deal valued at $486.1 million worth of stock Hewlett-Packard agreed to
acquire Bluestone Software. The company issued a presplit common share of
0.2433, for each share of Bluestone. HP plans to use the acquisition to aid
transactions via the Internet. The deal has an estimated close date of
January, with acquisition earnings reflected in the fiscal year beginning
November 2001. In addition, HP acquired a source code license for
RiverSoft's Network Management Operating System (NMOS) Version 3.
Micron Technology and Kobe Steel shook hands on Micron's plans to buy Kobe
Steel's equity interest in KMT Semiconductor, in a deal valued at
approximately $125 million or 13.5 billion yen. For Kobe, the deal sees
Micron assuming KMT's debt of a whopping $325 million or 35 billion yen.
Micron presently owns 25 percent of KMT, and will own it in its entirety by
March, 2001.
After proposing $23 per share, or US$700 million dollars, Siemens Medical
Engineering Group, a division of Siemens AG acquired Acuson. This is the
company's second acquisition this year, positioning it one step closer to
becoming an IT-driven high tech e-company. Siemens expects yearly growth in
this arena to be over 10 percent. The company appointed John Pavidis to the
position of CEO.
Alliances/Joint Ventures
Combining their Web development and Web content management services is the
first initiative sparked from the joint venture between Adobe Systems and
Interwoven. The specific goal of this initiative entailed meshing the
respective features of Adobe's GoLive 5.0 and Interwoven's TeamSite
software to allow content providers the ability to create and maintain
heavy amounts of content as they simultaneously work within GoLive 5.0.
Adobe claims that this level of content management is made possible through
metadata tagging, locking, and submission.
American Management Systems and LODESTAR formed an alliance under which the
firms will offer e-business packages to European energy companies.
American Management Systems selected Korn/Ferry International to lead its
search for the firm's new chief executive officer. Paul A. Brands recently
reported his plans to retire after serving as AMS's CEO for seven years.
Andersen Consulting and Nokia signed an agreement to help providers build
Wireless Application Protocol-based wireless services. The offering targets
Global 2000 corporations that wish to incorporate wireless capabilities in
their business.
DaimlerChrysler, General Motors, and the International Union, UAW will join
with America Online to offer the auto makers' US employees America Online's
service. In addition, through Workscape, employees will be able to tap
employee portals, from work or home, offering an array of corporate
information and personalized human resource tools.
Stellcom expanded its alliance with BEA Systems, combining Stellcom's
wireless expertise with BEA's technologies for faster deployment of custom
mobile economy services. Stellcom is a former BEA Partner and worked on
several previous e-commerce integration services.
Booz-Allen &Hamilton and Lehman formed an alliance to offer funding and
technical, executive, and financial services to start-up and spin-out
ventures. The venture will be called Innovate Lehman Brothers / Booz-Allen.
Cap Gemini Ernst &Young and Cisco Systems launched an Internet consulting
venture, called Cap Gemini Ernst &Young Telecom, Media and Networks, which
will be 95.1 percent owned by Cap Gemini and 4.9 percent by Cisco. The
business unite intends to speed offerings to telecom service providers,
suppliers of Internet access sites, and media firms.
Corio and (i)Structure formed an alliance under which Corio will provide
data center services. (i)Structure will provide Corio with application
hosting facilities, including server installation and on-site services.
An alliance with PurchasePro brings b2b e-commerce marketplaces to
Gateway's services, allowing small and mid-sized companies to use the
Internet to enhance business. The companies plan on developing three global
marketplaces where customers can look to buy and sell products and services
online. Gateway's customers will be treated like large corporations, with
access to 30,000 businesses.
General Mills and America Online created a multi-year alliance under which
the companies will implement a series of online and offline consumer
marketing programs across America Online's brands. General Mills and
America Online will work together to develop a variety of consumer
promotions and cross-marketing campaigns.
With the help of Compaq and Microsoft, GTS rolled out its Streaming Media
Service. In combining Microsoft's Windows Media Services on Windows 2000
Server, Compaq's server technology, and GTS' Ebone, GTS developed what they
consider to be Europe's biggest streaming media service. The service
extends its reach to 14 on-Net countries and 38 European cities throughout
the GTS network.
Hewlett-Packard lowered its bid for the consulting arm of accounting firm
PricewaterhouseCoopers due to a decline in its value since talks between
the companies began several months ago. Originally set for $18 billion in
cash and stock, the offer is now no more than $15 billion. An exact figure
was not revealed at the time. In addition, HP formed a partnership with Top
Layer Networks to deliver security for HP E-serviceCentre customers. Under
the agreement, HP will implement Top Layer's AppSwitch 3502 switches to
provide the connectivity between the Internet, the HP E-serviceCentre, and
client Web-hosted servers.
IBM and Silvon joined forces to produce analytic applications for business
performance management to medium manufacturing and distribution companies.
The companies create tools combining Silvon's Stratum with IBM's middleware
and hardware. According to IBM, their abundance of marketing and sales
resources gives top software developers access to new users and earnings
opportunities.
In a deal valued at $15 million, IBM agreed to supply NTT with its
outsourcing services. In turn, NTT will provide IBM with access to its
Comware staff and outsourcing and computer-services contracts with Japanese
users. The deal goes into effect this December.
InfoLibria entered into an agreement with IBM Global Services, under which
IBM Global Services will support customers implementing InfoLibria
services.
Jazztel entered into a strategic alliance with Intel to develop three data
centers, located in Madrid, Barcelona, and Lisbon, offering ASP services to
Spanish and Portuguese businesses. Intel selected Jazztel as their ESP for
Spain. Intel's Premier Providers (Investronica, Microsis, and Kern Datanet)
helped to develop the data centers for Jazztel. Intel selected Jazztel as
their ESP for Spain. Intel's Premier Providers (Investronica, Microsis, and
Kern Datanet) helped to develop the data centers for Jazztel.
KPMG and YOUcentric formed an alliance to jointly market relationship
management software. The firms will work on marketing and sales ventures
together, and KPMG consultants will be trained on YOUcentric software.
marchFIRST and OpenTide entered a joint venture to provide e-commerce
services to Korea's Internet users. Under terms of the agreement, OpenTide
will use marchFIRST's methodologies, practices, and training tools.
MetalSpectrum selected Vignette V/5 E-business Application Platform to
manage the community display, content management, and personalized aspects
of its specialties metal marketplace.
Microsoft and Compaq teamed to offer next-generation software, hardware,
and services to mobile network operators and enterprise customers. The
companies will jointly promote and sell Microsoft's mobile Internet
services and software over Compaq's ProLiant servers. The offerings are
modeled after Microsoft's Internet Cellular Smart Access (ICSA) and will be
shown to users during a beta trial of Microsoft's Mobile Information 2001
Server. The joint venture furthers the idea of anytime, anyplace
communication.
Noosh and Ariba have formed an alliance whereby Noosh will offer
collaboration and procurement services integrated through Ariba's B2B
Commerce Platform.
IBM and Palm teamed up to launch mobile e-business tools for customers of
both companies across the globe, . IBM's Global Services unit will develop
a consulting and systems integration competency to concentrate on creating
and deploying business applications for Palm OS platform devices. The
technology to do so is modeled after IBM's WebSphere Everyplace Suite. The
companies plan to utilize IBM's latest line of products and services to
allow service providers to design the IT architecture to connect the Web
with wireless networks.
Peace Software and PricewaterhouseCoopers formed an alliance to target
deregulated energy companies. The firms will jointly market PwC's customer
relationship management services and Peace's Energy suite to energy
companies seeking to use the Internet in their business.
PlumTree Software and USinternetworking reported a partnership to offer
hosted access to the Plumtree Corporate Portal 4.0.
Sausage Software entered into a strategic alliance with Unisys to create
e-business technology. The companies' goal is to aim the technology at
small to mid-sized Australian enterprises, while maintaining a global focus
on transport and aviation industries and education and interactive
development. The deal led to a $0.10 increase in Sausage's shares.
Siemens AG and Brokat agreed to co-develop a joint product for mobile
payments. Cell phone users make payments using their cell phone during real
time. Siemens AG acquired a three percent stake in Brokat and a seat on the
supervisory board.
SilverStream and Cap Gemini Ernst &Young formed an alliance to deliver and
market e-business packages and services to Global 2000 companies on the
SilverStream eBusiness platform. As part of the agreement, Cap Gemini Ernst
&Young will offer SilverStream products to its customers.
SolidSpeed Networks and IBM Global Services formed an alliance by which IBM
will resell SolidSpeed Networks' content delivery network services targeted
at small- and medium-sized businesses.
Teleglobe linked up with Inktomi in a technology alliance aimed at
delivering rich streaming media and Web content across the globe, providing
users with faster access to information. ISPs will particularly benefit
from decreased bandwidth requirements putting themselves at an advantage
over the competition in local arenas.
Trying to attain a top global position, Toshiba teamed with Siemens AG to
research and create next-generation cellular phone technology. The 3G
phones will be marketed throughout Asia and Europe for areas served by
incompatible communication systems. Although this is a joint venture, the
companies will promote the items under their individual brand names.
worldweb.net and IBM Global Services reported a partnership in which the
latter will bundle Expressroom I/O into its e-Commerce for Retail package.
Wyse Technology, Citrix Systems, and National Semiconductor teamed up to
establish ICA-based portal appliance technology. The thin technology
supports a broad range of existing and new media types and can be embedded
into unique lines of offerings. The technology created by the trio is
molded after Wyse's recent "Blazer" technology. Each company contributed to
the creation of the technology: Wyse supplied the spine and manufacturing
infrastructure, Citrix the latest ICA technology, and National its Geode
technology.
Convergence
GoAmerica and EMC reported the opening of the GoAmerica Wireless Internet
Connectivity Center (WICC). The center was built to provide high
performance, reliable, and secure wireless access to mission critical data.
The center allows for rapid data transmission and offers vast data
capacity. Specifically, GoAmerica will deliver secure wireless access to
critical data and e-mail by utilizing EMC's Celerra Enterprise Storage
System.
Micromuse and Sun Microsystems reported that Aether Systems selected the
NETCOOL suite running on the Sun platform for real-time fault management
and service assurance of its wireless data infrastructure. Using
Micromuse's Netcool suite on Sun will ensure that Aether's Network
Operations Center is running at peak efficiency.
Electronic Business
Clarus, Microsoft, and Compaq entered into a joint venture to create B2B
ExchangePaqs, allowing users to quickly create and deploy "private" digital
marketplaces. The offering is supported by Clarus' eMarket, the
Microsoft.net Enterprise Servers, Compaq's Proliant Servers, StorageWorks,
and design and implementation services from its Global Services division.
Stepping outside of its chip-making business, Intel laid down tracks in
Europe with its Internetmedia business. The venture allows users like
GuinnessWorldRecords.com and Fibro Telecom Interactive to transmit movies,
live concerts, conferences, radio programs, training, and financial
briefings via the Internet. The business, based in England, services all of
Europe. The company is spending $20 million on the project.
Sun and Commerce One entered into a relationship to produce and promote B2B
e-commerce offerings. The tools are offered globally, over Sun's Internet
platform. The companies intend to create Commerce One offerings ideally
suited for Sun's Solaris Operating Environment platform through Java
Technology.
In order to supply integrated B2B e-commerce offerings, Unisys teamed with
Ariba. Unisys agreed to resell and implement Ariba's Buyer application
across the globe as part of its Procurement Solutions Practice. Unisys
offers the application in a hosted environment to those companies looking
to take part in timesaving e-commerce opportunities minus the on-demand
cost and internal management of the offering. Unisys also supplies systems
integration services for Ariba Marketplace and Ariba Dynamic Trade.
Web Authoring, Web Development Software
With the introduction of IBM's Home Page Reader 3.0 for Windows, a talking
Web browser, the visually impaired are able to surf the Web unassisted. By
combining Microsoft Internet Explorer with IBM's ViaVoice Outloud
text-to-speech technology, the browser allows the blind to navigate the Web
by working with e-business sites. It supports nine languages through
Javascript, announcing information otherwise viewed on a Web page. This
offering is not limited in terms of converting textual graphics such as
tables and maps into audible words. The blind and visually impaired can use
this offering to conduct online purchasing, selling, and trading.
National Semiconductor's just released WEBENCH 2.0 speeds up design cycles
through automated design development, virtual physical layouts, and
Web-based simulations. The tool consists of the Easy PLL, WebSIM, and
WebTHERM. Designers can access the tool at National's Web site,
WIRELESS.NATIONAL.COM, and POWER.NATIONAL.COM.
Allaire reported licensing alternatives and customized partner programs for
ASPs. The Allaire Alliance now includes an additional ASP category and
incorporates more partners providing ASP-enabling products and services for
The Allaire Business Platform. Applications designed through this platform
are Web-centric and offered through the ASP model which is Allaire claims
is much simpler than the large packaged applications generally used in the
ASP arena.
Sage Software is offering its MAS 200 as an ASP tool hosted by IBM Global
Services in its hosting facility in Rochester, New York. The tool underwent
a series of rigorous testing at IBM's ASP testing labs to ensure its
reliability. According to Sage, the ASP tool gives customers top-notch
security thanks to the expertise of IBM Global Services.
Messaging and Groupware
Novell launched the Novell Internet Messaging System 2.6, software that
provides ISPs and ASPs with wireless messaging system. The Novell Internet
Messaging System 2.6 allows service providers secure hosted e-mail accounts
that are accessible anywhere in the world through a wireless device or a
standard Web browser. The Novell Internet Messaging System is built on NDS
eDirectory, and supports the Linux, Solaris, and NetWare platforms.
Network Switching
Four brand-new HP ProCurve Networking 10/100/1000 switches, modeled after
next-generation Application Specific Integrated Circuit (ASIC), are on the
market. The switches deemed HP ProCurve Switch 2512,2524,2312, and 2324 are
said to display 9.6 G bps of bandwidth within a sole ASIC. Two of the
switches, ProCurve 2512 and 2524 are among the first in their class to
support Link Aggregation Control Protocol (LACP) and can be stacked using
one IP address.
Remote Access
IBM unveiled Superior Wireless Applications (SWAP) software, designed to
help remote users of wireless handheld devices manage their business and
give them access to a wide variety of applications. SWAP will run on IBM's
AIX OS and can be downloaded onto the IBM eServer p640, allowing mobile
business executives to manage tasks via an Internet-ready Palm handheld
computer or other handheld device.
Broadband/Cable Networking
AT&T Broadband kicked off the trial of multiple ISPs over its broadband
network. The trial, known as AT&T Broadband Choice, will offer up to 500
customers a choice of ISPs for high-speed, always-on cable Internet service
over the hybrid fiber-coaxial network. The eight participating ISPs
represent a broad range of sizes, specialties, and geographic scopes.
Excite@Home will join the trial as an ISP that has traditionally provided
its services to cable companies. EarthLink, Juno, and WorldNet will enter
the trial as national ISPs along with FriendlyWorks, an ISP specifically
designed for seniors. RMI.net is a Denver-based regional ISP. Winfire and
Flashcom come to the Boulder trial as DSL Internet service providers. The
ISPs will share customer care processes, connect to the AT&T Broadband
network, and develop interfaces with AT&T to provide customer service.
Another multiple-ISP trial is being planned for Massachusetts next year. of
this report]
Network/Systems Management
BMC Software launched CONTROL-D for Distributed Systems, a suite of
products that manages electronic information generated in distributed
systems and mainframe environments. Reports and documents generated by
applications on diverse platforms and systems are delivered to various
destinations such as printers, e-mail addresses, and fax devices.
Additionally, BMC Software launched PATROL for Service Level Management
(SLM), a PATROL product that monitors and manages service levels. PATROL
for SLM expedites service level agreements (SLAs) and enables companies to
optimize availability and performance of its mission-critical applications.
Finally, BMC Software introduced the Solutions Provider Program for
E-business Management, an expanded channel partner initiative for
strengthening reseller relationships. It will provide channel partners
access to the products, training, support, and resources for delivering
e-business management services. This program represents a step for BMC into
the Service Provider Solutions business.
A 10 year contract, established between the Japanese sector of IBM and
Acom, entails IBM managing Acom's IT systems. The value of the contract is
between 10 and 40 billion yen. IBM surmises that Acom entered into the
contract to open up time for focusing on their main business.
Micromuse reported that Telefonica S.A. selected the Netcool suite for
real-time monitoring of one of its heterogeneous networks in Latin America.
The Netcool suite will allow Telefonica to provide customers with real-time
Web-accessible views of their network service-level agreement data,
including views of service availability, response time, and Web site hit
rates.
Tivoli Systems unveiled the Tivoli Smart Handheld Device Manager, which
will allow operations staff to manage anything from an IBM server zSeries
to a PDA using the same management structure and user interface. This
offering leverages management via the Tivoli Enterprise, and can access
corporate data as well as reduce costs associates with additional
management tools.
Security
Identix' fingerprint identification technology is being offered through
Compaq, eliminating the need for passwords in its notebooks. Compaq began
offering the technology with its desktops back in 1998. Users' fingerprints
are photographed and reinvented into personalized maps, ensuring protection
against invasion of computers by unauthorized users. The company feels that
this is a sound investment because approximately 40 percent of technical
support calls are related to password issues.
Outsourcing within the telecommunications services industry lead Fujitsu to
develop network management services. FNS picked Sun to supply the necessary
products to support these services at its Network Operations Center (NOC).
These products include: Sun's Enterprise and workgroup servers, Ray
appliances, the Solaris 8 Operating Environment, UNIX Operating System,
SunScreen Secure Net firewall software and iPlanet's Webtop VPN portal
software.
Incorporating Sanctum's AppShield was the final link needed to complete
Fujitsu's security offering. The agreement between Sanctum and Fujitsu
Systems Business of America (FSBA) included combining AppShield with
Fujitsu's Advanced Networking Solutions (FANS). This partnership completes
FANS long-term goals of providing security analysis, implementation, and
continual support to e-businesses.
Trend Micro reported that it will offer several different API protocol
support options in its ScanMail for Microsoft Exchange 5.5 antivirus
service. These options will utilize the API support option of ScanMail that
accommodates individual messaging requirements. These options can be used
by organizations until they migrate to Exchange 2000.
Application Software
Microsoft unleashed audiovisual software for Apple. The software is modeled
after Microsoft's Windows Media. In competition with Apple's Quicktime
Technology, it allows for video and graphics on PCs. The Mac version allows
users to play media-rich content but does not contain a "jukebox" for
recording music from CDs.
Data Base Management Systems
Corporations using IBM mainframes can access data wirelessly thanks to the
Oracle9i Application Server Wireless Edition. Those using the server gain
access to requested information from requested from Web sites or other
information outlets available using Web-ready wireless devices. Oracle
believes that this method is more favorable than that of IBM's, which
restricts certain data from being delivered to wireless devices. The
Oracle9I is scheduled for a December 2000 unveiling.
Using the revamped version of IBM's DB2 Everyplace allows users to store,
manage, and access data universally. The data base now supports four
additional platforms including: Microsoft Windows CE/Pocket PC, EPOC,
Neutrino, and embedded Linux. These platforms run on various devices
including cellphones, HPCs, and PDAs. The DB2 7.1 allows for true wireless
synchronization because it supports Bluetooth and IR protocols.
Servers and Mainframes
Just seven months after Hitachi Data Systems announced plans to exit the
mainframe business, Amdahl divulged plans to do the same. Amdahl's choice
is based upon the belief that the amount of funds necessary to invest, in
order to compete with IBM's 64-bit z Series 900 mainframes, would not be
worth the expected profit. Analysts warn that as competitors leave the
market, IBM will be at liberty to maintain pricing on its S/390 mainframes.
Amdahl will focus its hardware investments on Fujitsu Unix systems running
off of Sun's UltraSPARC microprocessors.
After spending much advertising capital on promoting products under various
names, IBM plans to spend $75 million doing the same on its new brand over
the next three months. The company decided to stop selling mainframes and
push their computers under the eServer heading. This rebranding initiative
includes the S390, now referred to as the IBM eServer, Z series. The goal
is to minimize confusion surrounding the existing pool of IBM's computer
brands.
Notebooks/Handhelds
Incorporating the Dell Solution Center into Dell's Inspiron notebooks and
Dimension desktop PCs went hand-in-hand with the launch of their
Internet-based computer support offerings. The Solution Center's supportive
features include Dell's Resolution Assistant, Support.dell.com, Virus
Protection, and Prevention Software; its education tools consist of
EducateU and iLearn My Dell PC.
Acer's 739 TLV notebooks include Veridicom's fingerprint sensor chip and
pre-boot authentication software. The notebooks blend Veridicom's FPS110
silicon fingerprint sensor chip with their BIOS Extension (VBX) software,
creating a final product that is compatible with Intel Protected Access
Architecture (IPAA). The sensor is located in the TravelMate's palmrest and
allows for multiple users. The fingerprint sensor works like a retina
scanner, a unique feature that only authorized users possess. This feature
protects against fraud in case the notebook becomes lost or stolen. The
companies believe that fingerprint login is much safer than using a PIN or
password which can be determined through random guessing.
Dell recalled 27,000 batteries used in its Latitude and Inspiron notebook
PCs sold from June through the current month, believing that metal got into
the cells due to a manufacturing mishap. After one customer reported a
fire, Dell decided to recall the batteries supplied by Sanyo. Sanyo
reported that although the so-called hazardous batteries exist in other
companies' notebook PCs, they are not being recalled at this time.
Gateway introduced the Connected Touch Pad, a niche device which offers
users a simple means of accessing the Internet from places such as kitchen
counters, where general PCs would be too big to fit. The offering, which
runs solely off of AOL's Internet service, comes equipped with Web features
including e-mail, instant messaging, and a family "Notepad." Gateway
envisions consumers using the Connected Touch Pad, with its 10 inch
display, for multi-tasking, such as searching for stock tips while pouring
a cup of java.
Chip Technology News
Just one week before Transmeta went public, IBM decided not to use the
startup's Crusoe chip. Instead, IBM plans to incorporate Intel's Pentium
III and Celeron chips into its ultralight ThinkPads. IBM, having made the
original deal with Transmeta back in June, would have been the startup's
strongest link to mainstream consumers.
In a multi-year deal, IBM teamed with Kymata to develop next-generation
optical networking chips for e-business applications. The co-developed
chips will help propel data and information at higher speeds across optical
networks. The result will be a product modeled after IBM's
siliconoxynitride (SiON) process technology. Kymata secured a license for
IBM's pump laser and SiON technology. The latter will allow Kymata to
produce chip blueprints for both companies. The companies look to produce
optical signals rather than electrical including modules, filters, and
versatile optical switches.
The idea of listening to music for three days non-stop became a reality
with the launch of TI's extended-lifetime battery chip set. The chip set,
referred to as the DA250, offers up to 70 hours of Internet audio playtime
using only two AA batteries. TI claims that the DA250 increases battery
life up to 50 70 percent over the top competitor.
Storage
The aim of the joint venture between Hitachi and LG, coined Hitachi-LG Data
Storage, is to gain a competitive edge in the optical disk drive market.
The companies produced and sell said drives, claiming they have four times
as much memory as that of current CDs and DVDs. The drives hold 20
gigabytes of readable memory, which means that users can store 10 hours of
video on DVDs. The company's main headquarters are in Tokyo. Hitachi is the
majority owner, holding a 51 percent stake in the company.
Recognizing its customers' needs for storage management, HP signed an
agreement with Tantia Technologies to offer Tantia's Harbor Backup and File
Transfer software to HP's customers across the globe. According to Tantia,
their backup software protects companies' data from being lost, promising
that users have constant access to their applications.
Sun entered into an eLearning alliance with VERITAS Software under which
the companies will offer the entire line of VERITAS Solutions over Sun's
Web Learning Center to provide an eLearning program to assist datacenters
in heightening their storage management. The center enables IT
professionals to take courses on VERITAS Software anytime, anyplace, and on
any platform via a Web browser.
Regulatory News
Japan's FTC accused the Japanese sector of Apple of price fixing. The FTC
claims that Apple Japan strong-armed retailers to forgo selling its iMac
desktop and iBook notebook below suggested retail prices. An official
announced that a search of Apple Japan's headquarters the previous December
ensured that Apple faced no legal action.
Vendor Services
BAE signed Computer Sciences to a $2.2 billion IT agreement. The six-year
agreement supersedes the current contract between the companies, set to
expire March 2004. CSC will manage BAE's IT infrastructure in the US and UK.
Computer Sciences released a supercomputing service dubbed e-HPC.com. It is
a multi-platform, pay-per-use service which supplies access to the latest
HPC platforms via the Internet.
Also, Computer Sciences and PowerSolutions formed an agreement by which CSC
will license PowerSolutions' technology to PPOM. As part of the five-year,
$12 million contract, CSC will host PPOM's Web site.
Finally, Computer Sciences reached an agreement to provide its eHub
application infrastructure support services to Cygnifi. The three-year
agreement calls for CSC to deliver managed application infrastructure
support with leased capacity.
Copa Airlines signed Electronic Data Systems to a eight-year, $27 million
IT services agreement. EDS will manage most of Copa's IT infrastructure and
implement system enhancements.
Electronic Data Systems released a service targeted at businesses that want
to utilize bill payment for their customers via the Internet. OpenBill
Express is a system for small to mid-volume billers, and was originally
designed to be a fully hosted ASP service.
In a deal valued at $2.3 billion, IBM agreed to provide Westpac Banking
with its IT offerings for the next 10 years. The offering will speed up the
bank's transition to a top-notch e-business in the banking arena. IBM
Global Services Australia and Telstra entered into a strategic outsourcing
venture with Westpac to offer IT infrastructure and telecommunications
services.
Financial News
AMD is in the money, with sales, operating income, and net income reaching
all-time highs for the company. The third quarter sales reached $1.2
billion, operating income of $263 million, and net income of $409 million.
The company links the high results with the sale of Legerity, heavy sales
volume of PC processors, and flash memory devices, their core products.
Comdisco reported operating results for its fourth quarter and fiscal year
ended September 30, 2000. For the fourth quarter, Comdisco reported
earnings of $70 million, or $.44 per share, compared with $44 million, or
$.27 per share, for the year earlier period. Net loss for the fourth
quarter was $168 million, or a loss of $1.05 per share, compared to
earnings of $30 million, or $.19 per common share, for the prior year
period. Total revenue for the fourth quarter was $1.03 billion, compared
with $1.0 billion, for the prior year period. For the year ended September
30, 2000, the company reported earnings of $255 million, or $1.58 per
share, compared to $70 million, or $.44 per share in the prior year period.
Net loss for the year was $67 million, or $.41 per share, compared to
earnings of $48 million, or $.30 per share for the prior year period.
Third quarter revenue for Compaq fell just short of $12 billion and net
income reached $550 million, or $0.31 per diluted share compared with $140
million, or $0.07cents per diluted share from the previous year's quarter.
Despite strong third quarter earnings, Compaq's outlook for the present
quarter is far from positive. The company also beat out its competitors in
terms of facing lagging European sales.
Computer Sciences Corporation reported its second quarter fiscal 2000
results, in which net income rose 17 percent to $109 million, or $0.64 per
share. In last year's quarter, ended September 29, CSC earned $93.1
million, or $0.55 per share. Revenues rose 12-percent to $2.50 billion,
from $2.32 billion for the year-ago quarter.
EarthLink reported that revenues reached $249.3 million, which include the
results of OneMain.com from the date of its acquisition by EarthLink on
Sept. 12, 2000. Net loss for the quarter, excluding acquisition and
merger-related costs, was $41.3 million, or $0.33 per share, while earnings
before interest, taxes, depreciation and amortization (EBITDA) was a
negative $37.9 million.
Electronic Data Systems reported that third quarter earnings rose eight
percent, but revenue was flat. Net income was $278.7 million, or $0.59 per
share, compared to net income of $158.2 million, and $0.32 per share, for
the same quarter fiscal 1999. Revenue for the quarter was $4.75 billion,
from $4.71 billion during the year-ago quarter.
Hitachi revealed results for the first half of fiscal 2000, ended on
September 30, 2000. Net sales were up by five percent to 4,011,404 million
yen over the previous year's same period of 3,802,999. Net income came in
at 61, 684 million yen compared with 4,777 million yen from the first half
of fiscal 1999.
IBM revealed third quarter 2000 diluted earnings per common share of $1.08,
up from the same period of 1999 by $0.15 for an increase of 20 percent.
Net income for IBM's third quarter reached $2.0 billion, compared with $1.8
billion for 1999. Revenue for the same quarter grew by three percent to
$21.8 billion, compared with the previous year's period. OEM revenues came
in at $2.1 billion, a four percent increase over that of the previous
year's quarter.
NEC believes that increasing demand for cellular phones and semiconductors
will help them swim out of troubled water. The company improved its
standing by eliminating fixed costs and entering into ventures with
high-risk businesses. Sales for NEC's fiscal half-year, which ended on
September 30th, are up nine percent to 2.48 trillion yen or $22.9 billion.
Memory chip sales specifically are up 45 percent. NEC attributes its merger
with Hitachi to decreasing its susceptibility to volatile price changes.
NetManage reported third quarter 2000 revenues of $25.7 million, compared
with $17.6 million in revenues a year ago, an increase of 46 percent. Net
loss was reported at $0.09 per diluted share, compared with a net loss of
$819,000, or $0.01 per diluted share a year ago. The company's abundance in
revenues can be attributed to its SupportNow and OnWeb e-business
initiatives.
Revenue for the second quarter of fiscal 2001 and six months for Rational
is up by 46 percent over last year. The second quarter revenue came in at
$187.5 million and $357.8 million in six month revenue. Net income for the
company is $34.6 million, up by 79 percent over last years $19.3 million.
Despite the weak disk-drive market, Seagate Technology rose above
predictions for its first-quarter profit. With net income of $75 million,
or $0.31 per diluted share, profits came in well above those of last year,
a mere $2 million, or $0.26 per diluted share. The company reported
revenues of $1.68 billion, a four-percent increase over that of the
previous year. The earnings statement came along with the announcement of
Seagate's transition from a publicly held company to a private one,
effective March, 2001.
Coming in ahead of forecasts, SGI reported that its fiscal first quarter
loss was not as high as expectations, which were $0.46 cents per share.
Actual loss was $49 million or $0.26 per share, compared with a loss of
$225 million or $1.24 per share for the previous year's quarter.
Legal News
Schiffrin &Barroway, LLP recently filed a lawsuit against Allaire. The
company claims that Allaire violated the anti-fraud provisions of the
federal securities laws for time period of July 20-September 18, 2000.
Compaq is seeking $17 million worth of damages for breach of contract and
fraud. Compaq alleges that The Baxter Group and Peter Mellon acquired $60
million worth of Compaq products, between October 1998 and October 1999, at
reduced prices by falsely stating that they secured a contract with the
company.
The law firm of Kirby McInerney &Squire reported that a judgment of more
than $10 million was entered today against Computer Associates. The jury
found Computer Associates liable for violation of the Williams Act
provisions of the Securities Exchange Act of 1934, 15 U.S.C. ss. 78n, and
the SEC's implementing regulations, in connection with Computer Associates'
acquisition of On-Line Software in 1991.
After recently unveiling its eServer line, IBM already faces a potential
lawsuit over the brand name. Technauts sells servers under the same name,
which it holds ownership of under trademark. IBM holds that it is not
infringing upon trademark rights since the name it uses is different; the
letter e in eServer is encircled. While Technauts has been using the logo
since 1999, IBM has been doing so for close to three years. It is unlikely
that IBM will give up the name without a fight since they have too much
money at stake.
marchFIRST is being sued by Wolf Haldenstein Adler Freeman &Herz LLP, on
behalf of purchasers of marchFIRST securities during the period between
July 25, 2000 and October 23, 2000. The lawsuit claims that marchFIRST
issued false and misleading statements which unlawfully inflated the price
of the securities.
Seagate Technology, Veritas Software, and a group of private investors
decided to settle a lawsuit between some of their shareholders over the
possible acquisition of Seagate. The investor group agreed to pay an extra
$50 million for Seagate's operating assets and lower the amount of money
held in escrow by the company, from $300 million to $150 million, to cover
its back from tax impositions. Seagate will turn this money over to the
shareholders in mention after the closing of the acquisition.
While Compaq, Hewlett-Packard, and NEC among others remain under
investigation for selling faulty computers to federal agencies, Toshiba
settled their claim by compensating the government $33.5 million in return
for 60,000 bad computers purchased by the government since March of 1998.
This settlement puts an end to inquiries on the dependability of Toshiba's
laptops. The specific defect under mention is a semiconductor chip
controlling the floppy disk drives which leads to sporadic corruption and
even total destruction of information without the chance to prevent it or
the knowledge that the problem occurred.
Personnel and Organizational Changes
Electronic Data Systems opened its Asia Pacific headquarters in Hong Kong.
David B. Wright, president and CEO of Amdahl, a Fujitsu subsidiary,
resigned to pursue other interests. During the interim, executive vice
president Yasushi Tajiri is acting CEO.
Mitch Mandich, senior vice president of worldwide sales for Apple, turned
in his resignation, effective the end of this year. Apple suggests his
departure could be linked with the hard times the company is facing as of
late. Tim Cook, Apple's senior vice president of operations, will serve
Mandich's role until a replacement is hired.
Shane Robison succeeds Bill Streaker as CTO of Compaq Computer. Robison,
also appointed senior vice president of Compaq, was solely responsible for
the production and implementation of all Internet offerings for AT&T, where
he formerly served as president of IT and development.
William H. Gray III is the latest addition to Dell's Board of Directors.
Gray served as the president and CEO of the United Negro College Fund since
1991. Prior to serving in the UNCF, Gray represented the second District of
Pennsylvania in the US House of Representatives and served as a temporary
special advisor on Haiti to President Clinton.
The Egyptian cabinet allowed Intel to build a microchip plant in Egypt. The
deal is lucrative for Egypt as it flows in $500 million worth of investment
and creates close to 3000 jobs for the country. The cabinet also granted
Intel permission to use Egyptian land for the construction.
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