Tuesday, October 20, 2009

MICROSOFT OPENS WINDOWS 7 TO RECHARGE PC GROWTH

Pricing almost the same as Vista; cheaper for some editions

New Delhi: Call it serendipity or a well-calculated move. Whatever the case, software giant Microsoft appears to have got the timing right for the launch of its much-hyped operating system (OS) Windows 7 on October 22. And while commercial and enterprise users gave the thumbs down to the "memory guzzler" (anathema for PC users) Windows Vista, analysts say Windows 7 will find many takers globally and in India too.

The timing, say analysts, coincides with the world's appetite for personal computers (PCs) picking up again after the global slowdown.

"Windows 7 will benefit from two drivers in the enterprise market. One is the long-awaited IT replacement cycle ticking in and the second is the related uptake in IT investments. For the consumer markets, too, Windows 7 will become the de facto standard for new purchases," says Alok Shende, principal analyst, Ascentius Consulting.

Research firm IDC, too, says such growth ahead of the launch of Windows 7 bodes well for it. It predicts that around 177 million copies of the operating system will be in place by the end of 2010, and estimates that products and services surrounding Windows 7 will generate $320 billion.

"Undoubtedly, there was a lot of hype over Windows 7. And there was hardly any enthusiasm over Windows Vista since the emphasis of the OS was on snazzy graphics that gobbled memory. With Windows 7, Microsoft appears to have got its priorities right.

Windows 7 is a kind of Vista OS which has been optimised to the core," says Sumanta Mukherjee, lead PC analyst, IDC India.

Microsoft will release its India pricing on October 22. "It will be more or less the same as Vista, and cheaper in some editions," according to a Microsoft spokesperson. While the Microsoft Vista Home basic costs around Rs 3,500, the Home Premium version is priced at Rs 4,800. Microsoft Vista Business costs around Rs 6,400 while Microsoft Vista Ultimate is priced at Rs 9,500. The prices may vary by city and partner.

Consumers may start lapping up Windows 7 initially since PC manufacturers in India had been offering an option to freely upgrade from Vista. The Microsoft OS (XP, Vista included) is estimated to have an around 70 per cent market share in India.
The rest comprises the disk operating system or DOS (which is latter upgraded to another OS -- mostly a pirated Microsoft OS or a Linux one), Apple OS (the latest being Snow Leopard) and Linux variants (from Red Hat and Novell).

However, "enterprises may take at least six months before they adopt Windows 7 since they like to wait for the first service pack," explains Mukherjee.
Windows 7 is being likened to "an evolution of Vista" by some analysts. It has the same system requirements. For instance, notes Mukherjee, even Netbooks (scaled-down notebooks) will be able to use Windows 7. Imagine doing that with Vista.

What is working in Microsoft's favour, note analysts, is that the software giant has been speaking to PC manufacturers and third-party vendors for the past few months. Globally, PC manufacturers like Hewlett Packard and Dell are hoping for a big boost in sales of new machines with Windows 7 in the run-up to Christmas and research analysts say the launch will have an immediate impact on PC unit growth.

Microsoft, despite claims to the contrary, has not had much success with Vista which was launched in 2006. Analysts estimate that just one fifth of the world's 1.2 billion computers use Vista. About four fifths use Windows XP (launched in 2001), introduced eight years ago, or even older Windows operating systems. XP is eight years old, but still runs on 70 per cent of all the Windows PCs across the globe. Microsoft will end active support for XP by 2014, and extended support by 2017.

Moreover, around 58 per cent of corporate customers were either dissatisfied or extremely dissatisfied with Vista, according to Credit Suisse. With Windows 7, which has been available in pre-release versions for several months, only 21 per cent are dissatisfied and none extremely dissatisfied.

But there are costs associated with the upgrades and migration to Windows 7. Gartner estimates that migration costs could be between $1,035 to $1,930 for a user to move from Windows XP to Windows 7, and $339 to $510 from Windows Vista. Large corporations can expect to spend millions of pounds upgrading.

Last, but not the least, Microsoft is being threatened by "cloud computing" (vast data centres that host numerous software eapplications remotely which will eliminate the need to buy upgrades in a box or maintain hard drives at home or in office) initiatives from Google and Apple. Search giant Google has already announced that it will soon launch a free PC operating system, Chrome OS. However, says Mukherjee, "in India, it will be some time before cloud computing initiatives pick up".

Thursday, October 15, 2009

MICROSOFT PATCHES 34 SECURITY HOLES,MANY CRITICAL

Microsoft Corp. issued a record number of security patches for its software Tuesday as part of its regular monthly update.

The software maker plugged 34 holes and designated most of them "critical," Microsoft's most severe rating. Among them are fixes for Windows Vista, Windows XP, Windows 2000 and even Windows 7, which doesn't go on sale to consumers until Oct. 22 but has been in use by early testers and software developers.

The patches target a wide array of Microsoft software, including the Internet Explorer Web browser, Media Player, Outlook and the Silverlight technology underlying multimedia Web sites.

Security researchers at McAfee Inc., which makes antivirus software, noted that many of the holes addressed Tuesday are dangerous because they expose regular PC users to harmful programming code when they visit rigged Web sites or play media files that have been tampered with.

Consumers can get the updates by turning on the "Automatic Updates" feature in Windows or by visiting www.microsoft.com/security.

Previously, the most security flaws Microsoft had addressed in a single update was 31, which happened in June.

WINDOWS 7 RELEASE MAY TEST APPLE'S WINNING STREAK

San Francisco: Apple Inc's Mac computers have steadily gained market share over the years, a winning streak that may be tested by next week's launch of Microsoft Corp's new Windows 7 operating system.

Few expect the new software to dent Apple's standing in the market in the long run, given the company's premium position and the fact that its dedicated user base largely ignores events in the Windows universe.

However, some analysts warn that Windows 7 - which is garnering strong early reviews - may initially slow Apple's advancement and apply more pressure on Mac prices, particularly in the United States.

Microsoft's Vista operating system, released in early 2007, was plagued by problems and bad press. For Apple, this meant an opportunity that the company seized upon.

But if the new Microsoft offering works as expected, Apple may not be able to count on Windows' clumsiness as a sales driver.

For its part, Apple expressed little concern about the new Windows. "New Mac users continually tell us that they are tired of all the headaches with Windows, and they want the ease of use, stability and security of a Mac," spokesman Bill Evans said.

"At the end of the day Windows 7 is still just Windows." And some analysts argue that Windows 7 hype might end up helping Mac by enticing customers into stores and lifting overall computer sales amid the marketing hoopla.

"The Apple story is pretty idiosyncratic, company-specific, not really dependent on other parties," said Broadpoint Amtech analyst Brian Marshall, citing research showing that Microsoft's launches over the years have acted as catalysts for Mac sales.

Although its iPhone gets more press, Apple still derives the largest chunk of its sales from computers. Macs generated about 40 per cent of the company's revenue in the June quarter.

Marshall thinks Apple can double its share of the computer market over the next five to 10 years. Enderle Group principal analyst Rob Enderle agreed that the Windows 7 launch could end up boosting Mac sales.

"It could very well be a tide that lifts all boats," he said. "Windows 7, with a lot of marketing dollars, is going to drive a lot of people into stores. The extra traffic could actually help Apple."

But Enderle cautioned: "Windows 7 is good. It doesn't have the problems Vista did, so gaining share gets a lot tougher."

A profitable slice

Although Apple is not among the top five PC makers globally, it ranks No. 4 in the United States, according to research group Gartner, with a market share of 8.7 per cent.

Three years ago, Apple's US share was 4.6 per cent. Apple sold 2.6 million Mac computers during the June quarter, up 4 per cent from a year earlier. Windows 7 comes on the heels of the release of Apple's newest operating system, Snow Leopard, in August. Early sales of the $29 upgrade have been strong, analysts said.

Although Microsoft's software drives more than 90 per cent of the world's PCs, Apple has managed to carve out a highly profitable slice of the market.

It charges a premium price for Macs, which attract loyal consumers willing to spend. In June, on a dollar basis, Apple accounted for an eye-popping 91 per cent of PCs that cost more than $1,000 and were sold at retail in the United States, according to research group NPD.

High prices help Apple enjoy margins on Macs that analysts estimate at roughly twice the average for PC makers.

Prices on Windows-based PCs have been declining for years, a trend that seems to be accelerating with the new crop equipped with Windows 7.

Vendors such as Hewlett-Packard and Toshiba are rolling out thin and light, full-featured Windows notebook computers in the $500 range. By contrast, the cheapest Apple MacBook starts at $999.

NPD analyst Stephen Baker said a bigger near-term threat to Apple was tumbling prices on Windows PCs and the still-sour economy. He said the Microsoft-Mac rivalry was not the whole story.

"We always want to pit Windows and Apple against each other, and I'm not sure it's that simple," he said. "People are getting both, and they see a value to both."

Roughly 12 per cent of all US computer-owning households own Apple, NPD said, up from 9 per cent in 2008. Of that 12 per cent, close to 85 per cent also own a Windows PC.

Tuesday, October 6, 2009

MICROSOFT CEO's COMPENSATION DOWN 6 PERCENT IN '09

The value of the compensation package granted to Microsoft Corp. CEO Steve Ballmer fell about 6 percent in fiscal 2009, a year in which weak computer sales cut into the software maker's profits.

Ballmer received a pay package valued at $1.28 million for the year that ended in June, according to an Associated Press calculation of figures disclosed in a regulatory filing Tuesday.

Ballmer's salary, which is set at the beginning of the year, increased by 4 percent to $665,833. The CEO's bonus was cut by 14 percent to $600,000 from $700,000 in 2008, according to the company's annual proxy statement filed with the Securities and Exchange Commission. According to the filing, the company's compensation committee evaluates Ballmer's performance in the fiscal year, looks at what other Microsoft executives will be paid and "exercises its judgment" in recommending his bonus. Ballmer could have received up to 200 percent of his base salary, or about $1.3 million.

The balance of Ballmer's pay came in the form of $7,350 in company matches to his retirement savings account and $3,444 in imputed income from life insurance, disability insurance and athletic club membership, or payments in place of an athletic club membership.

Ballmer did not receive stock or stock options in 2009. He currently holds 4.6 percent of Microsoft's shares. Bill Gates, Microsoft's founder and current board chairman, owns 8 percent of the company's stock.

Microsoft's fiscal year ended on a down note in June as the economic crisis continued to hammer technology sales. The Redmond, Washington-based company's revenue fell 3 percent from 2008, the first such decline since Microsoft went public in 1986. Earnings sank to $14.6 billion from $17.7 billion in 2008.

Microsoft's biggest businesses, Windows and Office, are tied to the health of the PC industry. Since the economic meltdown, consumers and businesses have both cut back on buying computers. The last three months of 2008 marked the PC industry's worst holiday season in six years. For 2009, market research firms IDC and Gartner have both predicted a year-over-year decline in PC shipments, which would be the first such drop since 2001.

The company said that as a whole, executive officers' incentive compensation was 29 percent lower than in 2008. The company said it would not give Ballmer or other executive officers merit-based salary increases in fiscal 2010.

Microsoft reported Ballmer's higher salary, but not his bonus cut, in a draft filing with the SEC on Sept. 19.

The company had also previously announced that shareholders will have a chance to vote on a "say-on-pay" measure proposed by the board at its annual meeting on Nov. 19. The proposal would give shareholders a chance to weigh in, in a nonbinding fashion, every three years on executive compensation.

The board is also proposing changes to company bylaws that would give groups of shareholders representing 25 percent or more of outstanding shares the right to call special shareholder meetings — a right Microsoft said in the SEC filing is "increasingly considered an important aspect of good corporate governance."

Shareholders also will have the opportunity to vote on two proposals from their peers. One, from the AFL-CIO Reserve Fund, asks Microsoft to adopt principles for health care that include support for universal, continuous, affordable coverage for individuals and families.

The second, from a shareholder in Ohio, suggests Microsoft list recipients of company charitable gifts over $5,000 on the company's Web site.

Microsoft's board is recommending votes against both proposals.

HOTMAIL PASSWORDS EXPOSED: MICROSOFT

Seattle: Microsoft Corp said on Monday that passwords belonging to some users of its Hotmail email service were exposed on an Internet site, but had since been taken down.

The company did not say how many users were affected, but some reports suggested that passwords to more than 10,000 accounts were exposed.

"We are aware that some Windows Live Hotmail customers' credentials were acquired illegally by a phishing scheme and exposed on a website," a Microsoft spokesman said.

Phishing is a scam whereby fraudsters get hold of personal information by sending out emails under the guise of a bank, IT department or some other trustworthy source. Microsoft said the passwords had been removed from the offending website, which it did not identify, and said it had blocked access to all affected accounts and was helping users to reclaim their Hotmail accounts.

The software company said the exposure of the passwords was not a breach of any Microsoft servers.

Sunday, October 4, 2009

IBM EMAIL SERVICE CHALLENGES INTERNET GIANT GOOGLE

San Francisco:IBM on Monday will begin offering businesses a basic "cloud computing" email service at a price that undercuts a plusher offering by Internet giant Google.

IBM unabashedly pitched its new LotusLive iNotes as an alternative to email service Google has been promoting as part of a campaign to win businesses over to using applications hosted as services on the Internet.

"Email and other collaboration services are the right entry point for many companies to realize the promise of cloud computing," said IBM Lotus Software general manager Bob Picciano.

"But, only if clients feel confident they're getting business-grade service from a trusted leader in enterprise services."

Software provided online as a service instead of being purchased and installed on home or office computers has been a growing trend accelerated by tough economic times because it is cheaper to "rent" than to buy software.

MAKE YOUR E- MAILS WORK FOR YOU

Here's the foremost rule of e-mailing: grab attention with the subject line. Subjects such as 'Urgent , 'Follow-up' or 'Looking for a response' become hazy, generic and ambiguous markers. In order for e-mails to command attention, its subject line should contain the key message (eg.: "Sales meeting re-scheduled to 2 p.m. Thursday ), which will also allow your reader to retrieve your message effortlessly.

What's government's role in making the Web secure?

Brevity is not just the soul of wit it's also the essence of an e-mail. Communications expert Deborah Dumaine suggests taking up one topic per e-mail. "Treat each e-mail as a coherent information packet to ask a question, communicate your opinion, report news and so on, she says. With this approach, readers can respond to your message more easily and your message can be forwarded without any drag-alongs.

Also, focus on who your audience is. A survey of 2,300 Intel employees revealed that people judge nearly one-third of the messages they receive to be unnecessary. Employees surveyed received an average of 350 messages a week and executives up to 300 a day. Besides, when writing to your peers and friends, you can be as informal as you want.

When writing for business, adapt your tone and language to the reader. Morgan Stanley's Asia economist Andy Xie's e-mail harangue cost him his job a couple of years ago when an e-mail that he wrote containing disparaging comments about Singapore was leaked to the press.

This brings us to another peril of new age communication: Nothing in your official e-mail is confidential. Former Australian Test batsman Justin Langer learnt a harsh lesson in how quickly an e-mail aimed for a private audience can become public. During The Ashes in August this year, in a private e-mail meant only for coach Tim Nielsen, Langer called English cricketers 'lazy' and 'shallow'. While this leaked e-mail didn't have a major fallout, you are unlikely to be as fortunate at your workplace.

Steps to a Smart E-Mail:

Put precise words in the subject line.

Put all the important information on the first screen.

Use bullet points, short sentences and paragraphs.

When forwarding a message, revise the original subject line, if needed.

Avoid 'Reply All'. Send e-mails only to people who need to receive them.

Avoid sending private messages via official e-mail.

Delete mass mailings; don't forward them.

If you keep sending messages back and forth without reaching a resolution, plan a meeting