February 1 - 7, 1999

from the Up-To-Date dept

Please note, this week's Up-To-Date is simply a "dramatization" of a newsletter. A real newsletter will be produced next week under the watchful eye of both government and Microsoft lawyers.
 Up-To-Date  
--------------------------------------------------------------- 
The not always serious, 
not always weekly update
on the High-Tech Industry
February 22nd - February 28th, 1999 
--------------------------------------------------------------- 
Please note, this week’s Up-To-Date is simply a 
           “dramatization” of a newsletter.  A real newsletter
           will be produced next week under the watchful eye
              of both government and Microsoft lawyers.

  -------------- 
  Contest 
  -------------- 
  Two of my favorite high tech CEOs sounded off on what should happen to
  Microsoft.  Scott McNealy is against splitting up MS into "Baby Bills", but
  his buddy Larry Ellison has a more innovative solution.  He suggests
  splitting MS in half: Steve Ballmer runs one half and Bill Gates leads the
  other half.  Then, let the battle begin.  This is a pretty creative solution,
  which brings up Up-To-Date's first ever contest: can you come up with a
  more innovative/creative solution on what should be done with Microsoft? 
  This does not have to be plausible, just creative.  Assuming any of you
  actually enter, I will probably post the winning answers (if there are any) in
  two week's time.  Being that this is a not-for-profit (hell, not for anything)
  operation, I have nothing to give out except getting your name and idea
  published here.  Lame?  Yes.  Do I care?  Not really... Send contest entries
  to ms@techdirt.com. 

  -------------------- 
  Say that again... 
  -------------------- 
  "This is sick. This reeks of greed. Boy, these lawyers are sticking up for
  their own, aren't they? I don't think they're representing you or me." 
  - Ann Stephens, President of PC Data, on the Texas judge's decision to ban
  legal software such as Quicken Family Lawyer because it amounts to the
  "unauthorized practice of law". 

  "It should be understood by those skilled in the art that a Web browser,
  such as Netscape Navigator or Internet Explorer ... is separate from the
  operating system."  
  - Microsoft’s patent lawyers in a 1998 patent application.  Aren’t lawyers
  wonderful? 

  "It's like handing out speeding tickets at the Indy 500. You can pull over
  whoever you want to." 
  - Bill Burnham, Credit Suisse First Boston, on picking on E*Trade for its
  outages...  

  "I think I will ask my lawyer about that tomorrow." 
  - William Tucker, founder of The Elevator, a Garage.com wannabe, when
  asked about the fact that his site may violate SEC rules, by not
  pre-screening investors. 

  "My first impression of the deal was almost no impression at all." 
  - Scott Smith, director of Internet business strategies at Current Analysis on
  the AOL MovieFone deal. 

  ------------------------------------------ 
  Earnings Reports, IPOs and the like 
  ------------------------------------------ 
  Apple cutting jobs in Ireland (that’s what happens when you post nice
  earnings that are based solely on cost cutting – to do it again, you have to
  keep cutting)... Oracle, appearing a week late in the split announcement
  business, plans a 3-for-2 stock split... Later on in the week, Oracle Japan
  had its IPO, making it the highest valued stock on Japan’s over-the-counter
  market... Sprint PC lost over half a billion dollars in their last quarter as they
  prepare to go public... More IPO madness: Perot Systems had their
  impressive debut, as did ModemMedia.PoppeTyson or whatever it they’re
  called.  The most impressive, though, was Pacific Internet, a Singapore
  based ISP that priced at $17, opened at $88 and spent the rest of the
  dropping to about $48 (and without the obligatory .com!)... Cisco beats
  estimates as its revenues shoot up (but investors are pissed off that they’re
  not splitting the stock)... Qualcomm has decided to lay off almost 700
  people, and “reassign” another 250... Intel to sell over 300,000 shares of
  Broadcast.com... Lots and lots of problems at AMD (has this company ever
  had a good reputation?)... CompUSA earnings less than half of last year’s,
  as they announce (ooh, how original) plans to spin off their online unit... N2K
  beats estimates, but is still losing a ton of money... Infospace.com beats
  estimates, but is still losing a ton of money... Paul Allen invests $104
  million in Ziff-Davis (is there anything he hasn’t invested in?)... Mellon Bank
  has bought nearly 6.5% of Apple Computer... Microsoft planning a
  reorganization to place more focus on the Internet... NetObjects files to go
  public...  

  ------------------------------------------------ 
  Rumors, Conspiracies etc. of the week... 
  ------------------------------------------------ 
  Microsoft's plans to bring together its 9x and NT architecture further off than
  originally thought.  Expect at least one more consumer Windows not based
  on NT (suggesting that NT 5.0 is more screwed up than we already
  assume?)... Okay, would this one just happen already: NBC to buy 25% of
  Lycos and merge Snap! into Lycos (this has been over reported)... Of
  course, this puts the Yahoo! to buy CNet rumor into a different perspective,
  but who knows... Dell has recently registered dellauction.com... MTV Online
  is planning on buying Imagine Radio (after talks fell through with
  Spinner.com)... Compaq putting desktop AMD chips into portables (wonder
  why that laptop’s on fire?  Now you know)... @Home is still looking into the
  idea of buying Road Runner (buy the competition while they’re cheap, and
  your stock is over inflated.  What could possibly go wrong?)...  

  ---------------------------------------- 
  News you should have read elsewhere 
  ---------------------------------------- 
  AT&T in a deal with Time Warner to offer telephone service over coax...
  Microsoft admits to making a "dramatization" instead of an evidentiary video
  (say what?)... AOL bought MovieFone, leading to painful jokes about
  combining two of the world's most famous voices... E*Trade gives the world
  a little lesson on testing your software upgrades before you release them
  (three days of outages, pissed off investors, and E*Trade’s fairly obnoxious
  replies has many investors looking for other ways to piss away their
  money)... AT&T doesn’t have to open up its high speed Internet network to
  greedy other companies (go build your own, dammit)... MCIWorldcom jumps
  back into the Internet space by teaming with CompuServe (so when do we
  get the big merger of MCIWorldcom/AOL/Netscape/CompuServe?)... US
  Department of Commerce and the FTC to track e-commerce in their monthly
  economic indicators...  

  -------------------------- 
  News you could do without 
  -------------------------- 
  ICG dumps off the Canadian bit of Netcom (as if this matters)...
  TheGlobe.com buys Azazz.com (the online department store you probably
  never heard of) for plenty of inflated stock... Seems as though CDA II (aka
  COPA) is doing a repeat of CDA I... Sony and Intel, along with Amerindo
  Investment Advisors dumps $12 million into Spinner.com... TV Guide Online
  relaunches again (again)... CNet buys little known NetVenture's for their
  ShopBuilder technology... Network Solutions makes a deal with Netcom so
  that Netcom can sell domain names (yes, this is the same Netcom that
  doesn't really exist any more)... Apparently TV advertising wasn’t the only
  place that made big money during the Superbowl: SportsLine raked in
  nearly a million dollars in sponsorships for their coverage of the game...
  eBay continues to shell out cash to Netscape to be a “distinguished”
  provider on Netcenter (“distinguished” meaning what exactly?)... CDNow is
  giving its one-millionth customer a free CD each day for a year... OnSale
  reaches its one-millionth registered user (but did they give them
  anything?)... Amazon.com admits that they’re not even *trying* to become
  profitable (yet)... Eolas Technologies is suing Microsoft for patent
  infringement for making “plug-ins” and “applets” (I sense quite the uphill
  battle)... Auctioning off eBay’s “Cool Shopping Site of the Year” award
  (which they couldn’t be bothered with picking up) on eBay (Todd Levin gets
  an A for concept, but a C on execution – besides, how many of those bids
  do you think are from his friends?)... First USA to pay AOL $500 million
  dollars for an advertising/co-branding partnership (um... no, it can’t be worth
  that much)... Borders.com has become the exclusive bookseller for go.com
  (wow, two sites that no one visits have found each other)... GoodNoise feels
  the pressure of the Harry Fox Agency and will start making royalty
  payments for downloaded music (and reels in Rykodisc to provide
  content)... Intel to work with Analog Devices on DSPs... Yahoo! to create
  co-branded home pages for members of Gateway.net (while I understand
  that people are lazy, and unlikely to change their default home page, I still
  don’t see how this is that big of a deal)... FAO Schwarz’s web site
  accidentally displays personal info about customers... Sony doesn’t get its
  temporary restraining order against Connectix for its Playstation emulator...
  Companies don’t feel Priceline deserves a patent for its reverse auction
  business model... Intel is pissed off that computer manufacturers are
  already selling Pentium III based machines (get over it)...  

  ------------ 
  Surprises: 
  ------------ 
  Lycos decides to get into the MP3 portal business (and faster than you can
  download a song, the fun folks at the RIAA freak out - but it's okay now,
  because Lycos will only point to "legal" MP3 sites)... Macintoshes, which
  claim to be Y2K compliant, are only partially so: apparently after next year it
  will interpret many two-digit dates as starting with 20.  Thus, those files you
  saved from 1995, are really waiting to be created in 2095... Qwest beats out
  AT&T, Sprint and GTE to upgrade the Treasury Department’s
  communication infrastructure... Lycos to tie in Open Market’s ShopSite to
  their e-commerce infrastructure (Massachusetts based companies have to
  stick together, apparently)... Government lawyer in the MS trial so
  unaccustomed to techno-speak that he pronounced “log-in” as “lojun”... Yes,
  it was only a week ago that AT&T WorldNet was having trouble handling
  their load of users.  Yet, this week they’re ranked the top ISP in the country
  by PC World (they say the Internet world changes quickly, but, that’s a little
  too crazy)... Sierra actually recalls NFL Football Pro 99 and offers a full
  refund, apologizing for releasing a game that’s “too buggy” (now, you know
  there’s a company that has no former Microsoft folks near the top)... Every
  time you try to like Microsoft (and, believe it or not, I sometimes do try),
  they do something like telling all their employees to fake posts to online
  forums rooting for Microsoft... Microsoft wins a patent for stylesheets? (No, I
  don’t know what the patent office was smoking)...  

  ------------------------------- 
  (Mis)Uses of Technology: 
  ------------------------------- 
  Building Audible's technology into WinCE machines (yet another weird
  attempt at taking on MP3)... Divx hacks (do we care that much?)... Intel and
  Mattel to work together to create new toys (but will they fight with
  Microsoft's Barney?)... Bell Atlantic and IBM to create “smart homes”
  (having once lived in Bell Atlantic territory, I can safely suggest *not* being a
  part of the beta tests for this)... My Ticketmaster (and the fact that it took
  them nearly a year and a half to actually implement the 360 degree photos
  of event venues)... MIT’s Sloan School creating an Internet Time Capsule to
  record the state of the Internet for five years (as if any of us would like to go
  back 5 years and relive the fun of gopher?)... It’s been so long since my
  weekly Mir jokes: but this week they attempted use a giant mirror to shine
  reflected light on the earth (sound like the plan of an evil genius in some bad
  movie?).  Of course, in typical Mir fashion, nothing worked, and the whole
  thing was aborted (keep up the good work, guys!)... Hearme.com discovers
  the wonders of party lines on the Internet... Starbucks to start opening up
  Internet cafes (but will they give confusing names to normal internet
  functions so we’ll be even more confused?)... PalmPilots being used in
  British supermarkets for personalized shopping lists...  

  ---------- 
  Studies: 
  ---------- 
  A Stanford University exercise expert has determined that if you spend 2
  minutes a day emailing colleagues instead of walking over to talk to them,
  you will add about 11 pounds over the course of a decade.  Damn, I think
  that means if I stopped emailing folks at work, I'd weigh nothing within just a
  few years - what a diet...The General Accounting Office's study of welfare
  readiness for Y2K finds that Medicaid systems are only 16% ready...
  According to eMarketer seven times as many emails were sent than first
  class snail mail over the past year... IDC has found that nearly $100 million
  was spent in 1998 on home banking applications, and expect that number
  to more than triple this year... A study by IDG has found that e-commerce
  sites cost an average of $6 million to build and $13 million to maintain on an
  annual basis... Demand for cable modems beating xDSL 14 to 1, according
  to Broadcom (let’s see, considering the fact that most consumers will make
  the decision based on price, and phone companies have been too stupid to
  realize this, while cable modems are being offered at reasonable prices,
  yeah, that makes sense)... Edison Media Research and Arbitron have
  released a new study showing that nearly 13% of people in the US listen to
  radio on the Internet... According to Piper Jaffray the number of accounts at
  online brokerages nearly doubled over the last year, making 1998 the year
  that “individual investors discovered the power of trading online” (and online
  brokerages discovered the problems of crappy software – and 1999 can be
  the year they discover lawsuits)...  

  ----------- 
  Overhype 
  ----------- 
  The Victoria's Secret fashion show webcast.  No matter if a million people
  saw it or couldn't see it because the video was too choppy to get a "clear"
  picture of the material, this was talked about way too much.  How many
  reporters chose to write about this, just so they could justify their own
  chance to look at half naked women on the web?...  

  -------------- 
  Predictions: 
  -------------- 
  As if this isn't obvious: but the term Portal has to start going away.  Now
  that Weatherlabs has announced plans to make a "Weather Portal", it has
  become abundantly obvious that this term has outlived its usefulness (if it
  ever had any)...  

  ------------------------ 
  Too much free time: 
  ------------------------ 
  If you were a disgruntled Blockbuster Video employee with an AOL account
  and too much free time, what would you do? 
  http://members.aol.com/caly5150/index.html  
   
--------------------------------------------------------------- 

Up To Date is written by Mike Masnick from whatever news he hears from whatever sources they happen to come from.  It is not intended for any uses other than as one of many possible ways to follow what's going on in the hi-tech industry.  I certainly wouldn't rely on it as your only source of info.  And, of course, my comments may not accurately reflect reality. Finally, an explicit warning about investing: I do not, under any circumstance, consider any piece of information in this newsletter "investment advice" and neither should you. 

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