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News and analysis to 21st March 2003

US army under attack

A vulnerability in Microsoft’s web server software was discovered recently when one of the US military’s servers was compromised. This ‘hole’ enables unauthorised users to take complete control of the server. The recent incident involved an ‘uninvited guest’ using the server in question to build a map of the network on which it resided. Let’s hope that the much-touted ‘smart bombs’ are more resilient to hack attacks.

EDS suffers brownout

Outsourcing giant EDS has had a change at the helm in an attempt to draw a line under what for them has been a terrible year. Heavy exposure to Enron and WorldCom, coupled with credit rating drops and profit warnings has led to CEO Dick Brown having more free time. He is replaced by Michael Jordan, ex CEO of CBS, and Jeffrey Heller, ex vice chairman of EDS. Up until very recently Mr Heller thought he had hung up his Montblanc for good.  

Penguin attacks Windows

Open source operating system Linux is taking share from both Unix and Microsoft Windows according to Evans Data Corp. This contradicts Microsoft’s assertion that Linux is growing at the expense of just Unix. Specifically 52% of developers now using Linux were Windows based. 30% were previously Unix based. From the Unix community Sun Microsystems’s Solaris led the attrition rates with 9%. In summary Linux is more than a Unix replacement.

Symbian’s wild

030303 marked the arrival of Hutchison’s ‘3’ 3G wireless service in the UK and Italy. Shortly afterwards came the phones needed to use the service. The phones provided by Motorola are based on the Symbian consortium’s SymbianOS operating system, which is based on that of erstwhile UK palmtop maker Psion. Symbian comprises many of the key players in the wireless marketplace, but it has been slow to make an impact in the market. This is a critical launch for Symbian as Motorola is also exploring PalmOS and Linux as handset platforms. Given that Microsoft is also emerging as a player in the wireless jungle it will be interesting to see how Symbian’s platform fares in the wild.

WritedownCom

Congratulations to Chapter 11 dweller WorldCom in setting a new US record – ‘Biggest write-off in US business history’. Their balance sheet is now $80bn lighter. This perhaps reflects the general drop in value of telcos since the ‘heady nineties’.

Storm in a coffee cup

The private battle between Microsoft and Sun Microsystems over the latter’s Java programming languages rages on. Microsoft is keen to starve the platform independent (ie. not locked to Windows) developers’ tool of oxygen. To that end it has excluded the Java Runtime Environment (JRE) from its XP operating system. Sun has played the antitrust card and is looking for $1bn in damages. It has successfully obtained an injunction against Microsoft forcing it to include the JRE. Unsurprisingly MS is appealing and suggests that the Court waits to see if Sun will be materially affected by the current arrangement before an injunction is served. Sun not unreasonably suggests that by that point the damage will be irreparable and thus the injunction needs to be immediate. Microsoft does not need to win this case. It simply needs to draw it out long enough to raise a question mark over Java’s future.

CIO – More for less

Research firm Gartner concludes that CIOs are under unprecedented pressure to achieve more with less. They propose that key areas for CIO attention are  - building credibility, configuring a business/IT partnership, synchronising IT-enabled business investments.  And to do all of this with IT budgets that are likely to remain flat in 2003.

Big Mac – Now with Intel inside

Fast-food burger house MacDonald’s is offering wireless Internet access in ten of its New York outlets. The first hour comes free with a combination meal. Subsequent hours are charged at $3. Intel is providing the wi-fi wireless hotspot technology. This coincides with the launch of Intel’s Centrino wireless notebook chip, by which I mean the processor, not the Big Mac accessory.

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