News and Analysis to 23^rd September 2004

Microsoft Office open to government

Responding to the threat of cheaper open source software, Microsoft plans to share its source code with governments, planet-wide. The software giant’s concern is that the trend towards open source could spill over into education. This shared-source strategy is key to ensuring that next generation software purchasers are protected from exposure to non-Microsoft office productivity tools.

Fall in hactivity?

According to security software vendor Symantec, an estimated 40% of the world’s largest firms have had their IT infrastructure infiltrated by viruses and worms. Often these compromised systems are used as platforms to launch attacks against new targets. There is a worrying trend in respect of motivation. Idealistic (hactivism) or ‘playground kudos’ related attacks are making way for those inspired by financial gain.

People soft-landing

Oracle has been granted a green light by the US Department of Justice to pursue its acquisition of PeopleSoft. The former has expressed its intentions to sack the latter’s staff if successful. PeopleSoft is now busy packing ‘golden parachutes’ (and particularly large ones for its executives) that could cost Oracle up to $200m. This ‘bitter pill’ can be added to the extra $2bn PeopleSoft has put aside as compensation to its customers in the event of a takeover. Oracle may conclude that this prey is inedible.

Picture this!

Be careful next time you surf the web. By downloading pictures you could inadvertently provide a gateway that will enable unauthorised software to run on your computer.  Microsoft classifies the problem as critical and has issued a patch. Such a problem if not resolved will make web surfing a high-adrenalin sport.

Oracle gets more demanding

The ‘software as a service’ industry got another boost recently as Oracle took further steps to grow its ‘on demand’ business by acquiring a senior executive from HP. Given HP’s multi-focused strategy, it needs to be careful that it doesn’t accidentally venture into the ‘executives on demand’ market.

JP Morgan opts for IBM’s off demand service

The largest outsourcing deal in banking history is to be dismantled. The $5bn contract between JP Morgan and IBM appears to have collapsed as a result of the bank’s merger with Bank One, whose chairman will become the joint bank’s CEO. Unfortunately for IBM his hobbies and interests do not include outsourcing. NB. 4000 almost new blue suits will soon be available on eBay as a result of the IT staff being repatriated to their original employer.

Off shore vendors have some way to go

Outsourcing vendors have yet to reach a level of service whereby they can truly deliver a global service. Research firm Forrester has assessed the top players and discovered that none could provide a complete portfolio of offshore destinations. The emerging concept of Global Delivery Models (GDM) will become more important as clients’ requirements become more sophisticated. Forrester also recommended that Indian firms polish up their account management skills. Whilst western outfits need to convince their sales force to sell their outsourcing proposition.

Return to Sendo

After 2 years Microsoft and UK mobile phone vendor Sendo have finally resolved their differences. The software giant saw the Sendo phone as a useful vehicle for promoting its own Smartphone software and consequently took a stake in the company. Sendo accused Microsoft of using its intellectual property beyond the boundaries of their relationship. The settlement figure is unknown but Microsoft has relinquished its share in the phone maker, which has subsequently opted for Symbian’s Epoc operating system.

Hurricane Jordan

Michael Jordan CEO of EDS plans to shed 20,000 staff over the next two years. With a debt rating of ‘junk’ harsh action is required. Recruitment companies would be wise to lay on coaches to pick up ejected staff and to tell the drivers to head straight for CSC’s HR department, which will no doubt have erected ‘processing’ tents in the car park to cope with this sudden but most welcome influx.