News and Analysis to 21st June 2006
Google spreads
Google is step-by-step dismantling the pillars that
support Microsoft’s business model. But it has to some extent shown reverence
to the world’s number one by keeping to its side of the market fence. This was
highlighted when it chose not to make Sun’s OpenOffice part of its product
suite. But now it has revved up the tractor and has crashed through the
boundary with news that it plans to offer a low cost alternative to Excel. The
spreadsheet technology is supplied by recent acquisition 2Web Technologies.
Keep in mind that Google recently acquired Upstartle, which now gives Google
online word processing capability. This attack on one of Microsoft’s key
revenue sources is unlikely to go without retaliation. But watch IBM.
Ground control to major revenues
High flyer Aircell confirmed that it has won the exclusive
rights to the air-to-ground spectrum in the US, which will enable it to provide
wireless broadband access to air travellers. This looks like a multi-billion
dollar market. But perhaps they haven’t done their homework. Have they not
heard that wireless technologies interfere with plane equipment? Aircell will
need to budget for providing agents on every flight to correct the flight
attendants. Or have we been lied to in respect of the dangers wireless poses to
air travel (much like at petrol stations)? The flight attendants will continue
to provide a worthwhile service if they warn passengers about the potential
danger of wireless to their wallets if used whilst air bound.
IP is a problem for Vonage
Recently floated Internet telephony (Voice over IP)
provider Vonage can now add Verizon to its list of lawsuit filers. Like many of
the other claimants, Verizon believes some of its patents have been infringed.
This is something of a nightmare for Vonage. Its share price has dropped 50%
since the IPO. Internet telephony is a major threat to the network operators,
so it is no surprise that Vonage is getting a rough ride. Possibly an objective
of some of the filers is to deter other VoIP players from entering the market.
Microsoft 2.0
As if to herald the dawning of a new era, Bill Gates has
announced his intention to step down from his role as chief software architect.
His replacement will be chief technology officer Ray Ozzie who came bundled
with Groove Networks, a recentish Microsoft acquisition. Ozzie apparently gets
‘web services’, whereby application software is delivered via the web as a
service, rather than being purchased and then installed on one’s computers.
Bill will stick around for another two years in his current role, and intends
to remain in the role of chairman forever.
IT just doesn’t deliver
According to a recent study presented by the Business
Performance Management Forum and WebMethods, a supplier of business integration
services, IT departments are broken and cannot keep up with the changes
required by modern businesses. This is of course a cause for concern, but not
new news. Many of the 320 business executives surveyed recognised that IT was
core to their business. I guess it just hasn’t occurred to them to take
responsibility for it.
As you sow…
Erstwhile tech sector rampager and software vendor,
Computer Associates, is looking a shadow of its formal voracious self. It was
something of a force of nature, acquiring circa 50 companies in just over a
decade. That culminated in ex CEO Sanjay Kumar being convicted in April of
securities fraud, amongst other things. CA is certainly developing expertise in
leaving parties. This year alone the COO, CTO, CFO and VP world wide sales have
departed. The share price is down 25% since the start of the year. In a twist
of irony, CA might find that it becomes the prey rather than the predator.
