Sunday, April 13, 2008

IPhone has hurt Palm, BlackBerry

Palm is facing deep challenges to compete with Apple's iPhone, while Research In Motion's BlackBerry also seems set to lose market share to the device, at least in the consumer market, an analyst reports
Needham & Co. analyst Charles Wolf has commenced coverage of Palm and RIM, and notes both companies face challenges as iPhone wins hearts and minds in the consumer and enterprise markets.

Palm faces the deepest challenge. Wolf warns the company has "lost its way". The lack of a new OS release in five years means the company is increasingly reliant on in-development products to regain its lost market lead.

"Neither is likely to be introduced until late in the year. Even then, it's an open question whether they'll be successful. We're initiating coverage with an under perform rating," Needham & Co. said.

Wolf also believes that Apple's iPhone may take market share from both competing firms once it introduces new enterprise-friendly features in June. RIM will see some impact in its core enterprise markets, while the expected diversity of third-party iPhone applications will hammer Palm's place in the consumer market.

"We believe BlackBerry's supercharged growth in this [consumer] market could slow materially when far more versatile applications developed for the iPhone begin to appear in the second half of the year," Wolf warned.

The analyst does note that this triptych of smartphone developers still hold a great lead on most competitors, because other firms (such as Motorola or Samsung) are tied to Microsoft's Windows Mobile system, which Needham & Co. calls "a non-starter in the consumer world".

The introduction of Google's Android platform for mobile phones may change the game once again, the analyst said, as it will offer a more extendible base OS than Windows Mobile to competing firms.

Despite it all, Wolf notes that Apple changed the smartphone industry when it chose to launch iPhone, describing the market as "totally disrupted" by the product's introduction.

"The iPhone is a game changer, weaving together a wide array of computer-like functions," he explained. "Given the choice between a BlackBerry and iPhone, we believe a material percentage of consumers will opt for the iPhone once exciting applications for the phone begin to proliferate in the second half of the year. BlackBerry sales should continue to grow but at a materially slower rate than they would have in the absence of the iPhone."

Research In Motion's market leadership is based entirely on the incompetence of the competition, the analyst also said: "RIM's competitors until quite recently were simply inept. Their failure stemmed less from their ability to design sleek phones than in their choice of an operating system on which to run them," he explained.

The analyst rates Palm shares as under-perform, while RIM takes a hold rating pending the effects of June's release of iPhone Software 2.0.

Opera previews mobile browser for Google Android

Opera on Thursday added Google's Android to the list of platforms that can run its mobile browser.
Opera released a technical preview of its Opera Mini browser for Google's mobile OS and middleware on its Web site, the company said Thursday. The company also released a software development kit for the platform.

Developers can test the browser and share feedback about it that will be considered before Opera releases a beta version, which it will do once it collects feedback from the community.

In a company blog posting, Opera's Developer Relationship Manager Chris Mills explained why the company decided to create a version of its mobile browser for Android and the particulars and challenges of writing the code.

According to the post, Opera considered the "cool factor" in providing a browser for Google's much-ballyhooed mobile platform, but also wanted to give users and developers the broadest possible choice for deploying its browser.

Because Android is so new and there is not yet hardware available for it, however, Opera developers ran into some challenges in creating the software, he said.

Mills said that because the platform is comprised of "a very fresh set of APIs," there is not much information available on the Web about it, and the community, while helpful, is still in its nascent stage of developing. "Sometimes it is difficult to find an answer if something during development is not going very well and you have questions," he wrote.

Not having access to hardware that will run the platform makes it "impossible to say how fast Opera Mini will run on real devices," Mills added.

Google introduced Android last November; it includes a mobile OS, middleware and applications for mobile devices. So far HTC, Motorola, Samsung and LG are among handset providers that have committed to building devices for Android, and Sprint Nextel, T-Mobile and AT&T are among the carriers who will offer service on Android handsets.

According to Opera, more than 40 million people use Opera Mini. Other mobile platforms that can run the browser include Symbian OS, Windows Mobile, Palm OS, BlackBerry OS, Samsung's SHP and Motorola's P2K.

IBM to buy FilesX for data protection software

IBM has signed an agreement to buy FilesX, a storage software company in Haifa, Israel, and Newton, Massachusetts, it announced Thursday. Terms of the deal, which IBM said will close shortly, were not disclosed.
FilesX's technology centers on continuous data protection and "nearly instant" data and application recovery for enterprises and branch offices running Windows environments.

Following the sale's close, FilesX's software will become part of IBM's Tivoli Storage Manager product line and be complementary to Tivoli Continuous Data Protection for Files, which IBM aims at SMBs and individuals, IBM said.

The acquisition will "reinforce IBM's mid-market strategy by adding a simple and easy to use full data protection solution -- one that also is attractive to enterprise remote offices and departmental situations," said Al Zollar, general manager of Tivoli software, in a statement.

The purchase also appears to tie into IBM's ongoing Information on Demand push, which has seen the company pull together a flock of data management, access and analysis software in part through a relentless series of acquisitions.

FilesX has more than 100 customers in the U.S. and Israel, according to IBM.

When roses won't do, e-mail a fragrance with NTT

After satisfying the senses of sight and sound through video streams and music downloads, NTT Communications aims to tap into the sense of smell with a new system that allows users to send fragrances from their cell phones.

When roses won't do, e-mail a fragrance with NTT
ITworld 4/10/08

Martyn Williams and Chiara CastaƱeda, IDG News Service

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After satisfying the senses of sight and sound through video streams and music downloads, NTT Communications aims to tap into the sense of smell with a new system that allows users to send fragrances from their cell phones.



A trial of the service will take place later this month during which users will be able to select and send certain fragrance recipes to an in-home unit that is responsible for concocting and releasing the various fragrances. Each holds 16 cartridges of base fragrances or essences that are mixed to produce the various scents in a similar way that a printer mixes inks to produce other colors.

Transforming the mood of room with a new scent is quite easy with this technology.

The first step is to choose a scent from the multitude of fragrance recipes available through an I-mode site on a cell phone. Once chosen the instructions on how to make the scent are then transmitted to the fragrance device through infrared from the phone, and from there the scent is quickly mixed and emitted.
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If distance is an issue, the other option is to send the instructions to the device via an e-mail message. The message is intercepted by a home gateway unit that is latched to the home’s broadband connection and sends the instructions to the fragrance device at home. Using this method users can set the time and date of fragrance emission, so one can come home to the relaxing scent of lavender, for example.

There's even room for creating customized scents, which can be shared with other users through the fragrance "playlist" on the Web site.

The technology is not only limited to creating a pleasant-smelling workplace or home. NTT also sees it as a way to enhance multimedia content. For example, instead of just sending an image of a bouquet of roses to a friend, one can boost the experience by sending the fragrance as well.

NTT hopes the fragrance emitter will cost about ¥20,000 (US$195) when eventually launched commercially. Cartridge refills should cost about ¥1,600 it said.

NTT Communications believes that fragrance is the next important medium for telecommunications, as more value is placed on high sensory information. Through a company sponsored Internet survey, NTT found that 56 percent of people polled use aromatherapy or believe that it has positive benefits.

"Aromatherapy can reduce stress and help you relax, and to be able to control smell implies one has the power to manipulate feelings as well," said Akira Sakaino, from NTT Communications' Net Business Division.

NTT has been developing this technology, which it calls "kaori tsushin," since 2004, and has collaborated with various outfits to test the service.

Applications have ranged from fragrance rooms in hotels in Tokyo and Osaka to aroma advertising through digital signage, where fragrances were made to match audio-visual content, located in pubs, parking lots and railway stations around Tokyo.

The fragrance communication mobile service test will take place from April 10 to 20 and involves 20 monitors who are tasked to give feedback on the service.
Martyn Williams is Tokyo bureau chief for the IDG News Service.
If distance is an issue, the other option is to send the instructions to the device via an e-mail message. The message is intercepted by a home gateway unit that is latched to the home’s broadband connection and sends the instructions to the fragrance device at home. Using this method users can set the time and date of fragrance emission, so one can come home to the relaxing scent of lavender, for example.

There's even room for creating customized scents, which can be shared with other users through the fragrance "playlist" on the Web site.

The technology is not only limited to creating a pleasant-smelling workplace or home. NTT also sees it as a way to enhance multimedia content. For example, instead of just sending an image of a bouquet of roses to a friend, one can boost the experience by sending the fragrance as well.

NTT hopes the fragrance emitter will cost about ¥20,000 (US$195) when eventually launched commercially. Cartridge refills should cost about ¥1,600 it said.

NTT Communications believes that fragrance is the next important medium for telecommunications, as more value is placed on high sensory information. Through a company sponsored Internet survey, NTT found that 56 percent of people polled use aromatherapy or believe that it has positive benefits.

"Aromatherapy can reduce stress and help you relax, and to be able to control smell implies one has the power to manipulate feelings as well," said Akira Sakaino, from NTT Communications' Net Business Division.

NTT has been developing this technology, which it calls "kaori tsushin," since 2004, and has collaborated with various outfits to test the service.

Applications have ranged from fragrance rooms in hotels in Tokyo and Osaka to aroma advertising through digital signage, where fragrances were made to match audio-visual content, located in pubs, parking lots and railway stations around Tokyo.

The fragrance communication mobile service test will take place from April 10 to 20 and involves 20 monitors who are tasked to give feedback on the service.

Yahoo to test Google search ads

Yahoo will test displaying Google search ads in a small number of its search engine queries, a move likely to be interpreted as the latest in a series of Yahoo maneuvers to resist Microsoft's acquisition attempt.
The test, expected to last up to two weeks and be limited to up to 3 percent of Yahoo search queries in the U.S., is specifically for Google's AdSense for Search service. In other words, Yahoo would be acting as one of the Web publishers that carry pay-per-click text ads from Google. The ads will appear only in Yahoo.com.

Yahoo noted that "the testing does not necessarily mean that Yahoo will join the AdSense for Search program or that any further commercial relationship with Google will result." Yahoo will not comment on the nature or timing of any potential relationship with Google.

Microsoft, whose acquisition offer was rejected by Yahoo's board in February, on Saturday said it will launch a proxy fight to attempt a hostile takeover if Yahoo doesn't agree to the acquisition in the next three weeks.

On Wednesday, Microsoft blasted the Google-Yahoo announcement, saying that a broad outsourcing deal would inevitably run into regulatory trouble because it would give Google more than 90 percent of the search advertising market.

"This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo. We will assess closely all of our options," said Brad Smith, Microsoft’s general counsel, in a statement.

"Our proposal remains the only alternative put forward that offers Yahoo shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers," Smith said.

Google has a share of between 70 percent and 75 percent of U.S. search ad spending, and Yahoo has about 15 percent, said Karsten Weide, an IDC analyst. If Yahoo fully outsourced its search ads, Google would have a monopoly in this segment of the market, but such a deal wouldn't give Google a monopoly on overall ad spending, he said.

With Yahoo's search business, Google's share of the U.S. online ad spending would have been around 36 percent in 2007's fourth quarter, Weide said. This could be an argument against antitrust concerns, along with the fact that Yahoo would likely get most of the money per click, and that while Google rules search advertising, it is a minor player in other online ad segments, like display ads such as banners, he said. Still, it's clear that a search ad outsourcing deal would attract a lot of regulatory attention.

Beyond the regulatory issue, this deal wouldn't be good for Yahoo in its attempts to compete broadly against Google, he said. Yahoo should have its own search ad business, Weide said.

"The question is: Is this real? Is Yahoo seriously considering replacing [its search ad system] with Google's?" Weide said. "Or is Yahoo doing this merely to annoy Microsoft and drive Microsoft away from its acquisition attempt? It's not clear."

Eric Goldman, assistant professor at the Santa Clara University School of Law, points out that the potential outsourcing deal again brings up the often-discussed issue of how to delineate the relevant online ad market that would be impacted. Should the regulatory bodies narrow their focus to the online search ad segment, expand it to the overall online ad market, or open it up widely by considering the ad market in general, including radio, TV, print and the like?

"I'm torn about this," said Goldman, who is also director of the university's High Tech Law Institute. While Google leads in search advertising, there are plenty of opportunities for competitors to come up with a system that puts Google's dominance at risk by offering ad targeting that gives advertisers a better return on investment, he said. On the other hand, scale is also key, and Google has a massive distribution network, which it can use to trump competitors that offer better ROI results, Goldman said.

The announcement was first reported Wednesday afternoon by The Wall Street Journal, quoting anonymous sources. A broader agreement to outsource its search ads to Google could let Yahoo increase its cash flow, because Google ads generate more revenue per search, the Journal reported, referring to a consensus belief among financial analysts and Yahoo investors.

Since Feb. 1, when Microsoft made its US$44.6 billion offer, Yahoo's CEO Jerry Yang and the members of Yahoo's board have been reportedly trying to come up with an alternative deal. In addition to this Google plan, Yahoo has also held discussions with AOL, News Corp. and Disney, according to various reports in the past two months.

Should Yahoo enter into this deal with Google, it would be an acknowledgement that it has failed to attain its goals in search advertising, despite numerous efforts, including a significant upgrade of its system called Panama.

It's not clear what would happen to Yahoo's search marketing division, which runs the company's search advertising, in the event that Yahoo outsourced this business to Google. For Microsoft, it clearly wouldn't be palatable to have an agreement of this sort bundled in with its acquisition of Yahoo.

Google reiterated Yahoo's announcement, saying the deal is a limited test and doesn't necessarily mean that Yahoo will join the AdSense for Search service.

Europe rejects plan to criminalize file-sharing

The European Parliament rejected attempts to criminalize the sharing of files by private individuals, and threw out the idea of banning copyright abusers from the Internet, in a plenary vote Thursday.
The vote was close, with 314 Members of the European Parliament (MEPs) voting in favor of an amendment to scrap what many consider draconian and disproportionate measures to protect copyright over the internet, and 297 voting against the amendment.

"The vote shows that MEPs want to strike a balance between the interests of rights holders and those of consumers, and that big measures like cutting off Internet access shouldn't be used," said Malene Folke Chaucheprat, a European Parliament spokeswoman, shortly after the vote.

The report isn't legally binding, but it could help thwart efforts by France, which has already adopted such measures, to push the issue at a European political level.

France's so-called Oliviennes strategy to combat copyright abuse includes a "three strikes and you are out" approach: offenders lose the right to an Internet account after being caught sharing copyright-protected music over the Internet for a third time.

France takes over the six-month rotating presidency of the European Union in the second half of this year and many observers, including the U.K.-based Open Rights Group, expect it to push for E.U.-wide rules similar to its own.

The report is significant because it "signifies resistance among MEPs to measures currently being implemented in France to disconnect suspected illicit filesharers," the Open Rights Group said in a statement.

The record industry was disappointed with the vote. "One badly drafted, rushed through amendment was adopted which is in contradiction to the rest of the text," said Frances Moore, executive vice president of the International Federation of the Phonographic Industry (IFPI), in a statement.

"If the aim of the report is to protect creative content, including in the online environment, we should be looking at all options available in the fight against copyright theft. Instead, this amendment suggested discarding certain options before there is even a proper debate," the IFPI said.

But the Open Rights Group argued that criminalizing copyright abuse by individuals eager to build their media library and not profit from copyright-protected material is draconian and inefficient at tackling illegal file sharing.

"As the European Parliament have recognized today, [the measures] are disproportionate, they lack consumer safeguards and they won't stop illicit filesharing," the Open Rights Group said.

Fujitsu to monitor data center heat with optical fiber

Fujitsu is looking to optical fiber to help increase efficiency in the cooling of large data centers. The company has developed a prototype monitoring system that can measure the temperature in up to 10,000 points using a single optical fiber connected to a measuring device.
It works by sending pulses of light down the fiber, which is laid around the data center and through the server racks, and measuring the minute amount of light that is sent back down the line due to Raman scattering, said Fumio Takei, a research fellow at Fujitsu who has been working in the system.

The intensity of the light varies depending on the temperature so this can be used to estimate the temperature along the fiber while the time it takes to come back can be used to measure the distance from the start of the fiber. Combining the two together means that the temperature can be estimated at numerous points along the fiber.

The basic idea isn't new and fiber optic cables have been used for some time to monitor the temperature of things like tunnels, but the resolution of the system has never been precise enough to be useful in a data center, said Ei Yano, president of Fujitsu's device and materials laboratory.

The Fujitsu system is accurate to within half a degree Celsius and one meter. The temperature range that can be measured is between -10 degrees and 300 degrees Celsius.

In a demonstration at the company's research and development laboratory here near Tokyo a fiber was strung around a small server room and displays showed temperature read-outs for each rack starting at 32.4 degrees at the bottom of the rack and rising steadily -- 33.9, 34.1, 34.4 and 35.9 -- to 37.8 degrees at the top.

Fujitsu said the system can be used with fiber optic cables up to 10 kilometers long and at one-meter resolution that means approximately 10,000 points can be measured.

The company hopes to commercialize the system sometime in 2009. There is no word on price but Yano said such a system isn't likely to be cheap but comparably good value for a 10,000-point measurement system.

As computers get more powerful the amount of heat generated by them is increasing making datacenter cooling an increasingly difficult job. The new technology should be able to help better employ cooling systems so hot areas are more efficiently cooled and less power wasted.

An added benefit is that the system relies solely on light and not electrical measurements so stringing the cable close to servers won't cause interference.