Linux infosys software

Byline: Cynthia L. Webb

Computer giant IBM is pushing a new strategy of "on-demand" computing. The company is so bullish on the idea, it plans to invest $10 billion into the new initiative. IBM chief executive Sam Palmisano explained the concept in a speech in New York yesterday. On-demand computing, he said, will give corporate customers a way to purchase computer hardware and software much as they would electricity or other utilities: as they are used.

"No doubt about it, it is a bold bet. Is it a risky bet? I don't think so," Palmisano said, as quoted by The Washington Post. The plan is to hawk computer systems and services that can adapt to the demand and needs of the businesses that are buying them. The services will be able to react to spikes in usage or do self-repairs in emergencies. Big Blue is also starting a multi-million advertising campaign to push its new approach, which still has a New Economy official name of "e-business on demand." "What I.B.M. is doing is putting a big budget behind its effort and a label on it that will appeal to a business audience," Forrester Research analyst Frank Gillett told The New York Times. * The Washington Post: IBM's Plan: Computing On Demand * The New York Times: The New Leader of I.B.M. Explains His Strategic Course (Registration required)

The Wall Street Journal said insiders called the speech "Sam's Vision." Palmisano, who will take on the dual role of chairman and chief executive starting in January, told the newspaper that IBM would spend $2 billion to $3 billion a year in acquisitions. Money will also go to research, training and demo centers. As part of the company's new utility computing plan, IBM plans to boost the development of products that rely on open standards, including Linux OS and grid computing systems, which divvy up computer work to dormant PCs and servers.

Hewlett-Packard and others are also going after the grid computing strategy, so that's hardly a new concept. "We're already delivering this vision of the future. We call it planetary-scale computing," Nick van der Zweep , director of infrastructure solutions for HP told The Wall Street Journal. The San Jose Mercury News also points out that competition is already brisk in this area with other industry heavyweights: "Rivals Hewlett-Packard and Sun Microsystems share the same vision, albeit with their own software and hardware solutions. HP calls its technology the Utility Data Center, and Sun calls its solution N1. HP is expected to announce its second generation of UDC products Nov. 18, and Sun expects to roll out its N1 products over the next 18 months," the article states.

One analyst told CNET's News.com why IBM thinks it has the edge: "IBM is saying it's in the best position because it can do the whole thing, from business process integration ... down to autonomic computing," said Gartner 's Tom Bittman . * The Wall Street Journal: Big Blue's New CEO Says IBM Will Boost Acquisitions (Subscription required) * The San Jose Mercury News: IBM To Invest $10 Billion in 'On-Demand' Computing

A Different Per-Spectrum

Federal Communications Commission Chairman Michael Powell yesterday said he rejects the idea that there's not enough spectrum to go around for all the broadcasters and wireless providers who want them. The proof? The FCC ran test in five major U.S. cities recently and found many unused spectrum holes. "These results call into question the traditional assumptions about congestion," Powell said. "It appears that most of spectrum is not in use most of the time." * The Associated Press via The Boston Globe: FCC chairman Powell urges overhaul of radio airwave policy * The San Jose Mercury News: FCC Head Urges Airwave Changes

Dell Bites Into An Apple

In an odd pairing for the computer industry, Dell Computer Corp. yesterday started selling Apple 's iPod digital music player through its phone ordering system. Dell is reselling both 10-gigabyte and 20-gigabyte iPods, which can work with Microsoft's Windows operating system. Dell said it may also sell other iPod models too. Dell has been ramping up its partnerships, including a recent deal to sell Dell-branded printers from Lexmark . * The Wall Street Journal: Dell Computer Begins Selling Apple's iPod Music Players (Subscription required) * The Associated Press via The San Francisco Chronicle: Apple iPod Being Sold By Dell, Target

Gaming the Market

Japanese video game maker Nintendo was slapped with a $147 million fine by the European Commission . The EC said Nintendo colluded with seven European distributors to fix prices on its games and game consoles from 1991 to 1998. Distributors agreed not to sell products to buyers in other European cities, causing game consoles in Spain, for example, to cost three times more than in Britain, Germany or the Netherlands, according to The New York Times. Nintendo plans to appeal the size of the fine. * The New York Times: Europe Fines Nintendo $147 Million for Price Fixing (Registration required) * The Guardian: EU fines Nintendo pound sterling94M For Rip-Off

Paper Shredder, Please

A federal judge has OK'd the destruction of three million pages of documents related to a federal antitrust case that involved Microsoft and Utah technology company Caldera . In the suit, first filed in 1996, Caldera alleged that Microsoft used anti-competitive marketing and licensing tactics to thwart sales of Caldera's computer operating system, which competed against Microsoft's MS-DOS. The two companies settled the suit in January 2000 for an undisclosed sum, But recently the company changed its mind about keeping the more than 900 boxes of Microsoft evidence and asked the court for permission to destroy them or give them back to Microsoft or another relevant third party. * The Salt Lake City Tribune: Microsoft Evidence to Be Destroyed * O'Reilly Network (documents and background on Caldera v. Microsoft case): The Caldera v. Microsoft Dossier

Holy Computing

Hewlett-Packard has experienced some divine intervention, or at least a divine new project: H-P and the Holy See said they have posted online selected treasures from the Vatican's Apostolic Library, which dates back to 1451. The scanned items include ancient Bible texts, rare artwork and letters from Michelangelo and Martin Luther . The Internet collection gives a peek at items that had been in a collection that was only open to scholars and church officials. H-P provided technical consulting and donated hardware, computer servers and scanners to the project. The Vatican has been an H-P client for a decade. * The Los Angeles Times: Vatican-HP Project Makes for a Holy Site (Registration Required) * Bloomberg (via The Houston Chronicle): HP gives Vatican Library An Upgrade * The Vatican Library

Data-Treasure Island

India's second largest software exporter, Infosys Technologies , is investing $25 million to set up a "data" disaster recovery center on the island of Mauritius to manage client projects in the event of a major emergency. The Mauritanian IT minister announced the project at the Bangalore IT.com conference. * BBC Online: Mauritius Gets Infosys Disaster HQ * Infosys press release (PDF)

Sky Highway

NASA 's Small Aircraft Transportation System, or SATS, will be tested out soon at the Gainesville Regional Airport 's private aviation facilities. SATS is a computerized system that uses Global Positioning System technology to tell pilots where they should fly; it is designed to eventually replace the current air navigational system. "I know it sounds like something from an old issue of Popular Mechanics," Bob Van Riper , director of Flightline Gainesville , which manages the airport's private aviation facilities, told the Gainesville Sun. "It sounds like science fiction, but this is really just part of the natural progression of our transportation system." * The Gainesville Sun: Highways In the Sky * NASA SATS site

Wire-less Tapping

A group of computer techies and amateurs are mapping out wireless networks across the globe to find out if the networks are secure. The group's initial survey, called "Worldwide Wardrive," found that 70 percent of wireless networks don't even have built-in encryption systems activated, BBC News Online reports. Meanwhile, 27 percent have not changed the default name of their wireless components, which can make it easier for hackers to sign in and use the network. And according to the wireless mapping expedition survey, the majority of Wifi networks -- which link computers and peripherals with radio -- do not turn on the data scrambling system built into Wifi hardware. The second Wardrive survey us going on now in nine countries through Nov. 2, according to the article. * BBC News Online: State of the Wireless Nation * Worldwide Wardrive site

Dialing Math Class