Thursday, September 25, 2008

Intel WiMax to go live, will devices follow


Intel and Sprint Nextel will team up to launch the first WiMax network in Baltimore on October 8--what the chipmaker is calling the dawn of 4G broadband because of its high speed.

Sprint will likely announce the rollout next week at WiMax World in Chicago, according to sources familiar with the plans. Sprint's WiMax-based broadband service, called XOHM, is scheduled to go live by the end of this month, according to those sources. (They say the XOHM Baltimore network is actually up now and is being used by company employees.)

Initially, as part of the rollout, a WiMax card for laptops based on the PC Express standard will be offered by Samsung, Sprint said.

Monday, September 22, 2008

Microsoft announces $40 billion buyback stock

Microsoft on Monday announced a new stock buyback program of up to $40 billion, sending its stock up more than 5 percent in premarket trading.

The software giant said it would repurchase up to $40 billion worth of its shares through September 2013. It recently completed a previous $40 billion buyback program.

The Redmond, Wash.-based company, meanwhile, also announced plans to pay a 13-cent quarterly dividend, which is an 18 percent increase over its previous quarterly dividend. The dividend will be payable on December 11 to shareholders of record as of November 20.

In addition to the stock buyback program and increased quarterly dividend, Microsoft is also planning to float out corporate debt of up to $6 billion. The proceeds from the debt offerings will be used for general corporate purposes, stock repurchases, and working capital.

Kuwait orders block YouTube


The Kuwait Ministry of Communication has issued a memo to all internet service providers in the state to block access to the popular video sharing website YouTube.com

YouTube is popular in Kuwait with a search on the word ‘Kuwait’ generating 59,000 video results.

The Ministry of Communication issues memos regularly to ISPs to block certain websites that contain pornographic content or offer VoIP services such as Skype.

Saturday, September 20, 2008

Helping New Technologies Grow Into Businesses, the San Diego Way

SO far, San Diego remains a fertile breeding ground for entrepreneurs, despite the problems in the broader economy.

Connect, a nonprofit organization led by Duane Roth, right, helped husband and wife Rolf Muller and Judy Muller-Cohn obtain a $1 million investment to start Biomatrica, their business.

That is due in large part to a nonprofit organization, Connect, that was created 23 years ago to bring together people knowledgeable about business and investment capital with researchers at the universities and research institutes in San Diego.

“In 2007, we helped 54 companies start up, and there are 150 in the queue,” said Duane Roth, chief executive of Connect.

Connect is neither a business nor a philanthropy. It offers prospective biotechnology, telecommunications, computer software and electronics companies advice and programs that introduce them to investment and venture capital firms. It does not charge for those services, but it relies on contributions from 200 members, among them business, legal and financial people, as well as the directors of research institutes in the San Diego area like the Scripps Research Institute, the Salk Institute for Biological Studies and the Burnham Institute for Medical Research.

This idea of combining scientific potential and financial heft was the brainchild of the founders of the Qualcomm Corporation, which became a telecommunications giant; Hybritech, a pioneering firm in biotechnology that is now owned by Eli Lilly; and Richard Atkinson, the president of the University of California, San Diego. In 1985, they formed Connect as an extension of the university to turn faculty ideas into commercial products. Connect did just that under the leadership of William Otterson, a computer executive who built the organization over 13 years, despite his long struggle with cancer, which ultimately took his life at age 69 in 1999.

“Bill Otterson created the culture here, telling scientists and research people to share ideas and then compete in the marketplace,” said Mr. Roth, a pharmaceutical industry entrepreneur who took Connect’s reins in 2004. Today, he says of San Diego, “We have a chance to become the premier region in the country for innovation.”

Rolf Muller, a founder and chief scientific officer of Biomatrica Inc., is one of the people Connect has helped. Mr. Muller and his wife, Judy Muller-Cohn, chief executive of Biomatrica, are molecular biologists. They met at Oregon State University, married, went to Paris to earn doctorates at the Pasteur Institute and came to San Diego 14 years ago to work in bioscientific research.

As Mr. Muller recounts it, some of their work involved storing samples of genetic DNA and RNA, which requires preserving cell structures in freezers capable of extremely low temperatures.

“For 80 years, we have stored tissue samples and cellular structures in freezers. The costs are huge — $60,000 a year at least for each freezer, and 500 university laboratories have hundreds of freezers to store 10,000 samples a week,” Mr. Muller said.

The Mullers were studying small animals called tardigrades that exist in extreme environments, like the Sahara desert. Tardigrades can suspend their metabolism by dehydrating themselves and living in such a state for as long as 10 years.

“They dry up completely but come back to life when you put them in water,” Mr. Muller explained. So, he said, he and his wife got to thinking: what if such a state could be duplicated technologically in a simple plastic matrix in which shrink-wrapped molecules are stored at room temperature, eliminating the need for freezers?

Four years ago, they decided to give their idea a try. Mr. Muller kept his job at the Salk Institute for Biological Studies “to support our four children” while Judy Muller-Cohn left her job at a biotechnology firm to work at their new company. “We mortgaged the house, took the college money out of savings and threw it all in,” Mr. Muller said in a recent interview at Biomatrica’s headquarters while Mrs. Muller-Cohn was traveling.

Connect “was a huge help because scientists need help from people who know something about business,” Mr. Muller said. Connect helped Biomatrica get a $1 million investment from an angel investor and then advised the company on securing technical partners in molecular diagnostics.

In 2006, Biomatrica presented its story to investors in what Connect calls its Springboard competition. “We were looking for $2 million, but before the competition was finished, we were oversubscribed,” Mr. Muller said.

Echoing the Campaign of a Rival, Microsoft Aims to Redefine ‘I’m a PC’

After a series of teaser ads, Microsoft is beginning in earnest an ad campaign to repair its image, including a spot with a diver in a shark cage.


RELAX, computer users, after only two weeks Microsoft will stop teasing you as the company begins the next phase of an ambitious — and risky — $300 million campaign intended to make over its tarnished image.


A Microsoft engineer resembling a character in Apple’s ads appears: “Hello, I’m a PC, and I’ve been made into a stereotype.”


The campaign, which begins Thursday and carries the theme “Windows. Life without walls,” will move away from the enigmatic teaser commercials that featured Bill Gates and Jerry Seinfeld in offbeat conversations about shopping, shoes, suburbia and the potential of computing to improve life. The teaser ads have generated considerable discussion since they started on Sept. 4, not all of it positive.

What follows is an audacious embrace of the disdainful label that Apple, Microsoft’s rival, has gleefully — and successfully — affixed onto users of Microsoft products: “I’m a PC.”

One new Microsoft commercial even begins with a company engineer who resembles John Hodgman, the comedian portraying the loser PC character in the Apple campaign. “Hello, I’m a PC,” the engineer says, echoing Mr. Hodgman’s recurring line, “and I’ve been made into a stereotype.”

The strategy to use the Apple attack as the basis for a counterstrike is typical for the agency behind the campaign, Crispin Porter & Bogusky.

Crispin Porter, part of MDC Partners, relishes efforts to transform perceived negatives into positives. For another client, Burger King, the calorie-stuffed menu is portrayed to a target audience of young men as a rebellious personal choice to “Have it your way.”

Mr. Gates makes a cameo appearance in the new Microsoft spots, along with celebrities like the actress Eva Longoria, the author Deepak Chopra and the singer Pharrell Williams. (Mr. Seinfeld is gone, at least for now.)

But the stars are everyday PC users, from scientists and fashion designers to shark hunters and teachers, all of whom affirm, in fast-paced, upbeat vignettes, their pride in using the computers that run on Microsoft operating systems and software.

Among them are more than 60 Microsoft employees, who are accompanied in the ads by e-mail addresses — even Mr. Gates’s (bill@windows.com).

Apple executives have been “using a lot of their money to de-position our brand and tell people what we stand for,” said David Webster, general manager for brand marketing at Microsoft in Redmond, Wash.

“They’ve made a caricature out of the PC,” he added, which was unacceptable because “you always want to own your own story.”

The campaign illustrates “a strong desire” among Microsoft managers “to take back that narrative,” Mr. Webster said, and “have a conversation about the real PC.”

A giant advertiser responding to the disparagement of a smaller rival can be fraught with peril. Consumers may see it as a validation of the claims, or even bullying. On the other hand, ignoring the taunts can damage images and sales.

In the car-rental wars, the market leader, Hertz, long kept silent about a cheeky Avis campaign that proclaimed: “We’re No. 2. We try harder.” But after Avis revenue grew robustly, Hertz shot back: “For years, Avis has been telling you Hertz is No. 1. Now we’re going to tell you why.”

Similarly, Coca-Cola said nothing as Pepsi-Cola challenged its hegemony in the cola category — until it turned tradition upside-down in 1985 by bringing out New Coke, with a more Pepsi-like taste. Roger A. Enrico, who was in charge of the PepsiCo beverage business, celebrated by co-writing a book titled “The Other Guy Blinked: How Pepsi Won the Cola Wars.”

Riffing on the Apple ads is “a smart way of changing the dialogue,” Mr. Webster said, “without taking them through the mud.”

Charles Rosen, chief executive at Amalgamated, an agency in New York that specializes in what he calls “cultural branding” for clients like Ben & Jerry’s ice cream, said it made sense for Microsoft to engage Apple.

Through its campaign, which mocks the PC as it celebrates the Macintosh, “Apple represents the ideology of Silicon Valley, taking on big business as in Microsoft,” Mr. Rosen said.

That gives Apple “badge value, identity value,” he added, among consumers who prize brands they deem populist.

Trying to gain more firepower for ads by generating talk in the popular culture is another tactic of Crispin Porter’s. For example, commercials for Volkswagen became the subject of considerable buzz because they showed something rarely depicted in auto advertising: sudden crashes.

That was what the two-week Microsoft teaser campaign accomplished, according to companies that track discussions about brands.

At first, “the ads were ambiguous and confounding to some,” said Ted Marzilli, senior vice president and general manager of the brand group at the New York office of YouGovPolimetrix, a research company, but as they continued they helped improve perceptions about Microsoft.

Oracle Shrugs Off Turmoil in the Financial Markets

Oracle shrugged off concerns Thursday that an imploding financial sector and slowing global economy would hamper technology spending while reporting financial results that cheered Wall Street analysts.
Monica M. Davey/European Pressphoto Agency

Safra A. Catz, Oracle’s president, and Lawrence J. Ellison, its chief, said results from its recent quarter were fine.

“It is a real nothing special quarter,” Safra A. Catz, Oracle’s president, said.

The business software maker closed large deals at usual rates during August, Ms. Catz said.

Given the concerns in a week in which financial giants tumbled, Oracle provided some reassurance. “Our exposure to banking customers is in the low-single digits,” Ms. Catz said. “Our exposure to U.S. banks is even lower.”

She said Oracle had assessed the amount of business it did with some of the troubled companies on Wall Street and did not think their issues had any material impact on sales.

Shares of Oracle rose 65 cents, to $18.75. They rose $1.15, or 6.1 percent, in after-hours trading.

Oracle reported net income for its first fiscal quarter, which ended Aug. 31, of $1.1 billion, or 21 cents a share, up 28 percent from $840 million a year ago. The results topped predictions by analysts polled by Thomson Reuters.

The company said revenue grew 18 percent to $5.3 billion from the year-ago quarter. Oracle’s new software license revenue — a crucial metric linked to the company’s health — rose 14 percent, to $1.2 billion, below the midrange of its forecast.

“I think the expectations were for a lot worse, and I think this is respectable,” said Brent Thill, a securities analyst at Citigroup.

Some of Oracle’s resilience cited by both analysts and company officials stemmed from its recurring license stream and numerous acquisitions.

“The results underscore our belief that the company is successful at cross-selling into recently acquired companies’ accounts and benefits from an expanded product footprint,” said Adam Holt, a software industry analyst with Morgan Stanley.

Despite management’s confidence, Oracle started to show that changes in the economy might affect future sales. “The dollar has strengthened enormously,” Ms. Catz said.

Oracle, which does extensive business overseas, has benefited from a weak dollar that makes overseas sales more competitive. It expects that benefit to vanish in the coming quarter.

Revenue is expected to increase 12 percent to 15 percent, assuming exchange rates stay where they are, Ms. Catz said. Oracle reported revenue of $5.3 billion in last year’s second quarter.

Oracle also expects new software license sales to grow 5 percent to 15 percent. New license revenue jumped 38 percent in the same quarter last year.

While Oracle’s flagship database software sold well, its business applications sales declined for the first time since the first quarter in fiscal 2005, said Mr. Thill of Citigroup.

“The quarter was good, but it wasn’t great,” Mr. Thill said. “The applications business is clearly showing some signs of weakness.”

Lawrence J. Ellison, Oracle’s chief executive, said that the company’s acquisitions helped it gain share for middleware, a layer of business software that communicates between databases and various software systems. Oracle closed its $8.5 billion purchase of BEA, one of the leading middleware players, in April. “We either passed I.B.M. or we are about to pass I.B.M. in the middleware business,” Mr. Ellison said.