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politics

IBM's new antitrust muddle

European regulators are looking into whether IBM is unfairly dominating the mainframe market. What, is this 1968? IBM's purchase of Platform Solutions, a 36-person rival which made cheaper versions of IBM's mainframes, would normally be too small to rouse antitrust inquiries. But, amid accusations that IBM bought the firm to quash a rival, regulators are looking into it nonetheless. I'm actually disinclined to believe the conspiracy theories. IBM, under official antitrust oversight for decades, surely doesn't want to invite government officials back in. More »

your privacy is an illusion

IBM employee directory mocks your company's lameness

Tech companies like to babble about openness and transparency. But try finding an engineer's phone number. Standard procedure is to hide company telephone and email directories from external eyeballs, lest a recruiter — or, more annoyingly, a reporter — use the phone list to cold-call staffers. One shining exception: IBM, the world's largest IT employer, with nearly 400,000 people on board in at least 90 countries. Why would the company publish its entire directory and risk attack from headhunters and snoops? Because in 2008 IBM doesn't sell servers, it leases brains. Customers don't want to submit a request to a faceless feedback form and hope the right person at the world's biggest, sprawlingest tech company sees it. I'm sure there was a fight over the decision. But they finally faced the truth: We already hunt their employees down on Blogger and LinkedIn.

100-word version

Bill Gates's relevance -- and irrelevance

The Economist tidily sums up billg's career this week, now that Microsoft's Rain Man (see video) has walked away from the company after 33 years. I've whittled the piece down to its talking points. More »

copyfight

Google, HP and others form League of Extraordinary Patent Holders

Tired of fielding lawsuits from patent trolls and scared of court injunctions like that faced by RIM which nearly shut down the company's BlackBerry service, Google, Hewlett-Packard, Cisco, Verizon and Ericsson are among the companies rumored to be behind the formation of the Allied Security Trust. Ponying up $250,000 down payments and $5 million in escrow to make purchases, the trust seeks to buy patents before they fall into the hands of patent trolls. (That's the polite name the group's founders use for companies which seek to make money litigating infringers rather than by create products.) But the real bogeyman here is the rise of a possible patent troll to rule all patent trolls, Intellectual Ventures, which has close ties to Microsoft. More »

quotable

Bill Gates looks back at the competition Microsoft annihilated

Putting media naysayers in their place, Microsoft co-founder Bill Gates continued his farewell tour by pointing to old press accounts of companies like Ashton Tate and Lotus as worthy competitors into the perspective only the ultimate winner can enjoy. When asked by CNET's Ina Fried about the early presumptions that IBM would eat Microsoft's lunch and how that turned out, Gates used the opportunity to challenge those who would similarly presume that Google will eventually destroy Team Redmond. More »

history lesson

Interview with Konrad Zuse, inventor of first functional computer

In the 1930s, Konrad Zuse, a German scientist, invented the first functional computing device, an electromechanical beast that used relays as logic gates. In this interview from The Machine That Changed the World, a 1992 documentary digitized and posted by Upcoming founder Andy Baio at Waxy.org, Zuse spoke about his role in history. More »

acquisitions

HP moving to acquire EDS in $12 billion-plus deal

The Wall Street Journal is reporting that Hewlett-Packard is nearing a deal to buy EDS for $12 billion to $13 billion. Having set Dell back on its heels in PC sales, HP is now moving to challenge IBM. As computers become commodities, the money is in installing and maintaining them, not marking up Intel's microprocessors and Microsoft's operating system for a thin margin. One wonders if Michael Dell is gutsy enough to launch a rival bid — or, with HP now worth three times as much as Dell, if he can really afford to.

politics

White House used Microsoft software to flout email-archiving law

At last, an explanation of the Bush Administration's misbehavior that will resonate in Silicon Valley: It's all Microsoft's fault. Ars Technica details how switching from an IBM Lotus email system installed under Clinton to a Microsoft Exchange server made it impossible to store White House emails systematically. The archiving system was operated manually, and Bush appointees nixed efforts to upgrade it. CIO Theresa Payton says that the White House is now working on a new system, but knowing the ways of both Washington and enterprise software, what are the chances it will be done before we have a new president?

IBM researcher plugs house into Twitter for energy usage updates It's only a matter of time before the inanimate home of inventor Andy Stanford-Clark somehow pisses off TechCrunch publisher Michael Arrington and feels the wrath of "@andy_house blocked." [Earth2Tech]

IBM dividends up, American jobs down Big Blue raised the company's dividend 25 percent to $0.50 per share, as union employees and retirees picked outside headquarters to protest outsourcing and pension problems. [AP]

patents

Now we can relax: IBM files patents to fight the apocalypse

Worried about the next "episode of profound chaos" headed our way? Don't be! Your friendly International Business Machines Corporation is on the job. In 2006, IBM filed a patent for "computer usable program code" designed to optimize skills and resources during "episodes of profound chaos during hurricanes, earthquakes, tidal waves, solar flares, flooding, terrorism, war, and pandemics to name a few." As "human beings," IBM explains, we are "generally very ill prepared at a mental level for planning for and dealing with chaotic events." Which is true, but can we call it off if the program starts to get too good at chess?.

IBM's board authorized $15 billion in additional stock buybacks for 2008 and raised its future outlook. The company spent $18.8 billion on buybacks last year and has repurchased $94 billion in the past 13 years. Why, that's two Yahoos! [AP]


hardware

Smaller chip mean a cheaper PS3 -- and a comeback for Sony

Gadget battles are won and lost on the price of components. In that regard, Sony has had poor luck with its latest PlayStation console. Its hulking size, exorbitant price, and dearth of interesting titles left it vulnerable to the Wii's unexpected rise. Gamers were more interested in the Wii's casual fun than the PS3's sophisticated Cell processor, especially since the available games hardly made much use of the expensive piece of gear. But the Cell is about to get cheaper. Manufacturer IBM has reduced the size of the chip to 45 nanometers, a technological leap which will at once make the processor cheaper and easier to cool, requiring a smaller case. Good news, at long last, for Sony.

second life

IBM ad mocks IBM strategy


A new IBM TV ad mocks the make-a-wish economics of virtual-world purveyors like Linden Lab. Perhaps Big Blue's ad agency didn't get the memo: In India, IBM is expanding its ranks of Second Life salespeople.

ibm

IBM cuts 7,600 employees' salaries by 15 percent

International bullshit machine src=IBM tech-support workers believe they are eligible for overtime pay. And IBM agrees. It's just going to cut their salary by 15 percent to make up for it. After hearing the news, "I was so angry I could hardly speak, and it takes a lot to make me angry," one IBM employee told the AP. "I just don't know how IBM expects us to take this and just run with it." Here's my guess: They don't. If any of the 7,600 employees affected leave, it might just help IBM hike its recently raised 2008 earnings outlook even more.

IBM reported strong preliminary fourth-quarter results that sent the technology company's shares sharply higher. IBM said earnings from continuing operations were $2.80 a share, up 24 percent from $2.26 a year earlier, while revenue rose 10 percent to $28.9 billion. Overseas sales helped results beat analysts' estimates. [WSJ]

intel

New York investigates Intel for bullying

The state of New York is launching its own investigation into Intel's anticompetitive behavior, adding to a list including the European Commission and Korea, all egged on by chipmaking rival AMD. It's only natural for New York attorney general Andrew Cuomo to want in on the action. The accusations are similar to other investigations: penalizing computer makers who purchase non-Intel chips, improperly signing exclusive contracts, and cutting off competitors' access to distribution channels. In other words, conducting business a bit too effectively for rivals' tastes. Note that IBM's main chip-assembly plant is based in New York.