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Merlou Gerzon and Merlie Neri
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Francis Cabas
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Marlon Melgazo
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Donna Ocampo
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Alan Almendras
SOMETIMES what appears to be a threat is actually a life preserver.
The poor defenseless music industry cowered - then prosecuted - when the monster of digital downloads came lurching over the horizon. Then the iPod came along and music looks like a business again - a smaller business, eked out in 99- cent units - but still a business.
Cable channels were supposed to gut network television, but instead have become a place where shows like "Seinfeld" and "Law and Order" are resold and rewatched. The movie industry reacted to DVD's as though they were a sign of the imminent apocalypse, and now studios are using their libraries to churn profits.
Which brings us to the last of the great analog technologies, the one many of you are using right now.
The newspaper business is in a horrible state. It's not that papers don't make money. They make plenty. But not many people, or at least not many on Wall Street, see a future in them. In an attempt to leave the forest of dead trees and reach the high plains of digital media, every paper in the country is struggling mightily to digitize its content with Web sites, blogs, video and podcasts.
And they are half right. Putting print on the grid is a necessity, because the grid is where America lives. But what the newspaper industry really needs is an iPod moment.
According to a nifty piece of polling, directed by Bob Papper of Ball State University in Muncie, Ind., and released last week, average Americans spend more time online, on the phone, punching the remote, the radio and the game console than they do sleeping - a total of nine hours a day. And much of the time, they are using more than one medium simultaneously, answering e-mail messages while returning calls with a TV buzzing in the background.
For all the print newspaper's elegance - it is a very portable, searchable technology - it has some drawbacks. A paper is a static product in a dynamic news age, and while every medium is after eyeballs, the industry has to take that quite literally. You cannot read this story while driving in your car - which is how most of America commutes - and you cannot have it on in the background. America is hooked on "companion" media, a pet platform that sits in the corner and pays attention to you when you pay attention to it.
No wonder that print is taking a hit. In the Ball State study, the Internet in all of its incarnations beat out reading print materials in all forms in every age bracket up to 65.
Print's anachronisms, whether it is the last-mile delivery, the slaying of forests, or the sale of thick packages that most consumers use only small slices of, make change inevitable once a better answer is available.
Consider if the line between the Web and print matter were erased by a device for data consumption, not data entry - all screen, no baggage - that was uplinked and updated constantly: a digital player for the eyes, with an iTunes-like array of content available at a ubiquitous volume and a low, digestible price.
Sure, there are tablet PC's and so-called viewpads out there, but they need to boot every time they are used - they are just computers without keyboards. The iPod was not a new kind of CD player, it was a new way of listening to music. And the dangling white headphones became something that brought joy to the ears and also cachet to the wearer.
"There are all sorts of devices coming along," said Dick Brass, who built the first spelling checker that worked and a format for e-books for Microsoft. "When something is good enough and close enough to paper for people to say, 'I want to use this,' then things will change quickly as they have with the iPod."
Newspapers might live long on such devices, but again, there are hurdles, some technical, some economic.
"It looks simple to come up with a tablet that works, but it is not," said Esther Dyson, a consultant on digital issues. "In order to have the power and portability you need, you need power. The screen is the part of the device that uses the most power."
Mr. Brass and others have suggested that superthin lithium batteries will do the trick, or that the power source can be built into the spine of a fold-out two-page device.
But even when such a gadget is finally in a form consumers will glom onto, newspapers will have to fight for space and mindshare. And it is axiomatic thus far that online customers are much lower-margin customers than print customers. Because there is no scarcity of ad space on the Web, you cannot charge nearly so much for a banner ad on a page with millions of hits as you can for a double-page spread in a national paper.
The real peril of the industry has been the uncoupling of the editorial model - still salient if the Hurricane Katrina coverage is any indication - from the business model, which relies in part on classified advertising. The Web gives classifieds a functionality that print will never match. (Thank you, Craigslist.) And everybody knows consumers on the Web do not want to pay for what they can get free, right?
Maybe not. As iTunes has demonstrated, there is a vast swath of consumers who are willing to pay for what they want and avoid the moral taint of unauthorized use.
There is already a crisscross of intention on the part of the current content providers. The primary gesture of Google and Yahoo - search is actually content - is now being woven with video, paid columnists and, ye gads, even some reporters. Television networks are beginning to explore whether people would pay for an on-demand version of their product. Blogs are federating into verticals of quality to be sold to advertisers. Broadcast radio worries about competition from satellite radio while satellite wonders if it can get people to unplug their iPods.
That is the future that newspapers have to prepare for. Readers no longer care so much who you are, they just want to know what you know.
That may sound grim for big media brands, the kind of proposition that will not provide enough cash flow to finance a squad of reporters examining what a hurricane left behind or venturing out onto the streets of Baghdad. But in a frantic age where the quality of the information can be critical, being a reliable news source humming away in everyone's backpack sounds just useful enough to be a business.
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Glenn Chapman
Agence France-Presse
SAN FRANCISCO--Microsoft has teamed up with mobile computer maker Palm and telecom giant Verizon on a new "smart phone" aiming to grab market share from the popular Blackberry device.
The world's biggest software group and the two partners will combine their marketing clout to take on established "smart phone" devices using the Blackberry platform developed by Canada's Research in Motion.
"Most people carrying a Blackberry today still have a mobile phone," Allen Bush of Palm told AFP. "That idea is just ludicrous to us; that in this day and age, you can't combine that elegantly."
A new "Windows Mobile" telephone that doubles as a hand-held computer with features including being synchronized with popular Microsoft Outlook messaging and scheduling software should be in US stores by early 2006, said Palm's chief executive officer Ed Collie.
Microsoft chairman Bill Gates called the telephone "more than a milestone" and said it is designed to make users feel as though "Hey, I've got Outlook in my pocket."
Bush predicted it wouldn't be a "winner take all" battle with Blackberry, but that it was more likely to become a market with many competing devices.
"I think the market is converging now," Douglas Smith of Microsoft told AFP. "This a natural step that all things go mobile. This is where it has all been leading."
Users of the new Treo phone developed by Palm will have Microsoft software connected to Verizon's broadband EV-DO network capable of transferring huge amounts of data "lightning fast," said Verizon president Denny Strigl.
"I think we've hit a sweet spot," said Colligan.
Gates, Colligan and Strigl refused to discuss how much the mobile phone would cost or say anything about a radio feature engineered into the device.
Company marketing people said the "smartphone" would likely be priced at the high end of a market currently ranging from 199 to 599 dollars.
The Treo uses a Microsoft operating system to link users to multiple e-mail accounts and even view Powerpoint presentations.
The companies have been developing the telephone for years, using code names derived from 1960s rock bands and children's television program Sesame Street in a project jokingly referred to as "the worst-kept secret in the industry."
"Palm always did great work, so we lusted after some of those things they did well," Gates said. "Likewise, Verizon worked well with most Windows devices online. The strategy is to draw on our strengths."
Company officials said the announcement was timed to give "the 640,000 developers writing applications today" a chance to tailor products and uses for the Windows Treo.
The companies are aiming to capture a major portion of approximately 126 million business people who use Microsoft software to coordinate work, e-mail and scheduling in their work places, Gates said.
Verizon's high-speed network reaches half the nation's population, Strigl said, making it more accessible than the Wi-Fi system used by laptop computers.
"You don't have to go three blocks to find a [Wi-Fi] hot spot," Strigl said.
"I might add you don't have to drink a cup of coffee," he said, taking a jab at cafes that offer wireless computer connections to customers.
Colligan conceded that Palm and Microsoft have competed vigorously in the past.
"Sometimes partners compete and competitors partner," Colligan said. "And that is what is happening here."
Gates said the only problem he expected with the Treo was "keeping it in stock."
Agence France-Presse
TOKYO -- Sony chief executive Howard Stringer unveils a three-year plan Thursday aimed at reversing a slump at the Japanese electronics icon, in the first major test for the British-born former journalist.
The 63-year-old executive, the first foreigner ever to take the helm at Sony, is expected to focus on the company's core electronics division, which has been mired in losses for the past two years.
While further cost cuts seem likely, analysts say Stringer must also reverse a slump in sales to secure the future of the sprawling electronics and entertainment conglomerate, which was born from the ashes of World War II.
Though it is also known for movies and music, the company which brought the world the transistor radio, Walkman and PlayStation still relies on electronics for 70 percent of its 67 billion dollars in annual sales.
But it is now lagging behind rivals such as Sharp and Panasonic brand-maker Matsushita in the television market and struggling to challenge Apple's lead in the market for digital music players.
Stiff price competition and loss of market share to rivals saw Sony post its first back-to-back quarterly loss in the three months to June and drastically slash its forecast for the year.
"What the market is hoping is that they clearly show concrete steps to improve their electronics business," said Mitsuhiro Osawa, an analyst at Mizuho Investors Securities.
While cost cuts, layoffs and the sale of non-core businesses would help boost profitability, investors also want to know how Sony will boost sales.
"Sony's previous business plan seemed to focus on costs and less on the product line-up," said Osawa.
In 2003 the company announced 20,000 job cuts over three years as part of a "Transformation 60" plan to trim costs and put its media, entertainment and electronics units on the same path ahead of its 60th anniversary in 2006.
The company is now considering floating its financial unit but has denied reports it is planning to sell the subsidiary, as well as a stake in a satellite broadcaster, in a move that could lead to substantial layoffs.
However, Sony declined to comment on reports that it would stop development of new picture-tube television models and reorganize assembly plants in 11 countries abroad, including the United States, to switch to flat TVs.
Welsh-born Stringer, or "Sir Howard" as he is known since being knighted by Queen Elizabeth II in 1999, has a hard act to follow.
The only other foreign executive to head a major Japanese company was Carlos Ghosn, the Brazilian-born Frenchman credited with turning around Nissan Motor after his appointment in 1999 when France's Renault took a controlling stake.
At the company's annual general meeting in June, Stringer was asked by a shareholder about his proficiency in Japanese. He replied that he was a foreigner "but first and foremost I am a Sony warrior."
Sony's meteoric rise began almost 60 years ago in Japan's bombed-out capital when Akio Morita and Masaru Ibuka founded a company to repair damaged radios.
Its first product was a rice-cooker. It went on to bring the world myriad other gadgets, becoming a global icon and symbol of Japan's post-war technological might.
Agence France-Presse
SINGAPORE--Computer sales in the Asia Pacific excluding Japan are tipped to rise by almost 15 percent to 40.03 million in 2005, led by strong demand for notebooks as prices tumble, an industry report said Wednesday.
Growth is expected to continue in 2006 with a projected increase of 12.2 percent to nearly 45 million units, research firm International Data Corp. (IDC) said.
"Notebooks were on fire this past quarter with the spread of low prices and increased awareness in mature and developing countries alike," said Bryan Ma, IDC's regional associate director of personal systems research.
According to IDC, sales of notebook computers in 2005 are expected to increase 35.7 percent, compared with 10.2 percent for desktop computers.
Personal computer (PC) demand will be strongest in the emerging markets of China and India, with other South Asian countries expected to offer significant growth prospects.
"The PC markets in Pakistan, Sri Lanka and Bangladesh, though small at the moment, represent burgeoning opportunities in the region, particularly in the business and public sectors," said Andrew Wong, IDC's research manager.
"All of these markets are highly fragmented with a few strong local vendors and a large assembler/whitebox market.
"This represents an opportune time for multinational vendors to respond competitively in order to try to achieve increased penetration in these markets."
China will remain biggest market, with almost 48 percent of the region's sales in 2005 expected to come from the Asian economic powerhouse, IDC said.
Its neighbor India, the second largest PC market in Asia, is expected to clock the fastest sales growth rate of 30.1 percent this year and 25.6 percent next year on the back of buoyant economic growth, IDC said.
For mature markets like Hong Kong and South Korea, computer sales growth rates are expected to be modest, IDC said, without giving specific figures.
Alexander Villafania
INQ7.net
THE THIRD Philippine Youth Congress in Information Technology (Y4IT) has drawn its biggest crowd to date, nearly 7,000 students from high schools and colleges nationwide, one of its organizers said.
Y4IT was held from September 15 to 17, highlighting current events in the IT industry in the field of e-learning, video game development, the contact center business, open source programming, network security, robotics, wireless communications technologies and bio-informatics, among others.
UP assistant vice president for development Jaime D.L. ; said delegates came from as far north as Batanes province and as far south as Tawi-Tawi province. He said the UP Theater where they held the three-day even was unable to accommodate the throngs of students that continued to arrive.
"We had to refuse entry to other students because the UP Theater was already full up to the lobby. These students had to brave the rain just to attend," Caro said, adding that the UP Theater could only sit 2,000.
Caro added that they had almost doubled the number of attendees since they started in 2003.
He attributed the increase to the growing interest of students in IT careers.
"For many of these students it was their first time to see the presentations that we lined up during the last three days so they were really happy to get the big picture about the whole IT industry," Caro said.
Y4IT was organized by the University of the Philippines' Information Technology Training Center, the Department of Science and Technology's Virtual Center for Technology Innovation, and the Diliman Computer Science Foundation Inc.
For next year, Caro said, they might shift the event's format to breakout sessions to allow students to choose which IT tracks to attend. The UP Film Center next to the UP Theater could also be used for next year's Y4IT.
Juan Mercado
Inquirer News Service
NO other province marks, as Cebu does, Press Freedom Week. Come the third week of September, the Cebu media set aside fierce competition to mark together in unique ceremonies the occasion when martial law shackled, 33 years ago, liberty of expression.
"Slavery was the price tag for democratic survival … Ferdinand Marcos told us that fateful night," their 1998 pooled editorial recalled. "Revisiting [this] 'enforced unanimity of the graveyard' can be useful."
"'Salvage' [summary execution] victims and massive corruption … underscored the awesome penalty exacted when propagandists masquerade as journalists," was the shared view of five dailies, 34 radio and eight TV stations. "Today, far too many take freedom of the press as a constitutional given, 'constant as the northern star.'"
The week's activities range from forums on professional issues, journalism films, exhibits, an opening Mass, preceded by a freedom walk, plus socials. Pooled editorials are a fixture.
At the Fernan-Cebu Press Center, the 2005 sessions will cover press councils, radio commentator murders to strained government-media relations. "Three Prisms On A Troubled Craft" has an editor, a foreign correspondent, and a priest assess this complex calling.
A review of past Press Freedom Weeks reflects concerns of newsmen who cover this major metropolis.
Hoodwinking is widespread where power seekers, on front pages and prime time, besiege brittle institutions, noted "An Itch to Stampede," Tuesday's pooled editorial. Targets include the presidency, the military, the Church and local governments.
Parrot-like replays of bogus claims by power seekers flub ethical standards and spawn scandal frenzies. "This erodes our most critical asset: credibility." The editorial quoted Inquirer columnist Solita Monsod: "I want no part of what has to be called the lynch-mob mentality that seems to grip this nation ... and the media are partly to blame."
"Accuracy + balance + completeness + detachment + ethics = fairness" is how Freedom Forum puts the issue. The media must hone their ability to set off patently false public statements with facts and context. "Otherwise, politicians will continue to dupe us."
Value-rooted competence is a constant theme. "Smell the demographics," an earlier commentary suggested. "They tell [us] … a new generation of journalists are moving up the geriatric escalator into key policy posts here. Many are post-martial law baby-boomers. A number are women. Some are better trained than their elders.
"It's also a generation that wonders aloud: In journalism as in other professions, moral shabbiness exudes pus. The stench offends. If we think otherwise, we should have our heads examined."
Restoration of liberty of expression, by people power, is a "gift with strings attached," Press Freedom Week's first editorial said. "But make no mistake about it. This is not constitutional largesse for those who carry a press card. Nor are we just complacent beneficiaries of unbridled reporting or comment."
"We are, first and last, trustees of this gift," it asserted. "As stewards, we're tasked to use the latitude this freedom provides for what is just and good."
The week offers something for the young and for the graying, the 2000 editorial, "Cathedrals Without a Soul," pointed out.
"This counterpoint is deliberate… Our young have patchy memories of the dictatorship. Few recall that ordinary citizens, massed as 'People Power' on Edsa, risked all to return liberty to them. 'Utang na loob' unfortunately doesn't flourish in a vacuum."
But the elderly "bear scars from the trauma inflicted by the 'New Society's' censored rags and gagged stations." The week offers "a chance for quiet recommitment to this fountainhead of other liberties. 'Nunca Mas.' Never Again."
Renewal is anchored in "the resistance set by journalists of a tougher mould": Joaquin "Chino" Roces, Teodoro Locsin Sr., James Reuter, SJ, Jose Burgos, among others. They underscore a dog-eared but often-forgotten truism: "We journalists build on sand, if we work by values less enduring than integrity."
"Building New Cisterns," in 2003, sharply reminds journalists of their debt to forebears. Today's press "basks complacently in liberties that earlier generations of journalists fought for… [But] we drink from cisterns we never built. And we reap from vineyards we never planted."
That debt is partly paid off by unflagging dedication to daily truth-seeking -- a grueling task in a society of skewed privilege. Here, "the powerful exact what they want and the poor grant what they must."
The press must perform as a fair -- and perceptive -- one. "Journalists who come after us will also need cisterns of press freedom. We, too, must replenish that for them."
Technology, meanwhile, radically recasts the tools -- and those who work in it. E-mail and the cell phone, for example, have whittled away at the traditional face-to-face oversight that editors exercised over reporters.
"Thirty years ago, there was no Internet, no cable TV, no online newspapers, no blogs," recalls Richard Posner in his book, "Bad News." "The public's consumption of the news used to be like sucking on a straw. Now it's being sprayed like a fire hose…."
Technology merely underscores the urgency of fostering value-anchored competence in a country where the needy are bought for a pair of sandals. "Affirm that dream in a time of trouble and we need not walk backward into the future."
Internet Oversight Board OKs New Domains
Creating the ".cat" suffix for individuals, organizations and companies that promote the Catalan language and culture was relatively uncontroversial. Though the language is spoken largely in certain regions of Spain, backers say a domain name could unify Catalan speakers who live in France, Italy, Andorra and elsewhere. The name could begin appearing in use next year.
As for ".xxx," the Internet Corporation for Assigned Names and Numbers deferred final approval for the second time in as many months.
The board decided to seek changes to a proposed contract with ICM Registry Inc., the Jupiter, Fla., that would run the domain name for voluntary use by the adult entertainment industry. No details were immediately available on the changes sought.
The ".xxx" domain has met with opposition from conservative groups and some pornography Web sites, and ICANN postponed a final decision last month after the U.S. government stepped in just days before a scheduled meeting to underscore objections it had received. ICANN had given a preliminary OK in June.
ICM argues the domain would help the $12 billion online porn industry clean up its act. Those using the domain would have to abide by yet-to-be-written rules designed to bar such trickery as spamming and malicious scripts. ICM would charge $60 per name.
Anti-porn advocates, however, countered that sites would be free to keep their current ".com" address, in effect making porn more easily accessible by creating yet another channel to house it.
And they say such a domain name would legitimize adults sites, which two of every five Internet users visited in April, according to tracking by comScore Media Metrix.
Many porn sites also objected, fearing that such a domain would pave the way for governments — the United States or repressive regimes abroad — or even private industry to filter speech that is protected here under the First Amendment.
ICANN was selected by the U.S. government in 1998 to oversee Internet addressing policies, although the Commerce Department retains veto power over decisions. More than 260 domain name suffixes exist, mostly country codes such as ".fr" for France. Recent additions include ".eu" for the European Union and ".mobi" for mobile services.
Although ICANN was to consider the ".asia" domain during Thursday's teleconference board meeting, it took no action on establishing a unified domain for the Asia-Pacific community.
By TODD BISHOP
SEATTLE POST-INTELLIGENCER REPORTER
LOS ANGELES -- Microsoft Corp. is grappling with "a lot of smart competitors," including Google and Apple, who are ahead of the Redmond company in some key markets, Bill Gates acknowledges.
But the Microsoft chairman on Tuesday said his company remains the overall industry leader, and he compared the current rivalries to legendary ones with Lotus, Novell and WordPerfect -- situations in which the Redmond company ultimately overcame steep odds to prevail.
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Gates |
"At any point in our history, we've had competitors who were better at doing something," Gates said in an interview with the Seattle Post-Intelligencer, underscoring the fact that it wouldn't be unprecedented to come from behind now.
That was one of the subjects addressed by Gates during the interview at the company's Professional Developers Conference, where Microsoft is seeking to rally support for Windows Vista and Office 12, the next versions of its dominant PC software programs. Among other things, the company showed plans to shift away from traditional drop-down menus to a new "ribbon" of commands across the top of the widely used Office programs.
Gates answered questions on a wide range of topics, including Microsoft's growth prospects in the Seattle region, its ambitions in China, and efforts to shore up the security of its software. Edited excerpts from the interview:
Q: You showed Office 12 here for the first time today. How do you think users are going to react when they see such a different look?
Gates: Well, this is the world's most popular application, and people sit and use it hours and hours a day, and so any advance we make in Office can actually drive up global productivity in a significant way. For years we've had the user interface confined to just these 2-D menus.
As Office has gotten richer, we knew that was a very limiting thing. It just wasn't very visual and so now, what we've done, it is a big deal. If you're a Word user, it should only take you 10 or 15 minutes to see how those things are laid out, so it's not like you're starting over. All the same concepts are there. The capabilities are there, and you will find yourself using more of the product.
You'll hear some people say, "Yikes, this is a change," but pretty quickly you'll hear from people about what a timely and important change it is.
Q: Companies such as Google and Apple have taken the lead in some key areas. Are Windows Vista and Office 12 a chance for you to recapture some of that buzz, and show that Microsoft plans to remain a central figure in the software industry?
Gates: Well, if you look at software very broadly -- productivity software, software tools -- Microsoft is the leader in way more respects than anyone else. Driving the research that will give us speech recognition and vision, and all of those big hard things that you've got to take a long-term approach in.
At any point in our history, we've had competitors who were better at doing something. Novell was the best at file servers. Lotus was the best at spreadsheets. WordPerfect was the best at word processing.
Right now, because of the breadth of what we do, we have that in many areas. Nokia is way ahead of us in phones; we're closing the gap. Sony is ahead of us in video games. We're just on the verge of something (the Xbox 360) that will help us close the gap there. In Web search, Google is the far-away leader. Big honeymoon for them. Even if they do "me, too" type stuff, people think, "wow." And Apple in music has done a fantastic job.
We've got all these areas -- like tablet computing, this Internet connectivity, or taking presentation to a new level, office productivity -- where we're just out there in front and we just need to keep pushing the frontiers.
In those areas where somebody else has done well, that's great. We'll match what they do, we'll bring new things to it, do it better and integrate it in with other things. And so it's very healthy for the consumer. We see that in search, we see it in music. It's not new at all that that's out there.
Q: Are there any features of Windows Vista that the U.S. antitrust settlement is keeping you from including, that you would otherwise want to include?
Gates: We're not being prevented from including features, and that's the strength of the settlement that we reached with the Justice Department and others. There's quite a bit of process we go through to make sure that the way we're putting them in and exposing them to third parties, that we're meeting all the requirements of that. But it's not preventing us from being very, very innovative and making it as rich as we want to.
Q: I wondered, for example, if you might want to build in antivirus protections into Windows if not for the antitrust situation.
Gates: Well, there's a ton of security capability that we are building in to Windows Vista. The whole thing about spyware, malware, phishing, a lot of things that support antivirus. The actual capability of getting updated signatures, that's something you need on an ongoing basis, so you need to ship that separately from the operating system itself and so we will have a way that people sign up from that separate from the operating system.
Q: What will Windows Vista do for computer security, and for Microsoft's security reputation in general?
Gates: Ever since I put out the big security memo talking about that as our top priority, we've been gaining a lot of respect for how seriously we're taking it, and the steps we've taken. People have seen visible progress in terms of the ease of securing their systems, some reduction in the spam that's out there.
Now that doesn't mean that the bad guys aren't always trying to find something new. Phishing is the big thing they're doing right now. And so there will be constant innovation in these areas, invention, the need to educate customers how they set their systems up in the right way.
But in terms of making it something that doesn't really hold the industry back and Microsoft is viewed as a leader in terms of our investments, and our predictability and showing the framework for how we're doing this, we have made immense progress. We can see that when we go out and survey customers. They want more, and we're not done in any way, but they appreciate the progress and the attitude we're showing.
Q: Some people hold Microsoft most accountable for security problems, even though software flaws are exploited by "bad guys," as you said. Is that a fair criticism?
Gates: Software in general, whether it was from Microsoft or somebody else, was not set up for an environment where all the computers were connected together. So it's not like there was some software that had this security capability and our software did not. As we use the Internet to connect everyone up, then the need to essentially have suspicion and only listen to certain other systems, and if flaws come up to have those updated very quickly, that became a new requirement.
Because Microsoft is the biggest software company and so successful, we should be held responsible for coming up with those things. We've got to push the state of the art, we've got to be the one to solve those problems.
Q: You've said that this will be the most significant release of Windows since 95. Do you have any hope or expectation of recapturing the consumer excitement that accompanied that particular launch?
Gates: I'm sure we'll have some of that. The PC is so broad now compared to back in 1995, it's not quite as radical. Everybody has got a PC. I don't know if we'll use the same kind of midnight madness type things. We're seeing a lot of that in our Xbox world, where when we do a new version of 'Halo,' we do this Xbox 360, because it's very consumer oriented, we see just such mass enthusiasm.
Q: The economy has been rebounding, and Microsoft's hiring has remained steady, but at pretty much the same pace over the past few years. Do you envision that hiring rebounding in the coming years in the Seattle area?
Gates: We have been hiring people in Seattle. We see that continuing, I'm not sure I'd say at any different level than it's been at. The constraints on how many great engineers are there out there to hire will always put a ceiling on that. We're glad that we're adding people, but I wouldn't say we're entering some significantly new phase.
Q: Is outsourcing playing a role there, in lessening the amount of growth in the Seattle area?
Gates: Well, the economy is a very complex thing. We sell way more of our software overseas than we sell internally. That is, the U.S. disproportionately gets our R&D activity relative to the amount of software we sell in the U.S. And so, why has Microsoft ever been able to hire people? Because of world trade. So if people don't believe in letting other countries get rich and buy more U.S. products, if trade liberalization freezes up or goes backwards, that's a very bad thing for an export-oriented company like Microsoft.
We like the idea that China is developing their economy. They've taken more people out of poverty than any country in history over just even the last 10 years. We view those as a good thing. It does mean the world is getting a lot more competitive. We will have competitors arising out of these Asian countries. That's fine.
So I think the advances in the world economy largely have been positive, and we see that in the increasing sales in Asia, and without those our hiring growth couldn't be maintained.
Q: Last week you were scheduled to meet with Chinese President Hu Jintao before his U.S. trip was canceled. How much will China figure into Microsoft's future, and how will you overcome challenges there, such as open source software and piracy?
Gates: China is an amazing country, and I was very disappointed that it didn't work out for the President to come last week. I fully understand why the leaders decided that made sense. I'm very hopeful he'll come back to Seattle. It's going to be great to sit down and talk with him. I got to know his predecessor, Jiang Zemin, and now he's leading China in this new era.
We've been investing there, it's our long-term approach. I think China will set the standard in some ways in terms of efficiency, driving a new wave of companies into the world economy.
Q: One of the big pieces of news this week was Oracle's plan to acquire Siebel Systems. How would that deal affect the competitive landscape for Microsoft?
Gates: We've always had a good relationship with Siebel, and we'll do our best to keep that strong as they become part of Oracle. Oracle we do some things with and obviously compete in the database area. I don't think that acquisition overnight is a dramatic thing. It is part of a trend toward some consolidation that people want to simplify the software they run in their companies.
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The new tool, unveiled Wednesday at http://blogsearch.google.com, focuses exclusively on the material contained in the journals known as Web logs, or "blogs."
Mountain View-based Google, the Internet's general search engine leader, first set its sights on blogs with its 2003 acquisition of a small startup called Blogger that makes software to publish and manage the journals.
Since that deal, Google had been expected to build a blogging-focused search engine — a mission finally accomplished by a group of by developers in the company's New York office.
"There really has been a need for a world-class search product to expose this dynamic content to a worldwide audience," said Jason Goldman, who came to Google in the Blogger deal and is now the company's product manager for blogging search.
Over the past two years, blogs have become an increasingly popular vehicle for sharing opinions and information, sometimes breaking news and more often prodding the mainstream media into reconsidering how it has handled some big stories.
First word of Google's new searching tool was, in fact, disseminated by a blog.
A few people have been able to make a living largely off their blogs, or parlay them into book deals. Blogs also have been a source of embarrassment and angst, resulting in the firings of several workers, including a Google product manager, who angered their employers with revelations posted on their sites.
No one knows for certain just how big the so-called "blogosphere" has become. Technorati, the niche's top search engine so far, says it indexes 17.1 million sites spanning about 1.5 billion links.
Goldman declined to disclose the size of Google's blogging index.
Despite blogging's steady growth, its appeal has remained narrow, skewing primarily to younger audiences and technological trendsetters.
But given Google's broad reach, its specialty search engine is expected to provide blogging with additional momentum. Google said to tool would allow searches not just for blogs written in English but also in French, Italian, German, Spanish, Chinese, Korean, Japanese, Portuguese and other languages.
The appearance of the new Google tool, which catalogs the latest blog postings by looking at the Web feeds they generate, also makes it more likely that two other tech powerhouses and fierce rivals, Yahoo Inc. (Nasdaq:YHOO - news) and Microsoft Corp., will develop a similar feature.
Microsoft's next operating system, Vista, is supposed to feature built-in tools for Really Simple Syndication, or RSS, and Atom — the two most widely used techniques for letting people subscribe to Web feeds to keep abreast of the latest postings on blogs and news sites.
"This sort of feels like 1995 when the Web was just starting to explode. Now it feels like the same thing is happening to blogging," said Bob Wyman, chief technical officer for PubSub, which offers a Web feed subscription service.
Google, Yahoo and Microsoft's MSN already had been indexing blogs in their general search engines, but the broad approach reaps results that often buries blog links or points to outdated information.
By focusing exclusively on blog feeds, Google theoretically will be able to deliver fresher and more relevant results.
Google's expansion, coupled with the likely invasion of Yahoo and Microsoft, could spell trouble for the early specialty engines that have helped bolster blogging in its early stages. Besides Technorati, this group includes Feedster, IceRocket and DayPop.
Although the pioneers have played an important role in blogging's growth, they remain so small that only Technorati attracts enough visitors to register in the monthly Internet traffic measurements compiled by Nielsen/NetRatings.
Technorati drew 545,000 unique visitors last month, less than 1 percent of the 73.1 million that swarmed to Google's main search page, Nielsen/NetRatings said.
In a Wednesday posting on his blog, Technorati founder David Sifry welcomed Google's competition, describing it as "a validation moment for the blogosphere" and promising to counter with "some tricks up our sleeves."
Erwin Lemuel Oliva eoliva@inq7.net
INQ7.net
HACKERS are now using free online "tools" to mask the real location of attacks, a scary trend that both system administrators and law enforcer face today, a security expert said in a recent security summit in Manila.
"Hackers are now using spoofed Internet Protocol (IP) addresses to hide their real location," said Bitstop president Wilson Chua at the ManilaCon 2K5, Philippine IT Security Conference.
Hiding the real IP addresses or source of attacks poses a problem for law enforcers trying to pin down malicious hackers, Chua said.
So-called "privacy tools" have recently become available to hackers, Chua said. These tools usually allow anyone to mask their IP address with "proxy servers" available online.
The same privacy tools -- one developed by the Massachusetts Institute of Technology--even randomly picks IP addresses to confuse security experts away from pinpointing the source of attacks, Chua said.
These privacy tools are designed mainly to allow users to mask their locations, especially in cases where their governments have strong censorship policies.
"What is really scary about these tools is that it is now harder to trace back attacks. Some can eve circumvent firewalls, intrusion, detection and preventions software, and other solutions," said Chua.
There are, however, recent ways to mitigate risks of attacks coming from spoofed IP addresses, he said.
Companies could impose so-called "two-factor authentication systems" to prevent unknown IP addresses from being used to launch attacks, he suggested.
There are also recent little programs that were written to unravel spoofed IP addresses. One, written by Lars Kindermann, allows system administrators to discover the real IP addresses of attacks.
With security problems likened to moving targets, there would always be new ways to exploit computer systems, Chua said.
"Online privacy tools can be used in a good or bad way. Right now, IP spoofing is something that scares us today," he said. "But we already have some solutions available to unmask the real locations of attacks."