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11/10/2006
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Amazon's Jeff Bezos Dishes The Dirt On IT 'Muck'

In This Issue:
1. Editor's Note: Online Music: Hold On To Your Wallets
2. Today's Top Story
    - Amazon's Jeff Bezos Dishes The Dirt On IT 'Muck'
Related Stories: E-Business
    - Google Reveals Copyright-Infringement Suit Against Its Video- Sharing Service
    - Online Gamblers Worked To Defeat Sponsor Of Anti-Gambling Legislation
3. Breaking News
    - Google Video Blog Apologizes For E-Mailing Kama Sutra Worm
    - Red Hat, VMware Expand Cooperation On Virtual Front
    - New Panel Aims To Identify Risks And Challenges Of E-Health Systems
    - Youth-Oriented Helio Launches Wireless Location Service
    - Symantec Defends Upgrade Software; 'Not Adware'
    - Phishers Pocket $2.8 Billion From Unsuspecting Consumers
    - Microsoft To Post 6 Patches Next Week
    - IT Industry Group Outlines Goals For New Congress
    - Fake Sites Insist Microsoft Bought Firefox
    - E-Voting Glitches Examined; Reform Push Planned
    - Government Still Trying To Dismiss NSA Spy Program Lawsuits
4. Grab Bag
    - YouTube To Go? (Forbes.com)
    - Blogosphere Sees Healthy Growth (BBC.com)
    - Year-End Computer Glitch Worries NASA (CBS News Online)
5. In Depth: Personal Tech & Reviews
    - Blu-Ray To Meet HD DVD In All-In-One Player
    - Review: The Averatec Voya 350 GPS Device Will Drive You Sane
    - Progress Report: Broadband In The Sticks
    - Company Creates Cyberbikes To Whip Gamers Into Shape
    - PayPal Provides Rebates, Free Shipping
    - Microsoft Makes Xbox A Family Machine
6. Voice Of Authority
    - OK, Vista, Show Us What You Got
7. White Papers
    - 10 Critical Issues For Windows Network Security
8. Get More Out Of InformationWeek
9. Manage Your Newsletter Subscription

"Music expresses that which cannot be said and on which it is impossible to be silent." — Victor Hugo


1. Editor's Note: Online Music: Hold On To Your Wallets

Microsoft's agreement to pay Universal Music Group for every Zune music player sold will likely have some interesting ramifications. Most likely it will mean more money coming out of consumers' wallets.

The money grab won't happen right away—after all, as the new kid trying to grab market share from Apple, Microsoft can't very well come out of the gate with something that's vastly more expensive. A 30 Gbyte Zune player will sell for $249.99, with songs available for download at 99 cents each, exactly the same as for the iPod and in the iTunes world. (Other prerelease details about Zune are available here.)

Also, Microsoft has already put Wall Street on notice that it will take a very long time to recoup its investment in Zune. All this says the company is probably quite happy to take a loss for a while in the interests of building a following, and, of course, being Microsoft it has the deep pockets to do so.

Instead, rising prices will take a while to come to fruition. As Microsoft has negotiated with Universal, it will likely follow suit with Sony BMG and other major labels. At some point, this revenue-sharing arrangement will begin to eat into Redmond's bottom line and shareholders will begin to scream.

Meanwhile, the music labels' existing deals with Apple will come up for renewal. And instead of them agreeing to the current Apple policy of paying Universal and the gang only for songs that are actually purchased by customers, the music giants will likely push for the same deal they got from Microsoft. Despite its market-leading 80% share of all music players sold, Apple will be able to hold out for only so long, given the squeeze from Microsoft and from others, like Creative and SanDisk/RealNetworks, that are targeting this space.

Eventually, Apple and Microsoft will be forced to raise their fees to help cover the costs of these deals, and I'm guessing this will likely mean higher prices for the songs themselves or for the monthly subscription services. Hardware price/performance being what it is, I think the vendors will have a harder time justifying that.

Ah, competition. And speaking of, seems Apple won't necessarily have an easy time holding on to its market share. A new survey suggests iPod customers aren't as loyal as the Mac base has long been.

That's the way I see it playing out. What do you think? We'll get more details on Tuesday, when Zune starts to ship. Stay tuned, and in the meantime please feel free to comment on my blog entry.

Johanna Ambrosio
jambrosio@cmp.com
www.informationweek.com


2. Today's Top Story

Amazon's Jeff Bezos Dishes The Dirt On IT 'Muck'
In an interview, Bezos talks about selling IT services by the sip, e-commerce, the advantages of VoIP, and why he's interested in space travel.

Related Stories: E-Business

Google Reveals Copyright-Infringement Suit Against Its Video-Sharing Service
The company didn't say how many suits were filed or where they were filed, nor did it name the plaintiffs.

Online Gamblers Worked To Defeat Sponsor Of Anti-Gambling Legislation
With the ouster of Rep. Jim Leach of Iowa, an opponent of online gambling, players are hopeful for a more receptive climate in Congress.


3. Breaking News

Google Video Blog Apologizes For E-Mailing Kama Sutra Worm
Google announced that a member of its video team had sent the worm, which wipes out files, to members of a Google Video Blog discussion list.

Red Hat, VMware Expand Cooperation On Virtual Front
They aim to develop a certification program and work to achieve a high degree of interoperability between Red Hat Enterprise Linux 5 and VMware's virtualization platform.

New Panel Aims To Identify Risks And Challenges Of E-Health Systems
Pioneers in the deployment of digital health record systems want to share the lessons they've learned about the pitfalls, challenges, and safety risks of implementing e-health systems.

Youth-Oriented Helio Launches Wireless Location Service
Helio's service isn't cheap. The latest phone costs $225, and its service starts at $65 a month for 500 minutes and unlimited data services.

Symantec Defends Upgrade Software; 'Not Adware'
LiveConnect is actually a notification system that alerts users when a major upgrade is available for their Symantec software, the company says.

Phishers Pocket $2.8 Billion From Unsuspecting Consumers
Criminals running phishing scams are raking in more money than ever, with the average loss jumping fivefold in the last year and the percentage of money recovered plummeting, according to a survey published Thursday by research firm Gartner.

Microsoft To Post 6 Patches Next Week
Microsoft plans five updates for Windows and one for XML Core Services. At least two of the updates will be labeled "critical," Microsoft's highest warning rating.

IT Industry Group Outlines Goals For New Congress
CompTIA hopes for action on new technologies, telecom reform, updating intellectual property laws, and unfettered use of the Internet.

Fake Sites Insist Microsoft Bought Firefox
The parody sites tout the new Microsoft browser as "It's better now like seriously," but actually download Internet Explorer 7.

E-Voting Glitches Examined; Reform Push Planned
Some 17% of the complaints to Common Cause focused on mechanical failure, which is likely to be one of several components in a push for reform as the 2008 presidential election approaches.

Government Still Trying To Dismiss NSA Spy Program Lawsuits
A federal judge this week agreed to hear appeals from the federal government and AT&T on a ruling that the case could go forward despite claims that it would hurt national security.

All Our Latest News

----- The latest research, polls, and tools -----

Wireless In The Enterprise
Learn what more than 500 companies are planning regarding their company's wireless and mobile computing strategies in InformationWeek Research's "Wireless/Mobile Computing" report.

Everything You Hate About IT—And Weren't Afraid To Say
For Network Computing's annual reader poll, we asked some hard-hitting questions: Which tech buzzwords do you despise? Who does your IT group regularly bang heads with? What do you really think about SOA? Our readers responded with blunt honesty; our favorite: "Virtualization makes me want to punch the next salesperson who mentions it."

Then dive deep and check out the results of 25 poll questions on topics including software pricing trends, vendor support shortcomings, and the causes of failed IT projects.
http://www.networkcomputing.com/gallery/2006/1109/1109f1poll1.jhtml

-----------------------------------------


4. Grab Bag

YouTube To Go? (Forbes.com)
The company is reportedly talking with Verizon about putting short video clips onto cell phones. But is there really a market here?

Blogosphere Sees Healthy Growth (BBC.com)
The Web's love affair with blogging shows no signs of abating, according to the latest report from tracking firm Technorati.

Year-End Computer Glitch Worries NASA (CBS News Online)
Shuttle computers aren't designed to make the change from the 365th day of the old year to the first day of the new year while in flight. NASA has moved up its flight plan to avoid any potential problems.


5. In Depth: Personal Tech & Reviews

Blu-Ray To Meet HD DVD In All-In-One Player
A new chip from Broadcom will pave the way for DVD players that handle both of the new, high-definition formats—HD DVD and Blu-ray—in one unit.

Review: The Averatec Voya 350 GPS Device Will Drive You Sane
This GPS and its killer price make it a no-brainer for anyone seeking reliable navigation without a bunch of fussy, overpriced extras.

Progress Report: Broadband In The Sticks
If you live in a rural area, there's a good chance you don't have access to broadband. What's the problem? And what can you do about it?

Microsoft To Pay Universal For Every Zune Sold
This could redefine the digital music business. Rival Apple doesn't give a cut of sales of iPods to music companies. It only pays labels for songs sold on its iTunes music store.

Company Creates Cyberbikes To Whip Gamers Into Shape
A British company has created technology that won't allow video game controls to work unless the player is moving on an exercise machine.

PayPal Provides Rebates, Free Shipping
Incentives will include cash rebates of up to $20 when shoppers use PayPal's service on eBay.com and other qualifying merchant Web sites.

Microsoft Makes Xbox A Family Machine
Microsoft is hoping for a larger role in the digital living room by making movies and TV shows available for viewing through the Xbox video game console.


6. Voice Of Authority

OK, Vista, Show Us What You Got
The next version of Windows is officially ready to ship to business customers. So what are we getting in Vista? It's not an easy question to answer, but David DeJean takes a shot.


7. White Papers

10 Critical Issues For Windows Network Security
This document discusses 10 network security auditing problems and the predefined reports that directly address these issues. These 10 reports are extremely valuable to network administrators and security officers alike because they expose security risks that normally go overlooked.


8. Get More Out Of InformationWeek

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