http://www.informationweek.comInformationWeeken-usCopyright 2012, UBM LLC.2013-01-16T11:40:00ZMicrosoft sold only 1 million Surface tablets, half the original forecast, due to "gloomy" consumer sentiment, says analyst.http://www.informationweek.com/hardware/desktop/surface-rt-sales-estimate-cut-to-1-milli/240146404?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/software/productivity-applications/8-key-facts-about-microsoft-sharepoint-2/240145685"><img src="http://twimgs.com/informationweek/galleries/automated/936/01_Intro_tn.jpg" alt=" 8 Key Changes In Microsoft SharePoint 2013" title=" 8 Key Changes In Microsoft SharePoint 2013" class="img175" /></a><br /><div class="storyImageTitle">8 Key Changes In Microsoft SharePoint 2013</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> Microsoft sold 1 million Surface RT tablets in the holiday quarter last year, an analyst estimated, about half of what the company was previously thought to have sold. <P> UBS AG analyst Paul Thill provided the estimate in a research report this week. Thill originally estimated that Surface RT sales would top 2 million for the quarter ended Dec. 31, but revised his forecast after polling "gloomy sentiment" among buyers during the period. <P> Thill also cut his earnings per share estimate for the quarter by 8 cents, to 76 cents. Analysts surveyed by Thomson Financial, on average, expect Microsoft to post EPS of 75 cents when it reports fiscal second quarter earnings on January 24th. Revenue is estimated at $21.68 billion. <P> Thill's report is the latest bad news for Windows RT, which launched Oct. 26 of last year. <P> <strong>[ Is Microsoft's new operating system really on pace to match early Windows 7 sales? See <a href="http://www.informationweek.com/software/windows8/windows-8-license-sales-top-60-million/240145865?itc=edit_in_body_cross">Windows 8 License Sales Top 60 Million</a>. ]</strong> <P> Just days after <a href="http://www.informationweek.com/windows/microsoft-news/samsung-nixes-windows-rt-tablet-for-us/240146092">Steve Ballmer at CES</a> touted it as one of Microsoft's key allies in the battle for the tablet market, Samsung last week killed plans to launch in the U.S. a device based on the OS, a derivative of Windows 8 designed mainly for portable systems. <P> Samsung senior VP Mike Abary told CNet that the South Korean electronics maker does not see <a href="http://ces.cnet.com/8301-34439_1-57563340/uh-oh-windows-rt-samsungs-got-second-thoughts/">sufficient demand from retailers</a> to justify launch of the previously announced Ativ Tab. Abary said retailers' interest in Windows RT is only "modest." <P> He added that customers may be confused by the OS, which, unlike full-blown Windows 8, can only run software preinstalled by Microsoft or apps downloaded from the Windows Store. <P> "When we did some tests and studies on how we could go to market with a Windows RT device, we determined there was a lot of heavy lifting we still needed to do to educate the customer on what Windows RT was," Abary said. "And that heavy lifting was going to require pretty heavy investment." Abary said Samsung may still launch the tablet in some international markets. <P> Last year, HP confirmed that it had scrapped plans for a Windows RT tablet, based on lukewarm customer feedback. <P> Microsoft developed Windows RT to run on ARM chips made by Qualcomm and Nvidia. But Samsung's move leaves Lenovo, Dell and Asus as the only major OEMs developing products around the OS for the U.S. market. <P> Microsoft itself entered the market when it launched Surface RT in October. Redmond's concern that hardware makers may not fully get onboard with Windows RT was partly behind its decision to go into the business itself. <P> Microsoft plans to release <a href="http://www.informationweek.com/hardware/desktop/microsoft-surface-coming-to-store-near-y/240144090">Surface Pro</a>, which runs Windows 8 Professional, early this year.2013-01-12T09:06:00ZSamsung's decision hurts Microsoft's efforts to gain ground against Google and Apple in the mobile computing market.http://www.informationweek.com/windows/microsoft-news/samsung-nixes-windows-rt-tablet-for-us/240146092?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/windows/reviews/8-key-differences-between-windows-8-and/240006106"><img src="http://twimgs.com/informationweek/galleries/automated/855/01_Intro_WindowsRT_tn.jpg" alt="8 Key Differences Between Windows 8 And Windows RT" title="8 Key Differences Between Windows 8 And Windows RT" class="img175" /></a><br /> <div class="storyImageTitle">8 Key Differences Between Windows 8 And Windows RT</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> Just days after Steve Ballmer touted the company as one of Microsoft's key partners in the tablet market, Samsung has killed plans to launch in the U.S. a device based on Windows RT, a derivative of Windows 8 designed mainly for portable systems. <P> Samsung senior VP Mike Abary <a href="http://ces.cnet.com/8301-34439_1-57563340/uh-oh-windows-rt-samsungs-got-second-thoughts/">told Cnet</a> that the South Korean electronics maker does not see sufficient demand from retailers to justify launch of the previously announced Ativ Tab. Abary said retailers' interest in Windows RT is only "modest." He added that customers may be confused by the OS, which, unlike full-blown Windows 8, can only run software preinstalled by Microsoft or apps downloaded from the Windows Store. <P> "When we did some tests and studies on how we could go to market with a Windows RT device, we determined there was a lot of heavy lifting we still needed to do to educate the customer on what Windows RT was," Abary said. "And that heavy lifting was going to require pretty heavy investment." Abary said Samsung may still launch the tablet in some international markets. A spokesperson for Samsung did not immediately respond to a request for comment. <P> <strong>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross ">suggests it's likely</a>. ]</strong> <P> Last year, Hewlett-Packard said it had scrapped plans for a Windows RT tablet, based on customer feedback. <P> The decision by Samsung, one of the world's leading consumer electronics makers, to pull back from Windows RT surely comes as a blow to Microsoft. On Monday, CEO Ballmer made a surprise appearance during Qualcomm's keynote at CES to tout new Windows devices, including the Ativ Tab, which he called "stunning." <P> Microsoft developed <a href="http://www.informationweek.com/software/operating-systems/windows-8-vs-windows-rt-8-key-difference/240006106">Windows RT to run on ARM chips</a> made by Qualcomm and Nvidia. But Samsung's move leaves only Lenovo, Dell and ASUS as the only major OEMs developing products around the OS for the U.S. market. <P> Microsoft itself entered the market when it launched Surface RT in October. Indeed, Redmond's concern that hardware makers may not fully get on board with Windows RT was partly behind its decision to go into the business itself. <P> "Not that we don't have good hardware partners, but sometimes getting the innovation right across the seam of hardware and software is difficult unless you do both of them," Ballmer said at <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950">Microsoft's annual shareholder meeting</a> in November, Bellevue, Wash. <P> Analysts believe Microsoft may get deeper still into hardware if it senses its partners are not fully behind Windows RT and Windows 8, or if it concludes that the OEM community is not being sufficiently innovative. "Sometimes when you want a true showcase product you have to step up and do it yourself," said Rob Enderle, principal analyst at The Enderle Group, who cited Google's Nexus smartphone as an example. <P> Many PC makers looked at Windows RT "and said this is a crippled product" because it does not run legacy Windows applications, Enderle added. <P> Earlier this week at CES, Microsoft Windows group co-chief Tami Reller said Microsoft is in the hardware business for the long haul. "We got into this business as a business, this isn't a short-term adventure," said Reller.2013-01-11T10:55:00ZPC makers need to build more innovative hardware around Microsoft's new touch-friendly OS, says IDC.http://www.informationweek.com/windows/microsoft-news/windows-8-fails-to-lift-holiday-pc-sales/240146083?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/software/productivity-applications/8-key-facts-about-microsoft-sharepoint-2/240145685"><img src="http://twimgs.com/informationweek/galleries/automated/936/01_Intro_tn.jpg" alt=" 8 Key Changes In Microsoft SharePoint 2013" title=" 8 Key Changes In Microsoft SharePoint 2013" class="img175" /></a><br /><div class="storyImageTitle"> 8 Key Changes In Microsoft SharePoint 2013</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div><!-- /KINDLE EXCLUDE -->Worldwide PC sales fell 6.4% in the fourth quarter despite hype generated by the launch of Microsoft's new Windows 8 operating system, according to market watcher IDC. <P> "Although the third quarter was focused on the clearing of Windows 7 inventory, preliminary research indicates the clearance did not significantly boost the uptake of Windows 8 systems in Q4," said Jay Chou, a senior research analyst at IDC. <P> In the U.S. alone, PC sales were off 4.5% in the fourth quarter and 7% for the full year 2012. <P> IDC analysts blamed the decline in part on what they said was vendors' failure to properly market Windows 8 and to build innovative new hardware that could take full advantage of the new OS's features. <P> <strong>[ Is Microsoft Office right for touch-based computing? See <a href="http://www.informationweek.com/software/productivity-applications/office-2013-is-microsoft-out-of-touch/240003826?itc=edit_in_body_cross"> Office 2013: Is Microsoft Out Of Touch?</a> ]</strong> <P> "Consumers expected all sorts of cool PCs with tablet- and touch-optimized capabilities," said IDC research director David Daoud. "Instead, they mostly saw traditional PCs that feature a new OS (Windows 8) optimized for touch and tablet with applications and hardware that are not yet able to fully utilize these capabilities." <P> Chou added that PC vendors' efforts to promote Windows 8 systems focused too much on touch, and not enough on other <a href="http://www.informationweek.com/windows/operating-systems/windows-8-visual-tour-microsofts-new-des/231601529">Windows 8 features</a>, such as improved security and manageability. "Lost in the shuffle to promote a touch-centric PC, vendors have not forcefully stressed other features that promote a more secure, reliable and efficient user experience." <P> Some PC vendors fared better than others. Lenovo, which focuses mainly on the enterprise market, defied the downturn and saw its fourth quarter PC shipments increase 8.2% year-over-year, to 14.1 million units. ASUS saw shipments increase 5.6%, to 6.5 million units, while market leader HP held steady at about 15 million units. <P> Others in the top five fared considerably worse. Dell saw its Q4 PC shipments plunge 20.8%, to 9.5 million units, while Acer saw shipments plummet 28.2%, to 7 million units. Dell suffered from "aggressive competition," while Acer was hit by its "dependence on consumer spending," which largely went to <a href="http://www.informationweek.com/hardware/handheld/samsungs-10-inch-android-tablets-which-i/240012684">non-Windows tablets</a>, IDC said. <P> A Microsoft exec this week said the company has sold 60 million Windows 8 licenses since launching the touch-friendly operating system last year. <P> "I would like to announce that we have reached the 60-million license mark with Windows 8," said Tami Reller, CFO of Microsoft's Windows division. Reller, speaking Tuesday at the JP Morgan Tech Forum at <a href="http://www.informationweek.com/hardware/handheld/ces-2013-7-standout-technologies/240145683">CES Las Vegas</a>, said the number puts early Win8 sales on pace with those of Windows 7, which debuted in October of 2009. <P> It's "roughly in line with where we would have been with Windows 7," said Reller. "So we feel good about what we have been able to accomplish with the ecosystem. Still much more, so much more opportunity ahead, but certainly looking back we're pleased with what we were able to accomplish with the project, and what we were able to accomplish with the ecosystem heading into launch and in the first selling season." <P> Windows 8 became available to enterprises last summer, and launched to consumers on Oct. 26. Reller said the 60 million includes licenses sold to PC and tablet makers, and upgrade licenses. She did not provide a more specific breakdown of the numbers. <P> <i>Tech spending is looking up, but IT must focus more on customers and less on internal systems. Also in the all-digital <a href="http://www.informationweek.com/gogreen/121012/?k=axxe&cid=article_axxt_os">Outlook 2013</a> issue of InformationWeek: Five painless rules for encryption. (Free registration required.)</i>2013-01-09T10:44:00ZDespite analyst misgivings, Microsoft exec says at CES new operating system is on pace to match early Windows 7 sales.http://www.informationweek.com/software/windows8/windows-8-license-sales-top-60-million/240145865?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/hardware/handheld/ces-2013-7-standout-technologies/240145683"><img src="http://twimgs.com/informationweek/galleries/automated/935/cesice_tn.JPG" alt="CES 2013: 7 Standout Technologies" title="CES 2013: 7 Standout Technologies" class="img175" /></a><br /> <div class="storyImageTitle">CES 2013: 7 Standout Technologies</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> A Microsoft official said the company has sold 60 million Windows 8 licenses since launching the touch-friendly operating system last year. <P> "I would like to announce that we have reached the 60-million license mark with Windows 8," said Tami Reller, CFO of Microsoft's Windows division. Reller, speaking Tuesday at the JP Morgan Tech Forum at <a href="http://www.informationweek.com/hardware/handheld/ces-2013-7-standout-technologies/240145683">CES Las Vegas</a>, said the number puts early Win8 sales on pace with those of Windows 7, which debuted in October 2009. <P> It's "roughly in line with where we would have been with Windows 7," said Reller. "So, we feel good about what we have been able to accomplish with the ecosystem. Still much more, so much more opportunity ahead, but certainly looking back we're pleased with what we were able to accomplish with the project, and what we were able to accomplish with the ecosystem heading into launch, and in the first selling season." <P> Windows 8 became available to enterprises last summer, and launched to consumers on Oct. 26. Reller said the 60 million includes licenses sold to PC and tablet makers, and upgrade licenses. She did not provide a more specific breakdown of the numbers. <P> <b>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross ">suggests it's likely</a>. ]</b> <P> Some market watchers have taken a less rosy view of Windows 8's launch performance. In late November, Topeka Capital Markets analyst Brian White said that his checks of the Asian supply chain revealed that <a href="http://www.informationweek.com/windows/operating-systems/windows-8-fizzling-time-for-windows-clas/240142618">Windows 8 was off to a slow start</a>. "Much lower than ... PC makers originally expected a few months ago," said White, in a report. <P> Deutsche Bank recently cut its estimate for fourth-quarter PC sales, due to "lackluster initial uptake of Windows 8," according to analyst Chris Whitmore. <P> Reller is one of two Microsoft execs overseeing the company's Windows group in the wake of <a href="http://www.informationweek.com/software/windows8/sinofskys-exit-points-to-major-microsoft/240134908">the sudden departure</a> of unit president Steven Sinofsky in November. The other is Julie Larson-Green, head of Windows software and hardware engineering. <P> Reller said Sinofsky's exit would not impact Windows 8's future success. "There is an incredibly deep bench in Windows, not only at the senior leadership level, but across the organization." She added that Sinofksy's departure was "a day of distraction and then people went back to the project that they're working on, which we won't talk about today." <P> Microsoft shares were flat, at $26.63, in morning trading Wednesday. The company is expected to report earnings on Jan. 24.2013-01-09T09:13:00ZFederal healthcare privacy requirements don't apply only to medical institutions -- schools that maintain student health records must also comply with HIPAA law.http://www.informationweek.com/education/data-management/hipaa-101-universities-use-office-365-to/240145874?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/smb/hardware-software/windows-8-8-big-benefits-for-smbs/240142263"><img src="http://twimgs.com/informationweek/galleries/automated/907/01_windows8pro_tn.jpg" alt="Windows 8: 8 Big Benefits For SMBs" title="Windows 8: 8 Big Benefits For SMBs" class="img175" /></a><br /><div class="storyImageTitle">Windows 8: 8 Big Benefits For SMBs</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> While the Health Insurance Portability and Accountability Act (HIPAA) generally applies to healthcare providers and related organizations, the act also imposes requirements on any institution that maintains health records on individuals, including schools. To meet those requirements when it comes to their cloud systems, a number of top universities have opted for Office 365, which Microsoft says can be HIPAA-compliant. <P> "Although the federal HIPAA law in large part applies to health organizations that need to protect patient data, education institutions must also adhere to the same HIPAA regulations if school data systems store students' records that include protected health information," Microsoft said. <P> Microsoft recently worked with several major universities, including Duke, Emory and Thomas Jefferson, as well as the universities of Iowa and Washington, to develop a business associate agreement (BAA) for implementing Office 365 in a manner that's compliant with the HIPAA. The BAA puts in writing the physical, administrative and technical safeguards that will be used to protect data governed by HIPAA within <a href="http://www.informationweek.com/windows/microsoft-news/office-365-to-get-skype-integration/231000726">the Office 365 environment</a>. <P> <strong>[ As Microsoft enters a new year filled with challenges, lets look back at how it did last year. Read <a href="http://www.informationweek.com/software/windows8/microsofts-big-hits-and-misses-of-2012/240145087?itc=edit_in_body_cross">Microsoft's Big Hits And Misses Of 2012</a>. ]</strong> <P> That's a must for educational institutions that maintain student health records, and for those that operate medical schools and on-campus healthcare facilities. <P> "A robust, reliable and secure email system is vital to the daily operations of the university and health system," said Duke University CIO Tracy Futhey in a statement. "Moving to the Microsoft cloud environment will enable us to achieve greater efficiency and ensure that our users will have the level of protection necessary to keep Duke's data private, including guaranteeing that our data servers would stay in the U.S." <P> Among the institutions that helped craft the Office 365 BAA agreement with Microsoft was Thomas Jefferson University and its Medical College, where the full-time faculty and staff of 5,300 includes 900 practicing clinicians. Thomas Jefferson CIO Doug Henrick said Microsoft's willingness to jointly develop a BAA, and the fact that it guaranteed to maintain all student data within the U.S., gave it the edge over Google when it came to choosing a cloud-based email and collaboration platform. <P> "A key deciding factor for TJU was that Office 365 helps enable us to be HIPAA compliant. With Google, we would have never have known where our intellectual property and records were stored," said Henrick in a statement. "Microsoft had the willingness to understand our business and be transparent about how it handles security and privacy." <P> Microsoft officials said the universities' efforts show that HIPAA requirements extend well beyond the healthcare industry. <P> "U.S. healthcare information spans numerous industries and agencies. This makes it essential that we work with healthcare providers and our customers to protect healthcare consumers' and students' data, and it starts with making sure our products are built from the ground up with privacy by design," said Cameron Evans, chief technology officer for Microsoft Education. <P> Microsoft recently unveiled pricing and special offers for a version of Office 365 suite that's aimed at college and university students. <P> Higher education students can subscribe to Office 365 University, which rolls out in the first quarter, for a four-year subscription priced at $79.99. That, as <a href="http://blogs.office.com/b/office-news/archive/2012/10/19/office-365-university-for-higher-education-students.aspx">Microsoft points out</a>, works out to $1.67 per month. Students who enter graduate programs, or just take longer than planned to complete a four-year degree, can renew for an additional four years at the same price. <P> Documents created or saved in Office 365 University are automatically saved to Microsoft's <a href="http://www.informationweek.com/tech-center/backup-recovery/microsoft-skydrive-cloud-gets-big-overha/240005484">SkyDrive storage service</a>. The price includes 27 GB of storage. It also allows users to install Office University 365 on up to two devices. It can also be streamed to other devices when users are away from their own PC. <P> Office 365 University includes access to online versions of Word, PowerPoint, OneNote, Outlook, Publisher and Access. Students who purchase Office University 2010 for Windows, or Office University 2011 for Mac, both of which are priced at $100, get access to Office University 365 for free. The pricing structure mirrors that of the consumer version of Office, which also offers free cloud apps when purchased. <P> Office 365 University is available to higher-education students, faculty, and staff. After purchasing, buyers must verify their academic credentials online. Those purchasing the software from a Microsoft store can verify before buying.2013-01-08T11:01:00ZMicrosoft's tablet OS can be fooled into running full-blown Windows 8 and legacy applications, hacker reveals.http://www.informationweek.com/software/operating-systems/windows-rt-hacked-to-run-desktop-apps/240145728?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/windows/reviews/top-10-tech-fails-of-2012/240145329"><img src="http://twimgs.com/informationweek/galleries/automated/932/TechFail1stslide_tn.png" alt="Top 10 Tech Fails Of 2012 " title="Top 10 Tech Fails Of 2012 " class="img175" /></a><br /> <div class="storyImageTitle">Top 10 Tech Fails Of 2012 </div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> A hacker has developed a "deep in the kernel" workaround that lets users run full-blown Windows applications on tablets and hybrids that use Windows RT -- a trimmed down version of Windows 8 that's only meant to run mobile apps downloaded from Microsoft's Windows Store or those preinstalled by Redmond. <P> In <a href="http://surfsec.wordpress.com/2013/01/06/circumventing-windows-rts-code-integrity-mechanism/">a blog post</a>, the hacker -- who uses the name clrokr -- disclosed the exploit. "It's taken longer than expected but it has finally happened: Unsigned desktop applications run on Windows RT," clrokr wrote. <P> Windows RT devices were released on Oct. 26 of last year, alongside Windows 8. The devices all run processors based on the ARM mobile reference design, which until now, rendered them incompatible with regular Windows applications. ASUS, Lenovo and other vendors have all shipped Windows RT tablets, as has <a href="http://www.informationweek.com/hardware/desktop/microsoft-surface-rt-best-tablet-ever-re/240144582">Microsoft itself with Surface RT</a>. <P> <strong>[ See our <em>BYTE</em> colleague Larry Seltzer's opinion on this topic: <a href="http://www.informationweek.com/byte/personal-tech/jailbreak-windows-rt-why-beats-me/240145678">Jailbreak Windows RT -- Why? Beats Me</a>. ]</strong> <P> Clrokr said Windows RT inherited a flaw from Windows 8 that makes the workaround possible. "Ironically, a vulnerability in the Windows kernel that has existed for some time and got ported to ARM just like the rest of Windows made this possible," wrote the hacker. <P> "MSFT's artificial incompatibility does not work because Windows RT is not in any way reduced in functionality. It's a clean port, and a good one," said clrokr. <P> Windows 8 and Windows RT systems come with a <a href="http://www.informationweek.com/windows/microsoft-news/windows-8-secure-boot-fears-continue/231901229">security feature called Secure Boot</a>, which ensures that applications are authorized to run before they are launched. Secure Boot is more permissive on Windows 8, while on Windows RT it's configured so devices that use the OS can only run apps authorized by Microsoft. <P> clrokr said that a hack (which would be well beyond the capabilities of most users) essentially tricks Windows RT systems into running applications they aren't supposed to launch. "Finding this byte in the kernel takes awhile, there is no exported symbol for it and not even in the symbol database at MSFT," wrote clrokr. "I found it using WinDbg [Windows Debugger] and a machine running Windows 8 Pro." <P> clrokr admitted that the hack is not for the faint of heart, and that it carries some risks. At times it can trigger a Windows bug check, and the method "is not practical for most users, especially because tablet buyers are less likely to know enough about computers to do this than PC users." <P> In a statement, Microsoft said it does not consider the hack to be a major security threat because it is beyond the reach of most users, but added that it may take steps to eliminate it in future updates to Windows RT. <P> <i>Tech spending is looking up, but IT must focus more on customers and less on internal systems. Also in the all-digital <a href="http://www.informationweek.com/gogreen/121012/?k=axxe&cid=article_axxt_os">Outlook 2013</a> issue of InformationWeek: Five painless rules for encryption. (Free registration required.)</i>2013-01-08T09:10:00ZAt CES 2013, Intel shows it won't let longstanding partnership with Microsoft stand in the way of growth.http://www.informationweek.com/hardware/processors/intel-hedges-bets-gets-cozy-with-android/240145725?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/hardware/handheld/ces-2013-9-cool-gadgets/240145563"><img src="http://twimgs.com/informationweek/galleries/automated/933/CESLogo_tn.jpg" alt="CES 2013: 9 Cool Gadgets" title="CES 2013: 9 Cool Gadgets" class="img175" /></a><br /> <div class="storyImageTitle">CES 2013: 9 Cool Gadgets</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> It seems Intel and Microsoft have always been joined at the hip, like Batman and Robin, Fred and Ginger, or Lindsay and vodka. But with the so-called Wintel monopoly a thing of the past, the partnership is under strain. Microsoft last year broke ranks when it tapped ARM chipmakers for some Windows 8 devices, including Surface RT. Now it's Intel's turn. At CES on Monday, the company left little doubt that it's betting much of its future on Google's Android OS. <P> "We've worked very closely with Google to create a highly optimized version of Android for our platforms," said Mike Bell, general manager of Intel's mobile and communications group, during a CES presentation. "We even included some Intel-developed technology that lets the majority of Android applications just run, no matter what platform they were created for." <P> Intel used the <a href="http://www.informationweek.com/hardware/handheld/ces-2013-9-cool-gadgets/240145563">annual desert tech fest</a> to announce a new generation of Atom chips that will be aimed at what it sees as a huge, untapped market -- low cost, but fully featured smartphones. Its new Atom Z2420, or "Lexington" platform, is targeted at emerging markets abroad and eventually at value markets in the United States. Bell said demand for such devices could reach 500 million units by 2015. "It's one of the fastest growing segments in the mobile device world," said Bell. <P> But Bell said buyers in that market won't be satisfied with hand me downs. So Intel designed Lexington to support numerous features, like video, fast graphics and multitasking, that until now have been reserved for pricier phones. To that end, Lexington supports hyper-threading, can hit speeds of up to 1.2 GHz, and supports 1080p HD video, as well as dual cameras. <P> "The emerging-market customers shouldn't have to settle for a substandard experience. We think that smartphones have become an enabling technology that should be within everyone's reach," said Bell. <P> <b>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross">suggests it's likely</a>. ]</b> <P> Bell showed off Lexington's capabilities by using a 3.5-inch reference phone built on the chip to snap off seven photos in less than a second. "That's pretty much it," said Bell, who launched and concluded the demo before most of the audience realized what was happening. "It has the horsepower you need to drive Android applications in a really fantastic way," said Bell. <P> Of course, for a phone to pack that kind of horsepower while remaining within the value segment means it can't carry much in the way of additional costs beyond hardware. It can't, for instance, run an OS that requires the manufacturer to pay a fat licensing fee to the developer. That is to say, it can't run Windows Phone. <P> Even a low-end Windows 8 smartphone like <a href="http://www.informationweek.com/mobility/smart-phones/lumia-710-review-nice-but-no-windows-pho/232301361">the Nokia Lumia 710</a> is still going for about $190, unlocked. <P> Intel wants into the high-volume, value market in which devices could go for less than $100, and that means Android, which held 53.7% of the U.S. smartphone market as of November, compared to just 3% for Microsoft, according to ComScore. Acer, India's Lava and African carrier Safaricom have all committed to building or carrying Android phones based on Lexington when it becomes available later this year, said Bell. <P> Make no mistake -- Intel isn't about to abandon Microsoft. Windows still represents, by far, the largest OS installed base for Intel chips. And at CES, the company talked up "<a href="http://www.informationweek.com/byte/personal-tech/intel-haswell-599-touch-ultrabooks-in-20/240145717">Haswell</a>," the fourth-generation Core processor that will add more horsepower and new capabilities, such as all-day battery life, to <a href="http://www.informationweek.com/hardware/desktop/6-reasons-to-want-windows-8-ultrabooks/240012634">Windows 8 Ultrabooks</a>. <P> This is merely to say that Intel has finally recognized that if it wants to be a legit player in mobile computing, alongside rivals like Nvidia and Qualcomm, it too must jump on the Android bandwagon, protestations from Microsoft be damned. It took CEO Paul Otellini too long to recognize this, and that may be part of the reason why he is <a href="http://www.informationweek.com/hardware/processors/otellini-exits-intel-with-windows-8-fate/240142378">stepping down</a>. But CES 2013 shows that the chipmaker may now be headed in the right direction.2013-01-07T12:00:00ZLenovo shows off 39-inch tablet behemoth and 11-inch mini-notebook at CES 2013.http://www.informationweek.com/hardware/desktop/ces-2013-lenovo-bets-big-on-windows-8/240145672?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --><div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/smb/hardware-software/windows-8-8-big-benefits-for-smbs/240142263"><img src="http://twimgs.com/informationweek/galleries/automated/907/01_windows8pro_tn.jpg" alt="Windows 8: 8 Big Benefits For SMBs" title="Windows 8: 8 Big Benefits For SMBs" class="img175" /></a><br /><div class="storyImageTitle">Windows 8: 8 Big Benefits For SMBs</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div><!-- /KINDLE EXCLUDE -->Lenovo previewed a trio of Windows 8 systems at CES that showed the operating system's versatility and flexibility -- a pair of coffee-table sized tablets along with one of the smallest Win8 hybrids in production. <P> Lenovo branded its 27-inch IdeaCentre Horizon Tablet PC as its first "interpersonal" personal computer. Lenovo said its tabletop size makes it ideal for multi-user applications such as collaboration and gaming. <P> "We've seen technology shifts across the four screens, from the desktop to the laptop, tablet, and smartphone, and yet, while people have more computing power than ever before, there is still room for technologies like Horizon that bring people together," said Peter Hortensius, president of Lenovo's products group, in a statement. <P> <strong>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross ">suggests it's likely</a>. ]</strong> <P> "Now many people can enjoy different photos, music and video on the same screen, and they can play games with our special accessories that blend physical and digital interaction. Horizon reflects our commitment to delivering the innovative products that define the PC Plus era," said Hortensius. <P> The Horizon comes with customized entertaining and gaming apps from Ubisoft and Electronic Arts. It can be used as a tablet, and it also converts to traditional laptop mode, with keyboard. The system also provides users with access to the Lenovo App Shop, which offers more than 5,000 multi-user entertainment apps. <P> Lenovo said the IdeaCentre Horizon will be available in "early summer," starting at about $1,699. <P> Not content at 27 inches, Lenovo also demonstrated a concept system called Gamma -- a 39-inch gargantuan that Lenovo said "illustrates the outstanding multi-user experiences such a large screen can provide and is indicative of Lenovo's future direction in tablet PC computing." <P> Also at CES, which is <a href="http://www.informationweek.com/mobility/smart-phones/ces-2013-new-smartphones-on-deck/240145460">this week in Las Vegas</a>, Lenovo showed off the IdeaPad Yoga 11S. Cousin to the Yoga 11, the 11S runs full-blown Windows 8 as opposed to <a href="http://www.informationweek.com/hardware/handheld/samsung-plans-windows-8-rt-tablet/240003525">Windows RT</a>. It also features an Intel Core processor, which means it's fully compatible with new and legacy Windows software. <P> The system features an HD display at 1366 pixels by 768 pixels, Dolby Home Theater Audio and 256GB of Flash storage. Lenovo said it expects the Yoga 11S to be available in June, starting at $799. <P> Lenovo, meanwhile, is now taking orders for its ThinkPad Tablet 2, a Windows 8 convertible based on Intel's new "Clover Trail" Atom chip. Like many Clover Trail-based systems, the tablet did not become available until several weeks after Windows 8's debut. <a href="http://www.informationweek.com/hardware/handheld/dell-hp-windows-8-atom-tablets-delayed-u/240145002">PC makers are having trouble</a> building Clover Trail drivers that are stable enough to pass Microsoft's Windows Hardware Quality Labs (WHQL) testing, sources have said. <P> Lenovo was promising a ship date of Jan. 13 for Tablet 2 orders placed as of Monday. <P> <i>Attend <a href="http://www.onlinemarketingsummit.com/sandiego?_mc=WETW01">Online Marketing Summit San Diego</a>, Feb. 11-13, and gather the insights and strategies you need to make the right online marketing choices to deliver the most value for your business. OMS San Diego offers three days of inspiration, connections, and practical learning. Register by Jan. 11 with code WETW01 and save up to $600 on All Access or Conference passes. </i>2013-01-04T13:42:00ZTax deal should bolster economy, but automatic spending cuts that could go into effect in March loom over tech industry.http://www.informationweek.com/hardware/desktop/fiscal-cliff-still-a-threat-to-it-spendi/240145599?cid=SBX_iwk_related_commentary_Enterprise_Applications_softwareGartner and Forrester on Thursday released their annual predictions for IT spending in the year ahead. Both firms noted that this week's partial resolution of the so-called fiscal cliff crisis would help the industry toward modest growth in 2013. But another analyst said on Friday that the threat's not over. <P> Cindy Shaw, of Discern, told clients in a research note that the end of the payroll tax holiday, which means most Americans, even those making less than the $400,000 specified in the Congressional budget deal, will see a tax increase, combined with the possibility of looming federal spending cuts, could still put a drag on tech spending in the year ahead. <P> Shaw cited the fact that Congress failed to extend the payroll tax holiday, as well as the fact that automatic spending cuts might still kick in on March 1st unless Congress strikes another deal. The cuts, also known as sequestration, could affect thousands of government programs, many of them involving IT. <P> "Due to another two months of uncertainty about federal spending cuts and higher taxes for most Americans effective January 1st, we expect economic growth to slow early in 2013," Shaw wrote. "This should add to recent pressure on IT spending and negatively impact guidance on upcoming earnings calls. We do not view any IT company as immune." <P> <strong>[ Michael Dell discusses the company's future strategies in services, software, devices, and more. Read <a href="http://www.informationweek.com/hardware/desktop/michael-dell-our-transformation-is-compl/240144292?itc=edit_in_body_cross">Michael Dell: Our Transformation Is Complete</a>. ]</strong> <P> Among the tech heavyweights expected to announce earnings later this month are Microsoft (Jan. 24) and IBM (Jan. 22). Shaw said she believes IBM is "best positioned to weather a weak economy" due to its strong presence in emerging markets like China, where she believes enterprise spending is recovering, as well as its focus on high-margin products like enterprise software. <P> Shaw added that she thinks Dell, which reports earnings on Feb. 19, is among the tech vendors "most exposed" to a downturn. "Positive services developments cannot overcome negative hardware trends at Dell in the near term," Shaw wrote. <P> On Thursday, both Gartner and Forrester published their <a href="http://www.informationweek.com/hardware/desktop/it-spending-to-see-modest-growth-in-2013/240145523">2013 IT spending forecasts</a>. <P> Gartner predicts spending to increase 4.2% compared to 2012, to $3.7 trillion, or 3.9% when the effects of changes in exchange rates are excluded. Forrester is calling for a 5.4% uptick in worldwide IT spending in 2013, to $1.8 trillion, or a 3.3% gain excluding exchange rate shifts. Unlike Gartner, Forrester does not include spending on telecom products and services in its forecasts. <P> The product category poised for the most growth, according to Gartner, is devices, which includes PCs, tablets, and smartphones. Worldwide spending on such products will increase 6.6%, to $666 billion, the firm predicts. Gartner previously predicted that the category would grow 7.9% this year, but the increasing popularity of low-cost tablets -- at the expense of pricier PCs -- led it to lower its forecast. <P> Forrester predicted that Apple will outpace other device makers, estimating that the company's enterprise Mac sales will total $7 billion this year while <a href="http://www.informationweek.com/hardware/handheld/new-ipad-and-enterprise-it-exclusive-res/232602699">enterprise iPad sales</a> will hit $11 billion. <P> The Dow Jones Industrial Average was up 23.95 points in afternoon trading Friday, while the Nasdaq was up .47 points. <P> <i>Tech spending is looking up, but IT must focus more on customers and less on internal systems. Also in the new, all-digital <a href="http://www.informationweek.com/gogreen/121012/?k=axxe&cid=article_axxt_os">Outlook 2013</a> issue of InformationWeek: Five painless rules for encryption. (Free registration required.)</i>2013-01-04T12:36:00ZOutlays on personal devices and enterprise software expected to lead global recovery in IT market, according to forecasts from Gartner and Forrester.http://www.informationweek.com/hardware/desktop/it-spending-to-see-modest-growth-in-2013/240145523?cid=SBX_iwk_related_commentary_Enterprise_Applications_softwareGlobal spending on IT products and services should grow in the low- to mid-single digits over the next 12 months, according to forecasts published Thursday. <P> Gartner predicts spending to increase 4.2% compared to 2012, to $3.7 trillion, or 3.9% when the effects of changes in exchange rates are excluded. Forrester is calling for a 5.4% uptick in worldwide IT spending in 2013, to $1.8 trillion, or a 3.3% gain excluding exchange rate shifts. Unlike Gartner, Forrester does not include spending on telecom products and services in its forecasts. <P> Analysts at both firms said the end of uncertainty related to the <a href="http://www.informationweek.com/predictive-analytics-and-the-fiscal-clif/240143958">so-called fiscal cliff</a> helped ensure at least modest growth for the IT industry this year. <P> The product category poised for the most growth, according to Gartner, is devices, which includes PCs, tablets and smartphones. Worldwide spending on such products will increase 6.6%, to $666 billion, the firm predicts. Gartner previously predicted that the category would grow 7.9% this year, but the increasing popularity of low-cost tablets -- at the expense of pricier PCs -- led it to lower its forecast. <P> <strong>[ Big data has value that's often not reflected in the books. Read more at <a href="http://www.informationweek.com/big-data/news/big-data-analytics/whats-your-big-data-worth/240144449?itc=edit_in_body_cross">What's Your Big Data Worth?</a> ]</strong> <P> "The tablet market has seen greater price competition from <a href="http://www.informationweek.com/security/attacks/attack-turns-android-devices-into-spam-s/240144988">Android devices</a> as well as smaller, low-priced devices in emerging markets," said Gartner managing VP Richard Gordon. "It is ultimately this shift to relatively lower-priced tablets that lowers our average selling prices forecast." <P> Forrester predicted that Apple will outpace other device makers, estimating that the company's enterprise Mac sales will total $7 billion this year while <a href="http://www.informationweek.com/hardware/handheld/new-ipad-and-enterprise-it-exclusive-res/232602699">enterprise iPad sales</a> will hit $11 billion. <P> Gartner also sees solid growth for enterprise software (6.4%), as companies bulk up on security, storage management and CRM software. Robust spending in trendy areas such as big data and enterprise content management software won't kick in until 2014, Gartner predicted. <P> <center><img src="http://twimgs.com/informationweek/1354/1_03_chart_2.gif" width="540" height="363" alt="chart: Key Markets Poised For Growth" hspace="0" vspace="0" border="0" style="margin-bottom:7px;" /><br /></center></p> <P> Regionally, Europe, Middle East and Africa (EMEA) will lead, as tech spending in Eastern Europe, the Middle East and Asia is expected to increase 8.9% year over year in 2013. Growth in the U.S. is expected to come in at a solid 7.5%, according to Forrester. Growth in Latin America is seen at 6.4%, Asia Pacific at 4% and just 0.8% for Western and Central Europe, as debt-laden countries such as Greece and Spain drag down the region. <P> Forrester principal analyst Andrew Bartels said the Congressional deal that extended the Bush tax cuts for those making less than $450,000 a year helped the U.S. numbers. "Two-thirds of the risk of a recession has been removed," said Bartels. "We still have concerns about spending cuts and the debt ceiling, but we've gotten past the biggest concern." <P> <center><img src="http://twimgs.com/informationweek/1354/1_03_chart_1.gif" width="540" height="260" alt="chart: Devices Not Telecom" hspace="0" vspace="0" border="0" style="margin-bottom:7px;" /><br /></center></p> <P> Within the U.S. market, Bartels expects to see a strong increase in spending on IT services, and on software related to mobility, analytics and collaboration. More-traditional enterprise software, such as ERP, CRM and database products, will see "more mundane growth rates" in the mid-single digits, said Bartels. <P> The weakest category, telecom services, is expected to grow just 2.4% in 2013, according to Gartner. <P> <i>Tech spending is looking up, but IT must focus more on customers and less on internal systems. Also in the new, all-digital <a href="http://www.informationweek.com/gogreen/121012/?k=axxe&cid=article_axxt_os">Outlook 2013</a> issue of InformationWeek: Five painless rules for encryption. (Free registration required.)</i>2013-01-03T10:19:00ZBuyout of Brad Krikorian's id8 Group R2 Studios would fit with Microsoft's goal of becoming center of the digital home.http://www.informationweek.com/windows/microsoft-news/microsoft-looks-to-acquire-home-automati/240145476?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/cloud-computing/software/take-skydrive-for-a-test-drive/240005958"><img src="http://twimgs.com/informationweek/galleries/automated/854/01_Intro_tn.jpg" alt="Microsoft SkyDrive Vs. Dropbox, Google: Hands-On" title="Microsoft SkyDrive Vs. Dropbox, Google: Hands-On" class="img175" /></a><br /> <div class="storyImageTitle">Microsoft SkyDrive Vs. Dropbox, Google: Hands-On</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> Microsoft has reportedly inked a deal to acquire home automation software specialist id8 Group R2 Studios Inc. <P> id8, founded in 2011 by well-known Silicon Valley entrepreneur Blake Krikorian, develops apps that let users control their home entertainment, lighting, security and other in-house systems from a mobile device. Its $99 R2 Control for Crestron app, for instance, gives users control over systems integrated into a Crestron control panel from an Android Phone. <P> The deal was <a href="http://online.wsj.com/article/SB10001424127887324374004578218091764714864.html">reported Wednesday</a> by <em>The Wall Street Journal</em>, and was unconfirmed by Microsoft as of early Thursday. Financial details were not reported. The newspaper also reported that Apple and Google also were in talks to acquire id8. <P> Krikorian is best known as the founder of Sling Media, the creator of the mobile TV controller Slingbox. Sling was sold to EchoStar in 2007. Krikorian was also, until late December, a member of Amazon's board. In a sign that a move was afoot, Amazon recently filed a document with the Securities and Exchange Commission that indicated Krikorian was stepping down. <P> "On December 26, 2012, Blake Krikorian informed Amazon.com, Inc. that he was resigning from the Board of Directors effective immediately," Amazon reported in an 8-K filing. The filing indicates that Krikorian may be set to join Amazon rival Microsoft. The <em>Journal</em> reported that Krikorian would bring a small team to Redmond. Amazon and Microsoft compete in cloud services and in the tablet hardware market. <P> <strong>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross ">suggests it's likely</a>. ]</strong> <P> id8's software would fit with Microsoft's goal of making its products the center of the digital home. Through its <a href="http://www.informationweek.com/software/windows8/microsoft-launches-music-service-for-xbo/240009021">Xbox 360 and Xbox Live</a> products, Microsoft's customers can play games, stream movies and TV shows, communicate with each other through chat and IM and conduct Web searches. id8's apps could extend the company's footprint into home automation products that let users control heat, light, security and other systems from virtually anywhere. Such systems also have applications in the commercial real estate market. <P> An obvious first step if the deal is completed would be for id8 to develop apps for Windows Phone 8 smartphones and Windows 8 tablets, both of which need more apps if they're to successfully go head to head with Apple and Android devices. Microsoft, which has signaled its intention to become <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950">a bigger player in hardware</a>, could also build remote control devices around id8's software.2013-01-03T09:33:00ZAzure enhancements leave Microsoft well positioned against cloud competitors in 2013, analyst says.http://www.informationweek.com/windows/microsoft-news/microsoft-tries-to-outflank-amazon-with/240145474?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- Image Aligning Right --> <div class="inlineStoryImage inlineStoryImageRight"> <a href="http://www.informationweek.com/cloud-computing-comparisons/paas-providers/" target="_blank"><img src="http://twimgs.com/informationweek/buyers-guide/paas/promo/PaaSpromo_01.jpg" alt="Cloud Computing Comparison: PaaS Providers" title="Cloud Computing Comparison: PaaS Providers" class="img175" /></a> <div class="storyImageCaption">Click above for detailed features matrixes on PaaS vendors</div> </div> <!-- / Image Aligning Right --> Microsoft's move to add infrastructure and enhanced virtual machine support to its Azure platform gives its cloud offering the ability to match Amazon's infrastructure-as-a-service (IaaS) product while still providing customers with richer platform-as-a-service (PaaS) options, according to one analyst who believes Microsoft is well positioned to gain cloud momentum in 2013. <P> "We remain positive on Azure, due to its high compatibility with existing enterprise software," said Mark Moerdler, senior software analyst at Bernstein Research, in a note published Wednesday. <P> Microsoft last year launched a Community Technology Preview of persistent-state <a href="http://www.informationweek.com/windows/microsoft-news/microsoft-azure-in-2012-watch-out-amazon/232301231">Virtual Machine support for Azure</a>, effectively creating a hypervisor in the sky that lets enterprises upload VMs running Linux, SharePoint, SQL Server or other "stateful" applications. The move expanded the capabilities of Azure, which Microsoft had always positioned as a PaaS offering, into the IaaS realm. <P> <strong>[ Will 2013 be a good year for Microsoft? Read <a href="http://www.informationweek.com/software/windows8/6-things-microsoft-must-do-in-2013/240145370">6 Things Microsoft Must Do In 2013</a>. ]</strong> <P> Under the PaaS model, customers' apps and services run on a cloud stack that's preconfigured by the vendor, while IaaS provides customers with basic infrastructure, on top of which they can build their own stacks and services while maintaining more management responsibility over the setup. <P> Moerdler said in an interview that Microsoft is now able to offer customers the best of both worlds, which could entice more enterprises to its cloud services. "With Azure, they can run VMs, but they can do more than that, in that they can allow you to be able to step up to a more cloud-based solution," said Moerdler. <P> Moerdler defines a truly cloud-based solution as one that uses a multi-tenant architecture. The difference between multi-tenant and simple virtualization is, generally, that in the former scenario a single instance of an application services multiple clients, while in the latter multiple instances of an app are run across virtual machines. Multi-tenant architectures are thought by many experts to be more robust and scalable than virtualized setups. <P> Azure "is competing against Amazon Web Services in Infrastructure-as-a-Service in terms of virtualization, but they give you this opportunity of saying you can go and become a truly cloud-based model if you so desire," said Moerdler, who rates Microsoft shares as "Outperform". <P> Moerdler believes Azure also holds another, potentially significant advantage over AWS, as well as over competing PaaS providers such as Oracle and <a href="http://www.informationweek.com/cloud-computing/platform/heroku-adds-database-service-that-scales/240009994">Salesforce's Heroku</a> -- its native compatibility with Microsoft's on-premises products like <a href="http://www.informationweek.com/windows/microsoft-news/windows-server-2012-hardware-makers-join/240006765">Windows Server 2012</a> and SQL Server. That should, theoretically at least, make it easier for Microsoft-centric enterprises to move operations to the cloud when they so choose. <P> "Most apps can be moved to Azure fairly easily initially in a VM and then expanded, adding cloud functionality later," said Moerdler, who co-founded records management specialist MDY Advanced Technologies prior to joining Bernstein. <P> Microsoft hosts Azure at eight, company-owned data centers located around the world. To further bolster its cloud, Microsoft in December added job scheduler support for Windows Azure Mobile Services, improved scaling for Azure website services and support for SQL Data Sync Services from within the Azure Management Portal. <P> More Azure rollouts are expected throughout 2013.2013-01-02T12:21:00ZIn annual report filed with SEC, tech giant says it's considering divesture of businesses that don't fit with its long-term plans. Will CEO Whitman stick with the PC business?http://www.informationweek.com/hardware/desktop/hps-pc-services-units-under-scrutiny/240145415?cid=SBX_iwk_related_commentary_Enterprise_Applications_softwareHewlett Packard said it may divest business units or assets that no longer fit with its long-term objectives, a sign that CEO Meg Whitman may be looking to streamline the struggling tech titan's operations. In its annual report, filed with the Securities Exchange Commission, HP said, "We also continue to evaluate the potential disposition of assets and businesses that no longer help us meet our objectives." <P> In the document, filed on Friday just before the New Year's break, HP added, "When we decide to sell assets or a business, we may encounter difficulty finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives." <P> HP did not specify which units could be on the block, nor has it commented further on the filing, but its recent financial maneuverings provide strong indications. <P> The company's Enterprise Services, or outsourcing, unit could be under scrutiny. Last August, HP announced that <a href="http://www.informationweek.com/software/information-management/hp-takes-8-billion-hit-as-consulting-bus/240005170">the unit's performance was so poor</a> that the company would write down its value by $8 billion in third quarter of 2012. At the same time, HP announced that then Enterprise Services chief John Visentin would be leaving the company. <P> HP's Enterprise Services unit mainly comprises assets the company acquired through its <a href="http://www.informationweek.com/services/outsourcing/hp-closes-139-billion-eds-acquisition/210200744">$13.9 billion acquisition</a> of Plano, Texas-based Electronic Data Systems in 2008. <P> <b>[ Will PCs be able to see, touch, and smell in five years? <a href="http://www.informationweek.com/hardware/supercomputers/ibm-pcs-by-2018-will-see-hear-touch/240144501?itc=edit_in_body_cross">See why IBM thinks so</a>. ]</b> <P> The deal was supposed to put HP into IT Services' big leagues and make it a legitimate challenger to market leader IBM. But it never lived up to expectations. <P> Beyond a handful of high-profile customer wins, the most notable being Procter & Gamble, the deal failed to make HP a services juggernaut along the lines of Big Blue. HP's services revenues fell 2%, year over year, to $35 billion in the company's most recent fiscal year. <P> Another unit that could be up for grabs is HP's Personal Systems group, which sells PCs, tablets and other end-user devices. That group's revenues fell 10% in the most recent fiscal year, to $35.7 billion. It, along with the rest of the PC industry, has been hit hard by consumers and business road warriors' embrace of non-Windows tablets and smartphones. <P> HP and other Microsoft partners are <a href="http://www.informationweek.com/windows/microsoft-news/microsoft-windows-8-unification-plan-gra/232600242">betting on Windows 8</a> to help reverse the trend, but early sales of devices powered by Redmond's new OS are said to be slow. <P> HP's PC business has been on the block previously. Former CEO Leo Apotheker said last August that he would seek a buyer for the unit, and shut down all of the company's WebOS efforts. HP gained WebOS through its $1.2 billion acquisition of Palm in 2010. Apotheker planned to use it as a PC operating system along with Windows before deciding to axe the PC unit. HP's board fired him last September after losing faith in his strategy, replacing him with Whitman. <P> HP shares were up more than 5% in morning trading Wednesday. <P> <i>Cloud computing, virtualization and the mobile explosion create computing demands that today&#8217;s servers may not meet. Join Dell executives to get an in-depth look at how next-generation servers meet the evolving demands of enterprise computing, while adapting to the next wave of IT challenges. <a href="https://www.techwebonlineevents.com/ars/eventregistration.do?mode=eventreg&F=1005372&K=EOA">Register for this Dell-sponsored webcast now</a>.</i>2013-01-02T09:12:00ZThis could be a make or break year as Microsoft looks to establish itself in mobile, cloud and other hot new markets.http://www.informationweek.com/software/windows8/6-things-microsoft-must-do-in-2013/240145370?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- Image Aligning Right --> <div class="inlineStoryImage inlineStoryImageRight"> <a href="http://www.informationweek.com/cloud-computing-comparisons/paas-providers/" target="_blank"><img src="http://twimgs.com/informationweek/buyers-guide/paas/promo/PaaSpromo_01.jpg" alt="Cloud Computing Comparison: PaaS Providers" title="Cloud Computing Comparison: PaaS Providers" class="img175" /></a> <div class="storyImageCaption">Click above for detailed features matrixes on PaaS vendors</div> </div> <!-- / Image Aligning Right --> The past 12 months were challenging ones for Microsoft. The company launched Windows 8, but early sales are said to be modest at best. Windows Phone 8 also arrived last year, but Redmond's share of the smartphone market remains stuck at less than 4%. Meanwhile, the company continues to push into new markets like cloud, hardware and online entertainment with mixed success. <P> But don't count out Redmond just yet. Microsoft remains the world's biggest software company, it's got a deep management bench, and it's cash rich. Here are some moves the company can make this year to boost its fortunes. <P> <b>1. Client:</b> Some people love Windows 8, others not so much. Microsoft needs to acknowledge the mixed feelings by giving users the option of booting into the more familiar Windows Explorer environment instead of Metro. Some third-party tools, such as Win8StartButton, have emerged that let users do just that. But Microsoft needs to step in with official support. <P> The company also needs to put some of its cash to work enticing developers to build <a href="http://www.informationweek.com/software/windows8/8-cool-windows-8-apps-8-or-less/240142429">more Windows 8 apps</a>, even if at its own expense. Many big content and service providers, including Facebook and Twitter, are on the sidelines when it comes to Windows 8. Microsoft needs to court them more aggressively. <P> <b>2. Hardware:</b> 2012 saw Microsoft take its first real plunge into the PC hardware business, with the release of the Surface RT tablet and the upcoming Surface Pro. But the early word is that <a href="http://www.informationweek.com/windows/microsoft-news/microsoft-mum-on-surface-tablet-sales/240115303">Surface RT sales are slow</a>. One factor is undoubtedly price. At $499, Surface RT costs the same as the entry-level new iPad. Microsoft needs to recognize that establishing a new brand takes some sacrifices, including profits. <P> <b>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross ">suggests it's likely</a>. ]</b> <P> Surface RT would be better priced at about $399, $100 less than the new iPad, but still two hundred bucks more than Amazon's Kindle Fire HD. Even if that makes it a loss leader for Microsoft, it's well worth it if it gets the device into more users' hands. <P> <b>3. Services:</b> With software becoming a commodity and Microsoft's hardware plans still nascent, the company needs to steal a page from IBM's playbook and build out its services arm. It primarily plays in the market through its equity stake in Avanade, which is majority-owned by Accenture. But it needs to build out its own offerings to compensate for what will surely be declining Windows revenues in the coming years. <P> Enterprises may be supporting more and more non-Microsoft products on the front end, but they'll still need help tying it all together on the back end and integrating in-house and cloud services. It's potentially a huge opportunity that Microsoft needs to cash in on, even if means making an acquisition. Accenture itself might be a logical target. <P> <b>4. Cloud:</b> Microsoft needs to make Azure a more compelling environment for mission-critical enterprise applications and services while reducing migration hassles. To its credit, it's evolving Windows Azure from platform-as-a-service (PaaS) To infrastructure-as-a-service (IaaS). Earlier last year, it added persistent-state virtual machine support to Azure, allowing it to accommodate a wider variety of software, including Linux. Microsoft also introduced Hadoop for Azure and support for MapReduce. <P> In late December, Microsoft added job scheduler support for Windows Azure Mobile Services, and improved scaling for Azure website services and support for SQL Data Sync Services from within the Azure Management Portal. In 2013, it needs to further its build out of its cloud platform to keep it competitive with Amazon EC2, <a href="http://www.informationweek.com/cloud-computing/infrastructure/ibm-att-team-on-secure-cloud-services/240008772">IBM's SmartCloud</a> and other cloud services. <P> <b>5. Big Data:</b> When it comes to big data, IT's latest megatrend, Microsoft isn't thought of in the same breath as Oracle, with its Exadata Machine, or IBM and its Netezza line. Yet its own Bing search engine, which runs on Windows Server 2012, routinely crunches more than 100 petabytes of data to yield search results. Microsoft also recently began supporting the Apache Hadoop open source framework for distributed big data processing. And it's got powerful front-end tools like PowerPivot for Excel and SQL Server Analysis and Reporting Services. <P> With opportunities on the client side declining, the company needs to get more aggressive about packaging and marketing these solutions. Dedicated hardware, along the lines of IBM's Netezza Data Warehouse Appliance, would be a good step. <P> <b>6. Xbox:</b> Windows' declining cachet in the consumer market hasn't affected Microsoft's Xbox franchise. The platform is going stronger than ever, as 2012 saw the introduction of hits like Assassin's Creed 3 and Halo 4, while the <a href="http://www.informationweek.com/windows/microsoft-news/microsoft-pushes-kinect-beyond-gaming/231902014">Kinect hands-free motion controller</a> has won critical acclaim. <P> The company needs to inject some of Xbox's life into other product lines, such as smartphones, that have yet to catch on with consumers. With Windows Phone 8 struggling to find a niche, a good place to start would be an Xbox-branded smartphone, or a smartphone based on an Xbox blockbuster franchise like Halo. <P> What else do you think Microsoft needs to do in 2013 to recapture its mojo? Let me know in the comments section below.2012-12-21T10:23:00ZHTC 7-inch tablet could pit Microsoft's Windows 8 OS against Amazon's Kindle Fire and Apple's iPad mini.http://www.informationweek.com/hardware/handheld/htc-prepping-windows-8-rival-to-ipad-min/240145199?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/windows/microsoft-news/8-cool-windows-8-tablets-for-home-and-of/240010621"><img src="http://twimgs.com/informationweek/galleries/automated/889/01_Intro_tn.jpg" alt="8 Cool Windows 8 Tablets For Home And Office" title="8 Cool Windows 8 Tablets For Home And Office" class="img175" /></a><br /> <div class="storyImageTitle">8 Cool Windows 8 Tablets For Home And Office</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> Taiwanese computer maker HTC next year plans to release a pair of tablets running Microsoft's Windows 8 operating system, including a 7-inch model that could be aimed squarely at the iPad Mini and Amazon's Kindle Fire, according to a published report. <P> Bloomberg, citing an unnamed source, reported that both models will run Windows RT, a pared down version of Windows 8 that only runs apps preinstalled by Microsoft--including <a href="http://www.informationweek.com/software/productivity-applications/office-2013-wont-run-on-windows-xp-vista/240003909">Office 13</a> --or those downloaded from the company's online Windows Store. <P> All Windows RT tablets are powered by chips that use ARM's mobile processor reference design, which aims for energy efficiency and long battery life. <P> HTC plans to release the devices next fall, Bloomberg reported, adding that both will be powered by ARM-based chips manufactured by Qualcomm. Nvidia also makes ARM chips for Windows RT tablets, including for Microsoft's Surface RT device. Spokespersons for Microsoft and HTC did not comment on the report. <P> HTC was excluded from Microsoft's original list of vendors authorized to build Windows 8 tablets and hybrids, which included Dell, Acer, ASUS, Hewlett-Packard and Samsung. If Microsoft has now extended a license to HTC, it may be a sign that Redmond is looking to broaden distribution for its new platform, sales of which are said to be below expectations. <P> There are other signs that Microsoft is ready to pull out the stops to get Windows 8 before as many eyeballs as possible. Redmond originally planned to sell Surface only through its company-owned online and brick-and-mortar stores. But last week it reversed course, releasing <a href="http://www.informationweek.com/hardware/handheld/can-microsoft-surface-best-buy-save-each/240144430">Surface RT for sale at Best Buy</a> and Staples. <P> <b>[Is Microsoft Office Right For Touch-based Computing? See: <a href="http://www.informationweek.com/software/productivity-applications/office-2013-is-microsoft-out-of-touch/240003826?itc=edit_in_body_cross">Office 2013: Is Microsoft Out Of Touch?</a>.]</b> <P> Earlier this month, Microsoft said it would convert a number of so-called <a href="http://www.informationweek.com/software/windows8/microsoft-plans-windows-8-pop-up-retail/240007060">pop-up stores</a> it opened around the country for the holidays into permanent locations. <P> "Based on the success of the Microsoft holiday stores, the company will extend all of these locations into the new year. These stores will transition into either permanent brick-and-mortar retail outlets or specialty store locations," Microsoft said in a statement. <P> Microsoft has said that more than 40 million Windows 8 licenses have been sold since the OS was released. It has not commented publicly on Surface RT sales, but some analysts have said that they are running below expectations. Analysts at Boston-based brokerage firm Detwiler Fenton last week pegged sales of Surface RT at between 500,000 and 600,000 units since the product launched on Oct 26. <P> By contrast, Apple said it sold 3 million iPads during the first three days after launching the iPad mini in early November. <P> <i>Upgrading isn't the easy decision that Win 7 was. We take a close look at Server 2012, changes to mobility and security, and more in the new <a href="http://www.informationweek.com/gogreen/092412/?k=axxe&cid=article_axxt_os">Here Comes Windows 8</a> issue of InformationWeek. Also in this issue: Why you should have the difficult conversations about the value of OS and PC upgrades before discussing Windows 8. (Free registration required.)</i>2012-12-21T09:00:00ZMicrosoft-sponsored IDC report says there are currently 1.7 million open cloud positions just waiting to be filled.http://www.informationweek.com/windows/microsoft-news/cloud-jobs-7-million-in-3-years-idc-says/240145194?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/big-data/slideshows/big-data-analytics/7-tips-on-closing-the-big-data-talent-ga/240012658"><img src="http://twimgs.com/informationweek/galleries/automated/895/01_BigD_Talent_Gap_tn.jpg" alt=" Big Data Talent War: 7 Ways To Win" title=" Big Data Talent War: 7 Ways To Win" class="img175" /></a><br /> <div class="storyImageTitle"> Big Data Talent War: 7 Ways To Win</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE -->Cloud computing, and related areas like virtualization and data management, will create 7 million jobs over the next three years, according to a new study published by Microsoft and IDC. The study also claimed that currently there are 1.7 million open cloud jobs worldwide that organizations are having a tough time filling. <P> "Despite modest growth in the IT sector overall in the U.S., cloud-ready jobs are increasing as we head into 2013," said Cushing Anderson, a program VP at IDC, in a statement. "With this increase comes the harsh reality that workforces around the world are steps behind when it comes to attaining the skills necessary to thrive in the cloud computing industry." <P> The study's authors contend that cloud computing will drive demand for individuals with a hard-to-find mix of business and IT skills, given that many of the new jobs will involve architecture, design, advisory, and transitional services as opposed to just hands-on tech functions. <P> "Unlike IT skill shortages in the past, solving this skills gap is extremely challenging, given that cloud brings a new set of skills, which haven't been needed in the past," said Anderson. "There is no one-size-fits-all set of criteria for jobs in cloud computing. Therefore, training and certification is essential for preparing prospective jobs candidates to work in cloud-related jobs." <P> The study found that worldwide, almost two-thirds of businesses plan to implement, or are already using, cloud technologies in their operations, with the U.S. accounting for 62% of spending on public cloud infrastructure. It also found that lack of training, certification, and experience are the top three reasons cloud positions are not being filled. <P> <b>[ Does the U.S. need to import more foreign tech help? New York City mayor Michael Bloomberg thinks so. Read <a href="http://www.informationweek.com/services/outsourcing/nyc-mayor-us-needs-more-foreign-tech-tal/231900459?itc=edit_in_body_cross">NYC Mayor: U.S. Needs More Foreign Tech Talent</a>. ]</b> <P> To address the problem, Microsoft recently announced that it has revamped many of its certifications to take into account cloud computing technologies and methods, including forthcoming certifications for Windows 8 specialists. <a href="http://www.informationweek.com/software/windows8/windows-8-flop-wouldnt-doom-server-2012/240010020">Windows 8 and Windows Server 2012</a> are designed to work in concert with Microsoft cloud services such as Azure and Office 365. <P> The study is bound to <a href="http://www.informationweek.com/global-cio/h1b/us-shelves-h-1b-visa-talks-with-india/232301548">create some controversy</a>. Microsoft has long claimed that there are worker shortages in a number of key IT areas, and has been pushing the U.S. government to increase the number of H-1B visas available to foreign tech workers. Currently, the number is capped at 65,000, with an additional 20,000 available to foreign graduates of advanced STEM programs at U.S. colleges and universities. <P> Redmond also wants Congress to pass legislation that would make it easier for U.S. companies to procure permanent resident status (or green cards) for foreign tech hires. Under one plan floated by Microsoft, private businesses could pay up to $15,000 to procure green card approval for a foreign hire. <P> Critics of such proposals, including The Programmers Guild, argue that U.S. tech companies should focus on retraining older IT pros, many of whom have been laid off in recent years, in cloud and other new skills before hiring foreigners. <P> <i><a href="http://www.cloudconnectevent.com/santaclara/?_mc=DIWEEK">Cloud Connect</a> returns to Silicon Valley, April 2-5, 2013, for four days of lectures, panels, tutorials and roundtable discussions on a comprehensive selection of cloud topics taught by leading industry experts. Use priority code DIWEEK by Jan. 1 to save up to $700 with Super Early Bird Savings. Join us in Silicon Valley to see new products, keep up-to-date on industry trends and create and strengthen professional relationships. Register for <a href="http://www.cloudconnectevent.com/santaclara/?_mc=DIWEEK">Cloud Connect</a> now. </i>2012-12-20T15:01:00ZFormer Starbucks CIO and 2011 <em>InformationWeek</em> Chief of The Year Stephen Gillett heads to Silicon Valley.http://www.informationweek.com/security/antivirus/bestbuycom-chief-leaves-for-symantec/240145136?cid=SBX_iwk_related_commentary_Enterprise_Applications_softwareAfter less than nine months on the job as head of Best Buy's online operation, Stephen Gillett has left the struggling retailer to take a senior position at Symantec, which is in the midst of its own reorganization as it tries to adapt to changes in the security software market. <P> Symantec named Gillett executive VP and COO on Wednesday. His responsibilities will include oversight of the company's IT, marketing, and communications operations. "Stephen is the perfect fit for the direction we are taking Symantec," said Steve Bennett, Symantec chairman and CEO, in a statement. "He has been deeply involved in the transformation of a number of high-profile companies at the executive level and is highly respected in the CIO community worldwide." <P> Gillett has been on Symantec's board since January, and will relinquish that position. He is a former CIO of Starbucks, and was named <em>InformationWeek</em>'s <a href="http://www.informationweek.com/global-cio/interviews/starbucks-stephen-gillett-informationwee/232200549">Chief of The Year</a> for 2011. <P> <strong>[ Where is Symantec headed next? Read <a href="http://www.informationweek.com/security/antivirus/symantec-security-has-become-forgotten-c/240007296?itc=edit_in_body_cross">Symantec Security Has Become Forgotten Child, Critics Say</a>. ]</strong> <P> His departure from Best Buy was unexpected and seen as somewhat of a surprise, given that he was brought in as recently as March to bolster and add credibility to Best Buy's e-commerce efforts. Best Buy has been struggling to convert visits to its website into sales. It's also challenged by the fact that consumers are increasingly using its stores to <a href="http://www.informationweek.com/hardware/handheld/can-microsoft-surface-best-buy-save-each/240144430">check out the latest gadgets</a>, while making actual purchases online at discounters like Amazon. <P> Gillett's departure marks the latest high-level exit at Best Buy. CEO Brian Dunn left in April after allegations of an inappropriate relationship with a female employee. He was replaced by former Vivendi Universal Games CEO Hubert Joly. Joly recently brought in his own team of senior executives, a fact that some observers believe contributed to Gillett's departure. <P> "I will miss the wonderful teams at Best Buy," Gillett tweeted on Wednesday. "Our time together was short, but our friendships and experiences lifelong. Thank you." <P> Gillett will have his work cut out at Symantec. The company's stock was downgraded earlier this month by Standpoint Research, amid concerns about increased competition. Microsoft is beefing up free security software for Windows PCs, as well as <a href="http://www.informationweek.com/software/windows8/windows-8-a-win-for-enterprise-security/240009687">enterprise offerings like EndPoint</a>. Symantec is expected to unveil a new strategic plan in January. <P> "Great companies are defined by their market position, customer base, brand awareness, the quality of their products and by the type of industry they're involved in," said Gillett, in a statement. "Symantec is strong in all of these areas. I look forward to working with everyone at Symantec to help the company achieve its full potential." Gillett did not immediately respond to a request for further comment. <P> <i>Tech spending is looking up, but IT must focus more on customers and less on internal systems. Also in the new, all-digital <a href="http://www.informationweek.com/gogreen/121012/?k=axxe&cid=article_axxt_os">Outlook 2013</a> issue of InformationWeek: Five painless rules for encryption. (Free registration required.)</i>2012-12-20T11:06:00ZThe past year saw some big wins, and big setbacks, for Microsoft. And then there's the special case of Windows 8.http://www.informationweek.com/software/windows8/microsofts-big-hits-and-misses-of-2012/240145087?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/smb/hardware-software/windows-8-8-big-benefits-for-smbs/240142263"><img src="http://twimgs.com/informationweek/galleries/automated/907/01_windows8pro_tn.jpg" alt="Windows 8: 8 Big Benefits For SMBs" title="Windows 8: 8 Big Benefits For SMBs" class="img175" /></a><br /><div class="storyImageTitle">Windows 8: 8 Big Benefits For SMBs</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> Microsoft's effort to embrace a computing market in which the PC is taking a back seat to tablets and smartphones has been well documented in this column. Many of Redmond's troubles of late have arisen directly from that market evolution. <P> But don't count the company out just yet -- it had some solid breakthroughs in 2012. There were also several misfires. Here's a look back at Microsoft's biggest hits and misses of the past year. <P> <b>Microsoft's 4 Big Hits</b> <P> <b>1. Windows 8</b> <br> Microsoft has taken a lot of heat for Windows 8, and early sales are likely below expectations. Critics complain that the OS, with its Live Tiles interface, is too difficult to learn. But Redmond should be given credit for its bold move to introduce a truly innovative platform that separates Windows 8 devices from the iPad and me-too Android tablets. <P> Granted, Windows 8 could use some tweaking to make it more user friendly, and sales and distribution have been anything but smooth. But the software itself is rich, technically impressive (how about those seven-second boot times?), and secure. It should eventually make Microsoft a player in tablets while keeping its PC franchise intact. <P> <b>2. Yammer Acquisition</b> <br> Microsoft in June bought out business social networking and collaboration specialist Yammer for $1.2 billion. On its own it would have been a smart deal, as biz collaboration is one of enterprise software's hottest categories. But the deal makes even more sense given the synergies Microsoft can achieve by adding Yammer to its existing collaboration technologies. <P> Among <a href="http://www.informationweek.com/thebrainyard/news/240012740/dynamics-crm-gets-yammer-skype-ipad-support">the products that will benefit</a> from getting bits and pieces of Yammer added in are Dynamics CRM, Skype, Sharepoint and Office 365. <P> <b>3. Xbox SmartGlass</b> <br> For the past couple of years, Microsoft has dribbled out a host of new products that appeared to have little connection to each other. Windows Phone, Windows 8, Live, Bing, Kinect, Azure and so on. <a href="http://www.informationweek.com/hardware/desktop/xbox-smartglass-could-save-windows-phone/240001577">Enter Xbox SmartGlass</a>, a game-changing technology that ties it all together and promises to make Microsoft relevant again in the consumer market. <P> SmartGlass is a collection of apps and embedded technologies that form an ecosystem, one in which digital content can migrate from one platform to the next, be it a phone, tablet, desktop or home theater. In a demo at E3 earlier this year, SmartGlass pulled together the capabilities of Xbox 360, Kinect and Windows 8 tablets to show how it can take gaming to the next level. With Madden NFL 13 running on one screen, a user drew up plays on a Win8 tablet, which the game then executed on an HDTV. Pretty cool stuff. <P> <b>4. Hardware Entry</b> <br> With the introduction of <a href="http://www.informationweek.com/hardware/handheld/can-microsoft-surface-best-buy-save-each/240144430">the Surface tablet</a> this year, Microsoft stole a page from Apple's playbook to become a vendor of integrated systems. It was a smart move. Software margins are declining and hardware is a commodity, but by bundling Microsoft can continue to ensure decent profits. <P> From a technical standpoint, CEO Steve Ballmer said it best at the company's shareholder meeting last month: "What we've said to ourselves now is that there is no boundary between hardware and software that we will let build up as a kind of innovation barrier." Up next? Watch for a Microsoft-branded smartphone.<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/windows/operating-systems/windows-goofs-and-gaffes/240009646"><img src="http://twimgs.com/informationweek/galleries/automated/888/01_clippy_tn.jpg" alt="Windows: Goofs And Gaffes " title="Windows: Goofs And Gaffes " class="img175" /></a><br /> <div class="storyImageTitle">Windows: Goofs And Gaffes </div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div><!-- /KINDLE EXCLUDE --> <P> <b>1. Windows 8</b> <br> Windows 8 is a hit, but it's also a miss? Yep, because right now, Windows 8 is all about potential. But that will be lost if Microsoft doesn't clean up a few things. For starters, the company needs to unify the user experience across Windows 8's dual (and dueling) Metro and desktop interfaces. For example, Internet Explorer 10 in Metro relies on a host of commands and touch gestures that don't function in the desktop version. That's just going to breed user frustration and confusion. <P> Microsoft also needs to give users the <a href="http://www.informationweek.com/windows/operating-systems/windows-8-fizzling-time-for-windows-clas/240142618">option to bypass Metro</a> and boot to the more familiar Windows Explorer desktop if they like. No need to strong-arm users into Metro if that's not what they prefer. <P> <b>2. Surface RT</b> <br> Similarly, Microsoft's decision to get into hardware should be a hit long term, but its execution in the short term has been poor. By all accounts, Surface is not selling well -- and with good reason. With a starting price of $499, it's $200 more expensive than <a href="http://www.informationweek.com/personal-tech/tablets/kindle-fire-95000-orders-on-day-one/231602481">Amazon's Kindle Fire HD</a> and priced on par with the new iPad. <P> <b>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross ">suggests it's likely</a>. ]</b> <P> Microsoft needs to bite the bullet on price to establish Surface in the market. $399 would have been a good starting price, and we may yet see that. Microsoft also erred by withholding Surface Pro until after the holidays. Buyers who want a fully functioning Windows 8 tablet in time for Christmas can opt for one from Dell, Acer or a number of other OEMs. That's good for the PC makers, but it doesn't help the Surface franchise. <P> <b>3. Windows Phone 8</b> <br> Like Windows 8, Windows Phone 8 is technically impressive. It supports quad-core processors, and features scaled down and more customizable Live Tiles. But unlike Windows 8, it doesn't have a 400-million user installed base of previous-generation software on which to ride. It's out there on its own. <P> As a result, Windows Phone, including Windows Phone 7 and Windows Phone 8, holds a market share less than 3.2%, according to ComScore. Unless those numbers pick up soon, the Windows Phone experiment will have to be considered a flop. <P> <b>4. Bing Taste Test</b> <br> In September, Microsoft stood up a website through which users could take a blind test to rank search results from Bing and Google. Microsoft claimed that users, who didn't know which results were from which search engine, preferred Bing almost 60%. <em>InformationWeek</em> invited readers to <a href="http://www.informationweek.com/software/enterprise-applications/bing-vs-google-taste-test-reader-results/240007275">take the test</a> and report back to us. The numbers weren't even close to Microsoft's claim. <em>InformationWeek</em> readers preferred Google's results by a ratio of almost 2 to 1. Sorry Bing. <P> What do you think were Microsoft's biggest hits and misses of 2012? Let me know in the comments section below.2012-12-19T10:45:00ZColumbus grants Big Blue incentive package as IBM pledges to create hundreds of new jobs in big data analytics.http://www.informationweek.com/software/business-intelligence/ibm-gets-45-million-tax-break-on-analyti/240144983?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --><div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/big-data/slideshows/big-data-analytics/7-tips-on-closing-the-big-data-talent-ga/240012658"><img src="http://twimgs.com/informationweek/galleries/automated/895/01_BigD_Talent_Gap_tn.jpg" alt=" Big Data Talent War: 7 Ways To Win" title=" Big Data Talent War: 7 Ways To Win" class="img175" /></a><br /> <div class="storyImageTitle"> Big Data Talent War: 7 Ways To Win</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div><!-- /KINDLE EXCLUDE -->The city of Columbus, Ohio has agreed to award IBM a package of tax breaks and other incentives worth about $4.5 million in exchange for Big Blue's commitment to open a state-of-the-art data center in the community and to retain existing high-tech jobs in the area. <P> IBM expects the previously announced center, which will specialize in technologies that drive <a href="http://www.informationweek.com/global-cio/trends/big-data-and-analytics-expertise-beg-bor/240142905">big data analytics</a>, to create about 500 new jobs. The company also made a commitment to keep more than 600 existing employees in the Buckeye State. <P> Under the deal with the city, IBM will get a credit for 65% of the income tax it will pay for new employees at the data center over the next six years, according to a published report. <P> The package is worth about $4.5 million to IBM, and Columbus will gain about $2.4 million in revenues. The state of Ohio is also contributing by offering IBM a 60% job-creation tax credit for over eight years, <a href="http://www.dispatch.com/content/stories/local/2012/12/18/city-gives-ibm-millions-in-tax-breaks-for-new-jobs.html">the <em>Columbus Dispatch</em> reported</a>. <P> "When a company with a long-standing reputation like IBM steps forward and says they are going to create jobs, it's incumbent upon the city to help them reach that goal," Councilman Zach Klein said at a Columbus city council meeting Monday, according to the newspaper. "This is really good work of moving the ball down the field of what we are trying to accomplish in economic development." <P> <strong>[ Will PCs have sensory capabilities in five years? Read <a href="http://www.informationweek.com/hardware/supercomputers/ibm-pcs-by-2018-will-see-hear-touch/240144501?itc=edit_in_body_cross">IBM: PCs By 2018 Will See, Hear, Touch</a>. ]</strong> <P> IBM first announced plans for the center last month. The IBM Client Center for Advanced Analytics will operate in partnership with The Ohio State University, Jobs Ohio and Columbus 2020. IBM said the center will focus on commercializing the technologies behind its Watson supercomputer, which <a href="http://www.informationweek.com/hardware/supercomputers/ibms-watson-trounces-puny-humans-at-jeop/229218859">vanquished human opponents on "Jeopardy,"</a> as well as on Smarter Commerce and IBM Social Business initiatives. <P> "Data is a powerful natural resource that, if used wisely, can drive U.S. economic competitiveness and lead to rewarding careers in the future dedicated to building a smarter planet," said Mike Rhodin, senior VP for IBM Software Solutions, in a statement. <P> "This center will have a tremendous amount to offer world-class educational institutions, a highly educated workforce, industry-leading businesses and -- perhaps most important of all -- [it] will serve as the foundation of community of innovators that will transform industries around the world," said Rhodin. <P> Ohio State will contribute to the effort by developing courses that train students in big data analytics and related disciplines. "Our strong collaboration with IBM will help our students across a variety of majors gain the latest skills in this burgeoning big data discipline and set them on a path to secure the high-skilled jobs of the future," said Christine Poon, dean of Ohio State's Fisher College of Business, in a statement. IBM shares opened flat, at $195.73, in morning trading Wednesday. <P> <i>Predictive analysis is getting faster, more accurate and more accessible. Combined with big data, it's driving a new age of experiments. Also in the new, all-digital <a href="http://www.informationweek.com/gogreen/111912/?k=axxe&cid=article_axxt_os">Advanced Analytics</a> issue of InformationWeek: Are project management offices a waste of money? (Free registration required.)</i>2012-12-19T09:06:00ZDell Latitude 10 among Windows 8 systems not yet available, as tablet makers struggle with drivers for energy-efficient Intel Clover Trail chip.http://www.informationweek.com/hardware/handheld/dell-hp-windows-8-atom-tablets-delayed-u/240145002?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/software/windows8/10-great-windows-8-apps/2401422277"><img src="http://twimgs.com/informationweek/galleries/automated/906/01_Windows_Stor_Apps_1st_slide_tn.jpg" alt="10 Great Windows 8 Apps" title="10 Great Windows 8 Apps" class="img175" /></a><br /> <div class="storyImageTitle">10 Great Windows 8 Apps</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> Dell and other vendors have pushed back until January the launch of Windows 8 tablets that use a new, energy-efficient Intel chip that was supposed to put Windows devices on an even footing with the iPad and Android tablets in terms of performance and battery life, but which is apparently causing big headaches for system builders. <P> Dell's Latitude 10, which runs Intel's Atom Z2760, or "Clover Trail" chip, was, as of early Wednesday, not available for shipping until Jan. 22nd, according to the company's Web site. Only a month ago, Dell had been advertising a pre-Christmas ship date of Dec. 12. The tablet starts at $649, features Windows 8 Pro, and is aimed at business users. <P> A Dell customer who contacted InformationWeek said company representatives told him last week that the Latitude 10 is delayed. The customer, who asked not to be identified, originally placed his order on Nov. 28, paid for two-day expedited shipping, and was given a mid-December delivery date. Now, Dell is telling him the system won't be available until January. <P> "Dell Latitude 10 is not officially launched. As soon as it will be launched it will be sent to you," a Dell rep told the customer via live chat on Dec. 11, according to a transcript of the session. Dell's Web site is continuing to accept orders for the Latitude 10, and does not indicate it is available only as a preorder. A Dell spokesman did not respond to a request for comment. <P> Dell isn't the only vendor having trouble with Windows 8 systems built around Intel's Clover Trail chip. Hewlett-Packard's site shows that its Envy x2 convertible is not available until Jan. 8. The company originally said it would ship in November, within weeks of <a href="http://www.informationweek.com/software/windows8/ballmer-windows-has-great-tablets-for-th/240010024">Windows 8's launch on Oct. 26</a>. <P> ASUS and Lenovo have not announced specific launch dates for their Clover Trail systems, the VivoTab Smart and ThinkPad Tablet 2, respectively. Of the top 5 PC makers, only Acer's W510 Clover Trail tablet is available for immediate purchase, but it can only be had in limited quantities from Amazon and Microsoft's online store. <P> <b>[Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross ">suggests it's likely</a>.]</b> <P> Intel designed Clover Trail to take full advantage of Windows 8's capabilities, including a key feature called Connected Standby. Connected Standby is supposed to give tablet users a smartphone-like experience by ensuring that their devices are always up to date with new e-mails, messages and other data, even when their systems are powered down. Clover Trail also promises all-day battery life. <P> But PC makers are having trouble building Clover Trail drivers that are stable enough to pass Microsoft's Windows Hardware Quality Labs (WHQL) testing, sources say. Under Microsoft's licensing terms, Windows systems must receive WHQL certification before they can be offered for sale. Intel has not responded to repeated inquiries about the situation. <P> Cindy Shaw, an analyst with research firm DISCERN, said the delay could hurt PC makers that specialize in enterprise sales. "HP and Dell are conceding they've given up on the consumer, so missing the holiday season is not that big of a deal. They're not missing that magical time of the year," said Shaw. "But the longer it takes for businesses to get their hands on evaluation units, the longer it's going to take to translate into enterprise sales." <P> Most PC makers currently offer Windows 8 systems, such as the <a href="http://www.informationweek.com/software/windows8/dell-xps-12-windows-8-tablet-vs-hurrican/240062511">Dell XPS 12</a>, that use Intel's older Core architecture instead of Clover Trail. <a href="http://www.informationweek.com/hardware/desktop/microsoft-surface-rt-best-tablet-ever-re/240144582">Microsoft's Surface Pro tablet</a> also runs an Intel Core chip. Core packs more power than Clover Trail, but does not support Connected Standby and consumes batteries more quickly. A Microsoft spokesperson said the company could not immediately offer a comment. <P> <i>For the 16th consecutive year, InformationWeek is conducting its U.S. IT Salary Survey. To date, more than 200,000 IT professionals have participated in this survey. Take our <a href="http://informationweek.2013ITSalarySurvey.sgizmo.com/s3/?iwid=pl">InformationWeek 2013 U.S. IT Salary Survey</a> now, and be eligible to win some great prizes. Survey ends Jan. 18. </i>2012-12-18T11:31:00ZMicrosoft says Gmail users who want real-time e-mail on Windows devices should switch to Outlook.com. http://www.informationweek.com/mobility/messaging/microsoft-slams-google-decision-to-axe-a/240144589?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/software/windows8/microsoft-pop-up-stores-hands-on-look/240012472"><img src="http://twimgs.com/informationweek/galleries/automated/891/1_tn.jpg" alt="Microsoft Pop-Up Stores: Hands-On Look" title="Microsoft Pop-Up Stores: Hands-On Look" class="img175" /></a><br /> <div class="storyImageTitle">Microsoft Pop-Up Stores: Hands-On Look</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE -->Microsoft is publicly criticizing Google for its decision to end support for Exchange ActiveSync on the free version of Google Apps, and said Gmail users should take the move as an opportunity to switch to Microsoft's own cloud e-mail service, Outlook.com. <P> "We were very surprised to see Gmail announce last week that they'll soon end support for Exchange ActiveSync (EAS), unless of course you're willing to pay Google for your email," said Dharmesh Mehta, a senior director of product management at Microsoft, in <a href="http://blogs.office.com/b/microsoft-outlook/archive/2012/12/17/outlook.com-supports-exchange-active-sync-for-the-best-email-experience-across-devices-.aspx">a blog post</a>. <P> "It means that many people currently using Gmail for free are facing a situation where they might have to degrade their mobile email experience by downgrading to an older protocol that doesn't sync your calendar or contacts, doesn't give you direct push of new email messages and doesn't have all the benefits of Exchange ActiveSync," he said. <P> <strong>[ Is Microsoft Office right for touch-based computing? Read <a href="http://www.informationweek.com/software/productivity-applications/office-2013-is-microsoft-out-of-touch/240003826?itc=edit_in_body_cross">Office 2013: Is Microsoft Out Of Touch?</a> ]</strong> <P> Google said that it will continue to support existing ActiveSync accounts, but that after Jan. 30 users who want to set up new access to the non-commercial version of Gmail on Windows and Windows Phone mobile devices will need a workaround. One way is to set up an IMAP connection. Users who do so will still be able to access their Gmail, but new e-mails and notifications will not get pushed to them in real time. <P> "So if you want a better email, especially on your phone or tablet, it's time to join the millions who have already made the choice to upgrade to Outlook.com," said Mehta. IMAP and another e-mail protocol known as POP "were designed decades ago," Mehta noted. <P> Users of Google Apps for Business, Government and Education will continue to have the option to use ActiveSync with those services. Google last week said its decision to end support for ActiveSync on the free version was simply part of a "winter cleaning", under which it also is eliminating a number of other services it said were underused. <P> "Last January, we renewed our resolution to focus on creating beautiful, useful products that improve millions of people's lives every day. To make the most impact, we need to make some difficult decisions," the company said, in <a href="http://googleblog.blogspot.com/2012/12/winter-cleaning.html">a blog post of its own</a>. Getting the axe, as of Jan. 4, are a number of Google Calendar features, including one that allowed users to create new reservable times on their Calendar through Appointment Slots. Smart Rescheduler and Add Gadget by URL are two other features that are also getting cut. Google Calendar Synch was discontinued last week. <P> Several other Google online services are <a href="http://www.informationweek.com/byte/personal-tech/consumer-services/google-makes-byod-harder/240144497">scheduled to be terminated</a>. <P> "As you enter the New Year, we encourage you to seize the opportunity to upgrade your mail to a service that puts the consumer first and gives you a great mobile email experience," Microsoft's Mehta chided, in response to Google's announcement. <P> <i>Tech spending is looking up, but IT must focus more on customers and less on internal systems. Also in the new, all-digital <a href="http://www.informationweek.com/gogreen/121012/?k=axxe&cid=article_axxt_os">Outlook 2013</a> issue of InformationWeek: Five painless rules for encryption. (Free registration required.)</i>2012-12-18T09:09:00ZWindows 8 tablet may not be posting big sales numbers, but everyone who bought one from Best Buy claims to love it unconditionally.http://www.informationweek.com/hardware/desktop/microsoft-surface-rt-best-tablet-ever-re/240144582?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/software/windows8/10-great-windows-8-apps/2401422277"><img src="http://twimgs.com/informationweek/galleries/automated/906/01_Windows_Stor_Apps_1st_slide_tn.jpg" alt="10 Great Windows 8 Apps" title="10 Great Windows 8 Apps" class="img175" /></a><br /> <div class="storyImageTitle">10 Great Windows 8 Apps</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> Forget for a moment that it won't run Windows applications, starts at $200 more than Kindle Fire HD and doesn't have a Facebook app. The consensus among those who purchased Microsoft's Windows 8 tablet from Best Buy is that it is pretty much the best computing device in history. <P> "I sold my iPad," gushed a buyer who identified himself or herself as "ExIpadUser." "I hope to retire my Kindle HD as soon as Microsoft publishes enough apps in the store." A reviewer going by the name "HighTechLover2" was even more effusive: "Best tablet I ever saw in my life!!!" he, she or it proclaimed. <P> Numerous analysts have reported that Surface RT is not meeting Microsoft's sales expectations. But it seems to have won over the hearts and minds of Best Buy shoppers. The 32-GB, Touch Cover-included version, priced at $599, averaged a near perfect score of 4.9 out of 5 stars from 20 reviewers. Olympic gymnast Gabby Douglas should have been so lucky. The $499, 32-GB version (without Touch Cover) averaged 4.7 from 11 reviewers, while the $699, 64-GB version averaged 4.5 from six reviewers. The only downside one buyer could think of was, "My fear of dropping it." <P> <b>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950?itc=edit_in_body_cross">suggests it's likely</a>.]</b> <P> You can forgive <a href="http://www.bestbuy.com/site/Microsoft+-+Surface+with+Windows+RT+with+32GB+Memory+%26+Black+Touch+Cover/7409105.p;tab=reviews?id=1218843729064&skuId=7409105">the Best Buy reviewers</a> for their lack of nuance. Of those who critiqued Surface RT, the vast majority had previously never reviewed any other products, and most never had a Best Buy user's profile until last week, when Surface first went on sale at the store (mousing over a reviewer's handle provides this info). <P> "Coty 09," whose activity on the Best Buy site dates back as far as Monday, had this to say: "The Surface RT is a great product that is easy to use and is built very well. This will be great for work, school and play." Who talks that way? Marketing people, according to The Consumerist's list of "<a href="http://consumerist.com/2010/04/14/how-you-spot-fake-online-reviews/">30 Ways You Can Spot Fake Online Reviews</a>." <P> It was never Microsoft's intention to sell Surface at Best Buy, at least not until after the holidays. The original plan was for the tablet to be available only through its online store and the handful of brick-and-mortar locations it has opened around the country. But meager sales apparently led to Plan BBY. <P> In addition to Best Buy, Surface RT is also available at Staples. Staples customer reviewers -- all four of them -- appeared equally impressed with the device. The $499 version had drawn 5 out of 5 stars from two reviewers as of early Tuesday, the $599 version got 4.5 from 2 reviewers. The $699 version had no reviews. Four reviews after almost a week of availability suggests Staples isn't likely to sell out of Surface RT any time soon, but at least those who bought appear to like it. <P> <a href="http://www.informationweek.com/windows/microsoft-news/microsoft-surface-matches-new-ipad-price/240009105">Surface RT</a> runs a pared-down version of Windows 8 known as Windows RT. The OS, which runs on ARM-based chips, is not compatible with standard Windows applications. It only supports software pre-installed by Microsoft or apps downloaded from the company's online Windows Store. That limited functionality, according to a published report this week, had one Dell exec urging Microsoft to <a href="http://www.afr.com/p/technology/microsoft_urged_to_ditch_windows_RLGNOworu4X2EmBJuIzOqI">ditch the Windows brand</a> for RT devices, for fear it would confuse customers. <P> Surface Pro runs full-blown Windows 8, and it's also compatible with legacy Windows applications and Microsoft's full-range of security and management products. It will be available starting in January, according to Microsoft. Whether it will land in Best Buy, Staples or other major retailers, the company has yet to say.2012-12-17T09:29:00ZIBM predicts that in five years artificial intelligence will be able to mimic the five human senses.http://www.informationweek.com/hardware/supercomputers/ibm-pcs-by-2018-will-see-hear-touch/240144501?cid=SBX_iwk_related_commentary_Enterprise_Applications_softwareMaybe this is how Data got started. Computers will soon gain human-like abilities to receive input through senses like taste, touch and smell, according to IBM's annual list of innovations that will change computing in five years. <P> IBM calls the development the "era of cognitive systems" and says it will usher in brand new ways for humans and PCs to interact. <P> "This new generation of machines will learn, adapt, sense and begin to experience the world as it really is," the company said in a statement. "This year's predictions focus on one element of the new era, the ability of computers to mimic the human senses--in their own way, to see, smell, touch, taste, and hear." <P> IBM said the breakthroughs could have <a href="http://www.informationweek.com/hardware/processors/ibm-reveals-chip-that-acts-like-human-br/231500276">multiple commercial applications</a>, helping drive industries such as mobile commerce. <P> Researchers at the company are working on technologies that would allow smartphone displays to mimic the feel of fabrics or other materials for which consumers might be shopping. "The vibration pattern will differentiate silk from linen or cotton, helping simulate the physical sensation of actually touching the material," the company said. <P> IBM also predicts that computers will be able to gain the ability to recognize and interpret images without them having to be tagged. <a href="mationweek.com/software/business-intelligence/inside-watson-ibms-jeopardy-computer/229100143">Smart computers</a> will be able to recognize attributes like color and texture patterns. "This will have a profound impact for industries such as healthcare, retail and agriculture," the company said. <P> IBM imagines applications like smart sensors that could allow X-Ray and CT scanners to automatically differentiate healthy from diseased tissue. <P> IBM is also teaching computers to hear by imbuing them with the capability to key on some sounds and vibrations, while filtering out others. That could lead to a range of applications, from improved child monitoring systems to geological equipment that could predict when a landslide is imminent. <P> Taste is another sense that IBM believes computers will gain in the next half-decade. While Star Trek's food replicator may be a long way off, the company is working on systems that can break foods down into their constituent components to ascertain what makes some combinations appealing and others less so. This could even lead to the development of new, healthy flavorings. <P> Finally, IBM also sees the arrival of computers that can smell. Sensors could be embedded within a smartphone to measure the qualities of a user's breath, and predict if he or she is coming down with a cold or some other condition. <P> "IBM scientists around the world are collaborating on advances that will help computers make sense of the world around them," said Bernie Meyerson, IBM Fellow and VP of Innovation, in a statement. "Just as the human brain relies on interacting with the world using multiple senses, by bringing combinations of these breakthroughs together, cognitive systems will bring even greater value and insights, helping us solve some of the most complicated challenges." <P> <i>Tech spending is looking up, but IT must focus more on customers and less on internal systems. Also in the new, all-digital <a href="http://www.informationweek.com/gogreen/121012/?k=axxe&cid=article_axxt_os">Outlook 2013</a> issue of InformationWeek: Five painless rules for encryption. (Free registration required.)</i> <P>2012-12-15T09:06:00ZMicrosoft needs to get its Windows 8 tablet in front of as many eyeballs as possible, and the retailer needs hot products to drive in-store sales.http://www.informationweek.com/hardware/handheld/can-microsoft-surface-best-buy-save-each/240144430?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --><div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/news/galleries/hardware/handheld/240002490"><img src="http://twimgs.com/informationweek/galleries/automated/820/11_Screen_tn.jpg" alt="Microsoft Surface Tablet: 10 Coolest Features" title="Microsoft Surface Tablet: 10 Coolest Features" class="img175" /></a><br /> <div class="storyImageTitle">Microsoft Surface Tablet: 10 Coolest Features</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE -->Microsoft said this week that Best Buy would carry the Windows 8 Surface RT tablet. Best Buy is bleeding cash, and Surface sales are slow --so it's a bit like pairing a cardiac case with an asthmatic. But if managed right, the combination could help both patients get off life support. <P> Microsoft has not commented publicly on Surface sales, but some analysts have said that they are running below the company's expectations. Analysts at Boston-based brokerage firm Detwiler Fenton last week pegged sales of Surface RT at between 500,000 and 600,000 units since the product launched on Oct. 26. By contrast, Apple sold 3 million iPads in three days following November's debut of the iPad Mini. <P> "Lack of distribution is killing the product," Detwiler Fenton said of Surface, in a research note published before <a href="http://www.informationweek.com/hardware/desktop/microsoft-surface-hits-best-buy-staples/240144424">the Best Buy deal</a> was announced. Surface RT is also now on sale at Staples. <P> <strong>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950">suggests it's likely</a>. ]</strong> <P> Just 4% of tablet buyers surveyed this week by Ipsos said they would choose Surface. Sure to be hurting sales is that until now it's been very difficult for potential buyers to literally get their hands on a Surface tablet. It had been available only through Microsoft's online store or at the handful of brick-and-mortar locations Microsoft has opened around the country. <P> Without being able to touch and feel the tablet, which is made of a cutting-edge alloy Microsoft calls VaporMg, consumers were likely to pass. That's where Best Buy comes in. The chain is hurting because shoppers will often kick the tires on products on its show floors, and then buy online for a lower price -- often tax free. That doesn't do Best Buy much good, but it does boost sales for the vendors whose products the store carries. <P> So how could Surface help Best Buy? At the very least, the widely hyped system is likely to increase foot traffic during the crucial holiday season as curious shoppers look to see <a href="http://www.informationweek.com/windows/microsoft-news/microsoft-surface-matches-new-ipad-price/240009105">what it's all about</a>. Even if they don't buy the tablet, they might stock up on PC accessories and the like, which the chain sells at considerable mark ups. <P> That alone won't be enough to save Best Buy, which posted a net loss, after charges, of $13 million in the third quarter. But it's a start, and new CEO Hubert Joly appears to have some good ideas for moving the business forward. When he came on board in September, he spent a week working the floor at Best Buy stores, blue shirt and all, to gain a better understanding of the challenges faced by sales staff. <P> That led him to try to combat the "try here, buy elsewhere" problem by authorizing sales reps to negotiate price discounts on the spot. Best Buy founder Dick Schulze, meanwhile, is looking to take the company private. <P> Tech makers, including Microsoft, would do well to support Joly's efforts as much as they can. If Best Buy goes down, like its former rival Circuit City did, consumers will have few options when it comes to seeing the newest gadgets in action. A PC, tablet or phone isn't like a song or movie file -- you can't download a preview before buying. <P> <i>Storing and protecting data are critical components of any successful cloud solution. Join our webcast, Cloud Storage Drivers: Auto-provisioning, Virtualization, Encryption, to stay ahead of the curve on automated and self-service storage, enterprise class data protection and service level management. <a href="https://www.techwebonlineevents.com/ars/eventregistration.do?mode=eventreg&F=1005242&K=STOEAIBM">Watch now or bookmark for later</a>.</i>2012-12-14T10:37:00ZWindows 8 tablet now available at retail outlets as Microsoft looks to jumpstart sales.http://www.informationweek.com/hardware/desktop/microsoft-surface-hits-best-buy-staples/240144424?cid=SBX_iwk_related_commentary_Enterprise_Applications_software<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/software/windows8/10-great-windows-8-apps/2401422277"><img src="http://twimgs.com/informationweek/galleries/automated/906/01_Windows_Stor_Apps_1st_slide_tn.jpg" alt="10 Great Windows 8 Apps" title="10 Great Windows 8 Apps" class="img175" /></a><br /> <div class="storyImageTitle">10 Great Windows 8 Apps</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> Surface RT, previously available only through Microsoft's website or its brick-and-mortar stores, is now on sale at retailers Best Buy and Staples as part of Redmond's effort to bolster distribution of the Windows 8 tablet, initial sales of which are said to be slow. <P> Best Buy is currently offering Surface RT for sale only online, but said it would stock the device in its stores starting Sunday. "Customers have come to expect Best Buy -- both its store and website -- to be the place with the broadest selection of consumer electronics, and our sale of this much-hyped new tablet just reinforces that point," said BestBuy.com president Scott Durchslag, in a statement. <P> Staples currently has Surface RT for sale both online and in stores. "Staples is excited to provide this innovative product to customers just in time for the holiday season," said Mike Edwards, Staples executive VP for merchandising, also in a statement. <P> Retail shoppers appear impressed with the device. Consumer reviewers on Best Buy's site gave all three available models, the $499 32-GB version, the $599 32-GB with Touch Cover version, and the $699 64-GB version, an average score of 4 out of 5 stars or higher. "It's much better than other tablets because it comes with MS Office," wrote one customer. <P> <b>[ Will Microsoft introduce more hardware products beyond Surface? CEO Steve Ballmer <a href="http://www.informationweek.com/software/windows8/ballmer-hardware-key-to-microsofts-futur/240142950">suggests it's likely</a>. ]</b> <P> In another effort to boost sales of Surface and other Windows 8-related products, Microsoft this week said it will convert a number of so-called <a href="http://www.informationweek.com/software/windows8/microsoft-plans-windows-8-pop-up-retail/240007060">pop-up stores</a> it opened around the country for the holidays into permanent locations. <P> "Based on the success of the Microsoft holiday stores, the company will extend all of these locations into the new year. These stores will transition into either permanent brick-and-mortar retail outlets or specialty store locations," Microsoft said in a statement. <P> Microsoft has not commented publicly on Surface RT sales, but some analysts have said that they are running below the company's expectations. Analysts at Boston-based brokerage firm Detwiler Fenton last week pegged sales of Surface RT at between 500,000 and 600,000 units since the product launched. <P> <a href="http://www.informationweek.com/windows/microsoft-news/microsoft-surface-matches-new-ipad-price/240009105">Surface RT</a> runs a pared down version of Windows 8 known as Windows RT. The OS, which runs on ARM-based chips, is not compatible with standard Windows applications. It supports only software pre-installed by Microsoft or apps downloaded from the company's online Windows Store. <P> Surface Pro runs full-blown Windows 8, and it's also compatible with legacy Windows applications and Microsoft's full-range of security and management products. It will be available starting in January, according to Microsoft.