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Commentary
8/17/2005
02:58 PM
Tom Smith
Tom Smith
Commentary
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In The Chips

In This Issue:
1. Editor's Note: In The Chips
2. Today's Top Story: Chips
    - Intel To Build $3 Billion Chip Factory
    - AMD Server Market Share Increases 50%
3. Breaking News
    - First Windows Vista Beta Could Ship Today
    - IBM Launches Z9, Latest Big-Iron Platform
    - Fujitsu Unveils Two New Primergy Servers
    - IBM Promotes Open Approach To Virtualization
    - How-To: Good Security Means Covering The Basics
    - CA Buys Desktop Anti-Spam Vendor
    - Cisco To Acquire Network-Management Vendor For $97M
    - One In Four Identity-Theft Victims Never Fully Recover
    - Opinion: Companies, Consumers Need Identity-Theft Insurance
    - Transportation Security Administration Charged With Violating Privacy Laws In Probe
    - Motorola, Cisco Team On Cellular Wi-Fi
    - Tablet PCs Headed For Broader Use, Study Says
    - New York Proposes Tracking Diabetes
    - Review: Archos Pocket Computer Combines Audio, Video, And Personal Information Management
4. In Depth: Financial Results And Indicators
5. Voice Of Authority: U.N., The Internet, And IT
6. White Papers: Spyware
7. Get More Out Of InformationWeek
8. Manage Your Newsletter Subscription

Quote of the day:
"When two men in business always agree, one of them is unnecessary." -- William Wrigley Jr.


1. Editor's Note: In The Chips

Tuesday's news from several chip/processor bellwethers ranks among the most encouraging developments--for the industry and its customers--that we've seen in the post-bubble IT economy:

  • Intel says it's planning to spend $3 billion to build a factory in Arizona and another $105 million to convert an inactive New Mexico plant into a temporary test facility. Nothing can convey a sense of confidence in customer buying plans like a 10-figure investment.

  • While it's not good news for Intel, it is good news for customers that AMD is making a dent in Intel's server market share. AMD has always been a scrappy competitor to Intel, but one that has long struggled to make meaningful inroads. That appears to be changing as AMD passes 10% server market share. This development has several implications:

    • Customers will take a longer look at AMD-based servers and have greater confidence in the vendor and its viability and credibility
    • If AMD continues to take share from Intel, it should have more financial wherewithal to keep building innovative products
    • Intel isn't likely to take this news sitting down, which should yield better, faster, cheaper products from the No. 1 chip supplier, too

  • Texas Instruments beat its own and analysts' financial forecasts as quarterly profit shot up 42%, boosted by lower inventory levels and robust demand for its chips. TI added fuel to the Semiconductor Industry Association's recent statement that it's projecting 6% growth this year, compared with its previous estimate of no growth.

    Billion-dollar investments, more and better customer choices, brisk customer demand. These are phrases we haven't heard enough of in recent years. For now anyway, it's as good as it gets.

    What's your take? Is it time to start popping champagne corks as we return to the heady days of old? Or are these just aberrations in an otherwise gloomy climate? Please weigh in by responding to my blog entry.

    Tom Smith
    tsmith@cmp.com
    www.informationweek.com


    2. Today's Top Story: Chips

    Intel To Build $3 Billion Chip Factory
    Intel will spend $3 billion to build a factory in Arizona and another $105 million to convert an inactive New Mexico plant into a temporary test facility.

    Related Story:
    AMD Server Market Share Increases 50%

    Intel is still dominant, with 86% market share.


    3. Breaking News

    First Windows Vista Beta Could Ship Today
    The company is holding a meeting for financial analysts on Thursday, and Microsoft watchers speculate that the company wants to kick off the meeting with good news.

    IBM Launches Z9, Latest Big-Iron Platform
    New mainframe offers a wealth of security and encryption features and virtualization capabilities.

    Fujitsu Unveils Two New Primergy Servers
    They include a rack and tower server built on 64-bit Xeon processors.

    IBM Promotes Open Approach To Virtualization
    IBM unveiled Virtualization Engine 2.0 and pledged it will work to create a standard approach that uses Web services to integrate its virtualization products with other vendors'.

    How-To: Good Security Means Covering The Basics
    Despite all the attention you have to give to phishing and spyware, security leaders can't lose sight of all the mundane, but critical, security requirements.

    CA Buys Desktop Anti-Spam Vendor
    The desktop anti-spam products will add another layer of protection to Computer Associates' security product line. CA already provides a gateway-based anti-spam offering in the business market.

    Cisco To Acquire Network-Management Vendor For $97M
    Privately held Sheer Networks targets large enterprise and service provider customers.

    One In Four Identity-Theft Victims Never Fully Recover
    Making things right after a stolen identity can take months and cost thousands, a survey of identity-theft victims finds.

    Opinion: Companies, Consumers Need Identity-Theft Insurance
    We also need services to help consumers get back on their feet.

    Transportation Security Administration Charged With Violating Privacy Laws In Probe
    The Transportation Security Administration violated privacy protections by collecting personal information on at least 250,000 people, according to congressional investigators.

    Motorola, Cisco Team On Cellular Wi-Fi
    The Motorola and Cisco technology will operate using Wi-Fi inside the enterprise and cellular telephony elsewhere, with a seamless handoff of communications between networks.

    Tablet PCs Headed For Broader Use, Study Says
    Lower prices, a better operating system, and a new, smaller form factor will spur greater adoption, a new study predicts.

    New York Proposes Tracking Diabetes
    The idea is to pinpoint patients who aren't managing their illness well and then intervene "slightly" in their care. Privacy advocates worry about monitoring anything but infectious diseases or public-health risks such as lead poisoning.

    Review: Archos Pocket Computer Combines Audio, Video, And Personal Information Management
    The Linux-based gadget is powerful and versatile, but it has its trade-offs, and it's kind of pricey.

    All our latest news


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

    RFID Deployment
    InformationWeek Research examines RFID and documents the challenges that companies face when implementing the technology.

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


    4. In Depth: Financial Results And Indicators

    Texas Instruments Sees 42% Income Gain
    The company beat its own and analysts' forecasts and was helped by lower inventory levels as well as by strong demand for new chips in everything from PCs to cars.

    EarthLink's 2Q Profit Falls
    The weak quarter was partly because of a revenue drop in EarthLink's dial-up Internet services.

    Smart-Phone Sales Doubled In Second Quarter
    Symbian extends its market share lead over Microsoft and Palm, according to the latest worldwide market share study.

    Verizon Reports 19% Quarterly Profit Gain
    The company's wireless operation is helping offset its struggling traditional phone business.

    Netflix 2Q Profit Nearly Doubles
    Netflix ended June with 3.2 million subscribers, a 53% increase from a year ago. But the company faces competition from Blockbuster.


    5. Voice Of Authority: U.N., The Internet, And IT

    Business Technology: U.N. Snatches Internet; Tomorrow All IT?
    In a phony-but-it-could-be-real memo, a confidential operative for The Private Sector warns CIOs and CEOs that the United Nations' recent posturing to take over the Internet is only a tiny hint at its larger intent: to seize control of all IT systems, networks, software, and processes in the world!


    6. White Papers: Spyware

    Spyware: The First Thing You Need To Know Is That You Probably Have It
    Spyware is a growing concern to organizations interested in safeguarding their proprietary intellectual property and protecting the personal, medical, and financial information of their clients. Websense presents a comprehensive, multilayered solution that blocks access at the gateway and prevents spyware applications from launching at the desktop.


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