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10/31/2005
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Intel Self-Destruct Mode Aids AMD Momentum

It's hard to believe a company that controls more than three-quarters of perhaps the most profitable segment of the electronics industry can simultaneously look vulnerable and weak even while posting "banner" operational results.

In This Issue:
1. Editor's Note: Intel Self-Destruct Mode Aids AMD Momentum
2. Today's Top Story
    - Microsoft Adds XPS In Office 12 To Fight Adobe
    Related Stories:
    - Microsoft Wins Washington Venue In Kai-Fu Lee Case
    - Microsoft 1Q Earnings Up 24%
    - Microsoft Takes Steps To Stem Declining MSN Sales
3. Breaking News
    - U.K. Grocery Chain Terminates Big Outsourcing Deal with Accenture
    - Researchers: Oracle Database Passwords Can Be Cracked
    - As Intel Stumbles, AMD's Momentum Increases
    - Rootkit-Armed Worm Attacking AIM
    - Compuware Adds Agentless Monitoring To Vantage
    - VoIP Risk-Assessment Tool Launches
    - IBM Supercomputer Hits Top Speed As Competition Looms
    - Wal-Mart: RFID Keeps Shelves Stocked
    - Anti-Spyware Group Updates Definitions
    - Feds Approve Telecom Mergers, But With Conditions
4. In Depth: Vendor Financials
    - Overstock CEO Begs Forgiveness, Then Blames IT For Losses
    - Novell Plans To Lay Off 20% Of Workforce
    - Japan's IC Makers Report Losses, Spending Cuts
    - Amazon Profits Plummet On Lawsuit Settlement
    - RealNetworks Swings To A Profit In 3Q
5. Voice Of Authority
    - Desktop Security And Vista: When Windows Passes Apple And Firefox
6. White Papers
    - Storage TCO
7. Get More Out Of InformationWeek
8. Manage Your Newsletter Subscription

Quote of the day:
"Can't anybody here play this game?" -- Former New York Mets manager Casey Stengel


1. Editor's Note: Intel Self-Destruct Mode Aids AMD Momentum

It's hard to believe a company that controls more than three-quarters of perhaps the most profitable segment of the electronics industry can simultaneously look vulnerable and weak even while posting "banner" operational results. But Intel, in reshuffling its processor road map this week, has ensured that the momentum rival Advanced Micro Devices Inc. has built over the past year will continue for at least another year.

Intel maintains that scrapping its original plans for a new Xeon processor for multi-processor servers in favor of a different platform will enable it to bring a higher-performance product to market faster than originally scheduled. That may prove true, but its customers must be wondering exactly what is going to happen over the next few months before that new processor is delivered. Will Intel meet its new delivery schedule, and will it actually deliver improved performance? The company is also delaying its next-generation Itanium processor by about six months. That comes as the Itanium has struggled with a market perception that it is a processor in search of a home as Dell and IBM have pulled back support, and only Hewlett-Packard remains to bolster the architecture among the largest system vendors.

In the past Intel has proven virtually invincible and has demonstrated an ability to quickly overcome any temporary setbacks, while AMD was simply a pesky little gnat that provided Intel with a competitor to point to whenever someone tried to cry monopoly. AMD has steadily grown its market share over the past year, and in the third quarter controlled nearly 18% of the total x86 microprocessor market.

Given Intel's continued struggles, and AMD's growing acceptance by enterprise customers, this could be a developing nightmare for Intel. For more on this topic, or to respond, please check out my blog entry.

Darrell Dunn
ddunn@cmp.com
www.informationweek.com


2. Today's Top Story

Microsoft Adds XPS In Office 12 To Fight Adobe
XML Paper Specification, codenamed Metro, is Microsoft's answer to Adobe's PDF: an electronic document format that can be printed without needing the actual application that created it.

Related Stories:
Microsoft Wins Washington Venue In Kai-Fu Lee Case

Google lost its latest motion in the case over the former Microsoft executive, as the judge nixes its attempt to have the case tried in California.

Microsoft 1Q Earnings Up 24%
The company's overall revenue guidance for the full fiscal year ending June 30 remains the same: between $43.7 billion and $44.5 billion.

Microsoft Takes Steps To Stem Declining MSN Sales
Microsoft is testing a new search-advertising platform and will unveil its next-generation hosted-services strategy next week.


3. Breaking News

U.K. Grocery Chain Terminates Big Outsourcing Deal with Accenture
J Sainsbury plc ends its troubled $3.2 billion outsourcing agreement and says it will rebuild its in-house IT expertise.

Researchers: Oracle Database Passwords Can Be Cracked
The security experts said that the password algorithm Oracle uses is weak and provides attackers several ways to break into databases.

As Intel Stumbles, AMD's Momentum Increases
AMD's share of the total x86 processor market grew to 17.6% in the third quarter, up from 16.2% in the second quarter, according Mercury Research.

Rootkit-Armed Worm Attacking AIM
Rootkits are among the most dangerous types of malware because they hide illegitimate processes and files and can trick logging functions into not recording malicious activity.

Compuware Adds Agentless Monitoring To Vantage
Compuware will unveil upgraded software for its Vantage application service-management appliance using technology from its acquisition of Adlex in May.

VoIP Risk-Assessment Tool Launches
Based on a continuously updated threats database, VoIPaudit promises to be both comprehensive and highly scalable.

IBM Supercomputer Hits Top Speed As Competition Looms
Blue Gene/L at Lawrence Livermore National Laboratory hits speed of 280.6 teraflops.

Wal-Mart: RFID Keeps Shelves Stocked
The technology has reduced out-of-stock merchandise by 16% in the stores using it over the past year, CIO Linda Dillman told financial analysts this week.

Anti-Spyware Group Updates Definitions
The coalition is honing its definitions of 'spyware' and 'adware,' with the goal of agreeing on which practices constitute the most risk, and at the same time published a guide for consumers to help them cope.

Feds Approve Telecom Mergers, But With Conditions
The Justice Department has given its OK to the SBC-AT&T and the Verizon-MCI deals; the FCC also must approve before the mergers can be finalized.

All our latest news

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You determine the nominees and you choose the winner in TechWeb's second annual Blog-X Awards. Nominate your favorite tech blog now, and be sure to return when it's time to vote for the winner!

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


4. In Depth: Vendor Financials

Overstock CEO Begs Forgiveness, Then Blames IT For Losses
CEO Patrick Byrne issued a "My Bad" mea culpa and invoked a Japanese slogan of remorse in his efforts to apologize to investors for posting a net income loss of $14.2 million for the third quarter. Byrne also blamed a schedule of overly ambitious and overlapping IT projects.

Novell Plans To Lay Off 20% Of Workforce
The layoffs of up to 1,000 people are expected to hit the SuSE Linux and consulting groups particularly hard, both in the U.S. and in Europe.

Japan's IC Makers Report Losses, Spending Cuts
With the notable exception of Toshiba, Japanese semiconductor makers are "underperforming" relative to the country's overall economy, one analyst says.

Amazon Profits Plummet On Lawsuit Settlement
Settlement of a patent lawsuit drives down the online retailer's profits 45% in its third quarter, although sales increased by 27%.

RealNetworks Swings To A Profit In 3Q
Net income increased to $11.2 million compared with a net loss of $7 million for the year-ago period.


5. Voice Of Authority

Desktop Security And Vista: When Windows Passes Apple And Firefox
Columnist Rob Enderle takes a long, hard look at security across the board--from Microsoft to open-source technologies--and seems to like what he sees.


6. White Papers

Storage TCO
The total cost of ownership is the price an organization ultimately pays for the product over an extended period of use. This paper is intended to help managers understand the TCO of storage products.


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