It turns out worldwide spending on IT by companies is proving surprisingly resilient given the circumstances, according to a new forecast by the market research firm Gartner. The firm expects overall tech spending to grow by 7.1 percent this year, representing an upward revision from a previous forecast of 5.6 percent.

In dollar terms that works out to a total forecast of $3.6 trillion. Of that, Gartner expects $419 billion to be spent on computing hardware, $268 billion on enterprise software, $846 billion on IT services, and $2.1 trillion on telecommunications. (It’s fun to type the word “trillion” and not be referring to federal spending.)

“It is a bit surprising that we have not seen a more significant impact on our global IT spending forecast as a result of the Japan earthquake and tsunami, but despite widespread concerns about disruptions to the supply of critical components in the initial aftermath of the natural disaster, there has not been a dramatic impact on overall IT spending,” Gartner’s vice president for research Richard Gordon said in a statement.

Spending on cloud services is a big factor in the forecast. Gartner says cloud-related spending is growing four times faster than IT spending, and will reach $89 billion this year. However, it’s informative to note that despite that intense growth, cloud spending amounts to less than three percent of the overall IT spend.

Even so, cloud category punches above its weight in importance. Gartner says that software-as-service applications — Salesforce.com is a classic example — account for about $10 billion, or about 10 percent of spending on enterprise software. More from Gartner here.

Satya Nadella (pictured here), the Microsoft exec who has been in charge of its Bing search effort, has been promoted to president of its Server and Tools Business.

He replaces Bob Muglia, a longtime exec who was ousted recently in CEO Steve Ballmer’s effort to shake things up at the company and stress the company’s technical expertise.

A 19-year Microsoft veteran, Nadella has most recently led the engineering efforts as an SVP in the Online Services Division, which includes Bing, the MSN portal and online advertising efforts.

“Nadella brings deep engineering and online services knowledge to $15 billion business,” said a Microsoft press release just issued.

In related news, Amitabh Srivastava, the SVP in the Server and Cloud Division who runs its Windows Azure cloud and Windows Server efforts, will leave the company. He was considered a leading internal candidate for the top job in the Server and Tools Business that Nadella got.

Both internal and external execs were eyed for the job, but it’s likely Nadella got it because of his early career in the server arena at Microsoft, as well as his experience running one of the biggest and most complex cloud efforts on the Web at Bing.

Indeed, though his efforts were costly and perhaps even futile, Nadella has had some success in innovating search for Microsoft with Bing, including delivering a well-regarded and quickly evolving product and improving market share.

He also was key in striking Microsoft’s advertising and search partnership with Yahoo.

He will have his hands full running the Server and Tools Business, which is critical to the company’s future and its cloud computing aspirations.

Microsoft said Nadella will be in charge of strategy, engineering, marketing and product development for Microsoft’s server, tools and cloud platform efforts.

“This includes developing the technology road map and vision to drive adoption of the company’s products, tools and services, and delivering the company’s next generation of cloud solutions for business customers,” Microsoft said.

Delivering such cloudtastic results will be a tall order, of course.

According to a recent post by New Enterprise’s Arik Hesseldahl:

“The Server and Tools Business is at $14.9 billion in annual revenue (fiscal 2010) Microsoft’s third largest division behind the Windows/Windows Live Division and and the Microsoft Business Division, both of which reported revenues north of $18 billion in 2010. On Muglia’s watch sales at STB grew more than 12 percent, and its operating margins went from 31 percent in 2008 to 37 percent in 2010. However, STB is nowhere near as profitable as the other two divisions: Business Division reported operating margins of 63 percent in 2010 while Windows saw 70 percent. Ballmer says in his memo that he’s eager to see stronger growth from STB.”

Here is the official press release, but more to come:

Microsoft Appoints Satya Nadella as President of Server and Tools Business

REDMOND, Wash.–Feb. 9, 2011–Microsoft Corp. today promoted Senior Vice President Satya Nadella to president of Microsoft’s Server and Tools Business.

“We’re already making strong traction across our Server and Tools Business by embracing cloud services,” said Microsoft Chief Executive Officer Steve Ballmer. “Satya has deep experience in both our server business and online services, which will help accelerate our momentum while setting the course to deliver the cloud computing scenarios of the future.”

As president of the Server and Tools Business, Nadella will oversee the overall strategy, engineering, marketing and product development for Microsoft’s server, tools and cloud platform efforts. This includes developing the technology road map and vision to drive adoption of the company’s products, tools and services, and delivering the company’s next generation of cloud solutions for business customers.

“Our server and tools business is one of the fastest growing and most profitable businesses at Microsoft,” Nadella said. “I see great opportunity for Microsoft to grow the business and also lead the way in the transformation of enterprise IT. I’m excited to work with such a high-caliber team to chart the path for our continued success today and growth in the future.”

Nadella, 43, has been with the company for 19 years and most recently led the engineering efforts in the Online Services Division, which includes overseeing the technical strategy for one of the largest cloud infrastructures in the world, spanning the company’s Search, Portal and Advertising platforms.

Nadella joined the Online Services Division in April 2007, and was instrumental in leading the technical efforts for several critical milestones such as the launch of Bing, new releases of MSN, and the integration of Yahoo! across Bing and adCenter. Under his leadership, the Online Services Division has also built a strong engineering organization by attracting some of the most experienced technical minds from within Microsoft and across the industry.

Before joining the Online Services Division, Nadella led Microsoft Business Solutions, which focuses on the Microsoft Dynamics line of enterprise resource planning and customer relationship management products, and spent several years leading engineering efforts in Microsoft’s Server Group.

As announced in January 2011, Bob Muglia, previously president of the Server and Tools Business, will leave the company this summer. Muglia will work with Nadella as he transitions to his new role leading the Server and Tools Business.

]]> http://allthingsd.com/20110209/bing-overlord-satya-nadella-promoted-to-president-of-server-and-tools-at-microsoft/feed/ 1 http://allthingsd.com/20110126/facebook-steps-up-security-after-tunisian-hacks/ http://allthingsd.com/20110126/facebook-steps-up-security-after-tunisian-hacks/#comments Wed, 26 Jan 2011 18:30:56 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=2819 Over the holidays, Tunisian Internet censors reportedly tried to gain access to their citizens’ Facebook passwords by using a keystroke logger, which Facebook’s security team worked overtime to block. Facebook’s solution to make Tunisian accounts more secure was to route them to an HTTPS server and ask users to to identify their friends in photos in order to log back in, as detailed in Alexis Madrigal’s excellent post in the Atlantic about the topic. Now Facebook is rolling out those same features to all users.

The company will soon give all users the option to use Facebook entirely over HTTPS, and recommends they do so if they use public Internet access points. It will also show members social captchas for authentication–where they must identify a few of their Facebook friends’ faces–whenever suspicious activity is detected on an account.

Facebook warned in a blog post that using HTTPS will slow down the site and isn’t compatible with all features, including some externally developed Facebook applications. It will roll out HTTPS access “slowly over the next few weeks” via its settings page, the company said.

Facebook still faces other ongoing security problems, such as spam, virus messages and wall posts. CTO Bret Taylor said yesterday the company had cut platform spam by 95 percent in 2010, but I believe he was referring to notifications and posts from applications, especially social games. Meanwhile, Facebook CEO Mark Zuckerberg’s public fan page was apparently hacked into yesterday and has since been taken down.

Please see the disclosure about Facebook in my ethics statement.

]]> http://allthingsd.com/20110126/facebook-steps-up-security-after-tunisian-hacks/feed/ 1 http://allthingsd.com/20110120/cisco-security-survey-finds-windows-vulnerabilities-and-spam-decreasing/ http://allthingsd.com/20110120/cisco-security-survey-finds-windows-vulnerabilities-and-spam-decreasing/#comments Thu, 20 Jan 2011 14:40:09 +0000 Arik Hesseldahl http://newenterprise.allthingsd.com/?p=2000
Cyber criminals have fewer ways to attack Microsoft Windows, and sent less spam in 2010 than in 2009–a first-ever decline of spam from year to year. Those are among the findings in an annual report on the state of Internet security released today by networking giant Cisco Systems.

All the security attention paid in recent years to securing the Windows desktop and the applications running on it have paid off a little, Cisco found, making it harder for computer scammers to successfully carry off their intended crimes on that platform. The trouble is they’re now starting to focus more attention on mobile devices, including Apple’s iPhone and iPad, and devices running Google’s Android operating system, Cisco said.

Meanwhile, the overall global volume of spam, which often contains troublemaking links that are used to deliver attacks, decreased for the first time ever in 2010. Even so, spam still increased in some developed countries where broadband connections are multiplying. In the United Kingdom, spam volume nearly doubled, while the volume in France went up 115 percent. The U.S. saw a slight decline–11.1 trillion messages down from 11.3 trillion in 2009. Spam in Brazil, China and Turkey also declined. Some of the decline can be attributed to last year’s arrest by FBI agents in Milwaukee of a Russian accused of being the “king of spam,” and to the shutdown of a few botnets used by scammers to send spam.

One thing about Cisco’s report that’s likely to draw some attention is its finding that the raw number of vulnerabilities on Apple products appear to be growing. Apple users are usually pretty sensitive about this topic, and any comparison of the Mac to Windows on the security front tends to make them grind their teeth and pound out annoyed comments on tech blogs. I know because I’ve done the same teeth-grinding and have in the past criticized other reports for similar findings.

Here Cisco is addressing vulnerabilities that Apple has itself documented and patched in software updates. One thing that’s not clear to me–though it sure looks like it–is whether Cisco is combining vulnerabilities found on both iOS (iPhone and iPad) and OS X (the Mac). The data it’s using is from its IntelliShield service, which tracks vulnerabilities and security incidents, and shows that over five years Apple’s vulnerabilities rose, from less than 200 in 2006 to more than 350 in 2010. That rate was higher than Microsoft and Hewlett-Packard and Cisco itself, the report found, though it goes on to say that Apple has worked harder than most other vendors to protect its users. Security is one of the reasons Apple imposes such strict rules on what’s available in the App store, though people still jailbreak their phones.

Another trend Cisco found is something called “money muling.” Tom Gillis, VP and general manager of Cisco’s Security business unit, describes money muling as using unsuspecting people who are attracted by “work at home” spam messages and Web ads to participate in money laundering by moving small amounts of money into bank accounts, just a few thousand dollars at a time. He says the operations around this are becoming increasingly elaborate, and criminals will devote a lot of effort to developing it this year.

I talked with Gillis about the report and other security trends that Cisco found. Here are a few highlights from our conversation:

NewEnterprise: So you’re seeing fewer attacks on Windows and more on mobile devices. Is that simply because there are more of them?

Tom Gillis: It’s the simple fact that there’s this new class of mobile device coming into the enterprise that used to be a phone and now it’s a computer, and it can access enterprise information. So what we’re seeing is that the raw number, but not the severity, is down on Windows. Part of this is that Windows 7 was a very good release on Microsoft’s part from a security standpoint. And we’ve got these new devices coming into the enterprise, and so we’re seeing a shift in focus of attacks on these mobile devices. They’re vulnerable to attack and they’re relevant in the enterprise. Two years ago this would have been too small a population to be meaningful.

What kind of attacks are you seeing?

It varies. In some cases there’s a little “phone home” code in a free gaming app. Pretty gentle stuff so far. But as people start using smartphones to access sensitive information we need to start thinking about security considerations on these devices. There’s a larger theme here that the whole nature of attacks is changing dramatically. The fact that spam volumes dropped at all is a big tell. For 10 years this has only gone up. We’re not forecasting a steady decline in spam, but the fact that it slowed down at all is an indicator of the shift in the way that attackers are using email. The attacks are more targeted and personal, for one thing.

Can’t some of this decrease be attributed to some of the arrests that happened last year?

It can. There’s been a handful of arrests. And they went after not only the botnet operators but other parts of the spam value chain. There are firms and entities that build botnets of compromised machines that relay the spam, and then there are other firms and entities that rent time on those botnets that do the merchandising. The biggest category is selling fake pharmaceuticals. Some of these fake pharma operations were shut down and the people associated with them arrested. It’s not an easy thing to do, because they’re global, they move around, and so to make an arrest in this space is a huge accomplishment.

So what is the thinking now about securing the mobile device?

We think there are two ways to make mobile devices work in the enterprise. The flood of devices into the enterprise is huge, and everyone wants to use them to check their email and access corporate directories and other fundamental things. There needs to be some kind of software on the end point–the phone or device. It will have to be light. You can’t have some kind of antivirus suite running on the phone. It would be a little piece of software that’s on all the time that knows when you’re behind the corporate firewall and when you’re not, and manages your connection accordingly. We bought a company called ScanSafe that has 40 data centers around the world. When you’re outside the firewall it connects to you the nearest data center and enforces your corporate policies, but all you as the user know is that it just works. This notion of being on or off the corporate network goes away. And we can do all kinds of scanning for security, independent of the device that’s being used.

This year we also saw the Stuxnet attacks, which we now know for certain were carried out against the Iranian nuclear program. Clearly this is a new kind of attack that can be mounted against industrial control systems via computer networks. Is Cisco researching this?

Massively. Often these types of attacks are targeted against Cisco’s biggest enterprise customers. Who buys Cisco’s infrastructure? The biggest banks in the world, the defense contractors. If the goal of an attacker is to disrupt an economy, their targets will be our customers, and they’re demanding a response from us. I like to call it global threat correlation, but it comes down to taking huge samples of network traffic and picking out good traffic from the bad. Cisco has a good advantage here because our equipment is so widely deployed around the world. As we start measuring traffic we can develop reputation data on every publicly routable IP address on the Internet. As we start putting telemetry info into that equipment–and the customer can choose to enable it or not, and it’s turned off by default. But people turn it on because it helps them against the unknown kind of attacks that are popping up. If a Web server says its a Web server, but you just saw it sending spam three minutes ago, there’s a pretty good chance it’s part of a botnet. Once you know that you know that, you can start to mount a pretty good defense. We’re putting a lot of energy into developing that, and it’s proven to be pretty robust.

]]> http://allthingsd.com/20110120/cisco-security-survey-finds-windows-vulnerabilities-and-spam-decreasing/feed/ 1 http://allthingsd.com/20110113/weathering-the-storm-rim-makes-its-business-case-in-boston/ http://allthingsd.com/20110113/weathering-the-storm-rim-makes-its-business-case-in-boston/#comments Thu, 13 Jan 2011 15:11:48 +0000 Ina Fried http://mobilized.allthingsd.com/?p=2394 Mobilized is trudging through the snow in Beantown Thursday to hear Research In Motion talk about its plans for the enterprise. RIM is set to talk about why businesses should bet on both the BlackBerry and the forthcoming PlayBook tablet.

The event, at the Marriott Copley Place downtown, is just getting under way. I won’t bore you with every detail, but will post whenever things get interesting.

In the meantime, enjoy this take on Angry Birds for the BlackBerry.

Update, 10:17 am ET: The intro is still going on. RIM Vice President Alec Taylor is talking about the Cuban Missile Crisis for some reason. However, RIM was nice enough to pass out slides for the whole day. Here are some of the highlights:

BlackBerry Mobile Voice System
Launching in early 2011, this is an update to RIM’s effort to unify the desk and mobile phone, offering a single identity, voiceover Wi-Fi calling, a single voicemail box, dialing office extensions and more. RIM says the new version will support more types of business phone systems.

Other features coming later this year include automatic hand-off from Wi-Fi to mobile networks, a “move call from desk” feature and more.

BlackBerry Balance
A new effort to support mixing personal and corporate data on the BlackBerry. RIM is adding features such as the ability for IT to choose to wipe only corporate information from a device or to limit users from cutting work data and pasting it into a personal application or email. Other features include warnings when sending emails or calendar invites outside of the organization, the ability to encrypt media cards and options for preventing access to work data by third-party applications.

BlackBerry client for Microsoft SharePoint
Launching in early 2011, this will bring data from Microsoft’s portal software directly to BlackBerry handhelds. It will work with both the 2007 and 2010 versions of SharePoint and integrates into a number of BlackBerry programs, including E-mail, calendar, Documents To Go and the browser.

PlayBook
As for the forthcoming tablet, RIM says it will ship with 1GB of memory, have 16GB, 32GB or 64GB of flash memory, include a 3-megapixel front-facing and 5-megapixel rear-facing camera and have micro USB and Micro HDMI ports. (I can’t remember if they have said all of that before.) The slides say only that it will ship this quarter and will be “competitively priced,” reiterating past company positioning.

According to the slides, the company also plans to talk about cloud-based device management and changes to allow one BlackBerry server to support multiple corporations.

10:35 am ET: The Cuban Missile Crisis is apparently over, and VP Pete Devenyi is now outlining the company’s business product road map and making the pitch for its strategy.

“We really do have a great story,” he says, noting that the enterprise is different from the “arms race” of the consumer market.

“It’s not just about the number of apps in App world,” he says, noting that businesses can and are building programs just for use within the corporation. Some businesses, he says, have hundreds of internal apps, none of which show up in the public storefront. BlackBerry, he says, also allows businesses better control than rivals over what programs are on a worker’s device. For example, Devenyi says, when workers change groups within a company, the programs they have access to can be updated automatically with programs deleted and added from their devices.

“That kind of power is power that no one else has,” he says. “We don’t read about that much.”

10:43 am: In addition to both the paid BlackBerry Enterprise Server and the slimmed-down free “Express” version of the server, RIM plans to launch an email system aimed directly at small-to-midsize businesses–MDaemon Messaging Server, BlackBerry Edition. The idea is to give smaller businesses a full email server that has full BlackBerry support. The product stems from an acquisition RIM made a year or two ago and offers what RIM says are features similar to Microsoft’s Exchange Server but at a fraction of the price.

The company is also launching “very, very soon” a modest update to its flagship server product, BlackBerry Enterprise Server 5.0.3. It will add more support for employee-owned devices (including the BlackBerry Balance feature described earlier), support for encrypted attachments and certification for Microsoft’s Office Communications Server 2007 R2 and the latest version, known as Lync 2010.

11:18 am: RIM is launching yet another server this year, known as the BlackBerry Enterprise Application Middleware (BEAM). BEAM, which companies would have to buy in addition to their BlackBerry email server, aims to streamline enterprise content for use on a BlackBerry. ‘What that results in is a much more efficient application than you would otherwise have,” Devenyi says. It’s in beta now, he adds.

11:25 am: BlackBerry is launching its equivalent of Find My Phone, known as BlackBerry Protect, which will allow individuals to remotely wipe or post a message if a device is lost. Protect will launch later this year, Devenyi says.

Finally, the company is talking about a number of changes it is making to the core BlackBerry Enterprise Server so that it can run via the cloud. Launching later this year, RIM will have the ability for its server product to be remotely hosted and support more than one business. It’s not clear yet if this will be RIM offering BlackBerry as a cloud-based service or if this is a product for hosting partners, though it sounds more like the latter.

11:32 am: Devenyi told Mobilized that the company is just showing the architectural changes it is making, not saying how it will bring the cloud-based capabilities to market. “We’re still working through a number of those details ourselves.” Devenyi said. “It could be both, but we are not announcing.”

11:42 am: On to the PlayBook finally. Senior Product manager Ryan Bidan gives the spiel. He says there is a lot that the company isn’t ready to share. Addressing concerns around battery life, Bidan notes the PlayBook has a 5300-miliamp battery, but doesn’t give specifics on how much battery life that will translate to.

“We’ll have good battery life,” he says. “Don’t worry about the battery life.”

Other details:
Software updates will be pushed down to the device on an ongoing basis. There will be a version of App World on the device for downloading developer-created programs.

And with that, the formal part of the event is over.

]]> http://allthingsd.com/20110113/weathering-the-storm-rim-makes-its-business-case-in-boston/feed/ 0 http://allthingsd.com/20110110/head-of-microsofts-servers-and-business-unit-leaving-this-summer/ http://allthingsd.com/20110110/head-of-microsofts-servers-and-business-unit-leaving-this-summer/#comments Mon, 10 Jan 2011 17:45:04 +0000 Arik Hesseldahl http://newenterprise.allthingsd.com/?p=1551 Microsoft CEO Steve Ballmer announced today in an email to employees that Bob Muglia, the company’s head of its Servers and Tools Business Bob Muglia will be leaving this summer. No replacement has been named. And I’m told by a source familiar that Muglia is not leaving for another job.

Muglia is a 22-year Microsoft veteran who joined from Rolm in 1988 and was the first product manager for SQL Server. The news comes as Microsoft announced a preview of its next generation Enterprise Resource Planning, Dynamics AX 6. I’m told there’s no connection between the timing of the two.

Muglia would be the third division head to leave Microsoft in recent memory. The others are Stephen Elop who left to run Nokia last year, and Robbie Bach, who ran Microsoft’s entertainment division.

Muglia only been elevated to the job two years ago, nearly to the day. The Server and Tools Business is at $14.9 billion in annual revenue (fiscal 2010) Microsoft’s third largest division behind the Windows/Windows Live Division and and the Microsoft Business Division, both of which reported revenues north of $18 billion in 2010. On Muglia’s watch sales at STB grew more than 12 percent, and its operating margins went from 31 percent in 2008 to 37 percent in 2010. However, STB is nowhere near as profitable as the other two divisions: Business Division reported operating margins of 63 percent in 2010 while Windows saw 70 percent. Ballmer says in his memo that he’s eager to see stronger growth from STB.

Muglia is described by people I’ve talked to as a capable, well-respected manager who has over the years weathered the various corporate storms that have hit him, and usually come out on top. In 2002 for instance, he was replaced as the head of Microsoft’s .Net initiative. Reports at the time said he had requested the change out of frustration with the business model. By 2003 he was running the Windows Server Division and in 2005 was tapped to run STB as a senior vice president. He’s also been the key executive on Microsoft’s Azure cloud computing platform.

Ballmer’s memo to Microsoft employees is below.

From: Steve Ballmer
Sent: Monday, January 10, 2011
To: Microsoft – All Employees
Subject: STB – Building on Success, Moving Forward

There are very few $15B businesses in the software industry, and Microsoft is the only company that has built three of them. While Windows and Office are household words, our Server and Tools Business has quietly and steadily grown to be the unquestioned leader in server computing. We have driven the industry forward and established the foundation for an entire generation of business applications. We have overcome significant competitive challenges. Over the past twenty years, the outstanding leadership from everyone involved in STB has made it a $15B business today.

We are now ready to build on our success and move forward into the era of cloud computing. Once again, Microsoft and our STB team are defining the future of business computing. In October, we completed an incredibly successful PDC where we detailed the future of the cloud, outlining Platform as a Service and demonstrating the rapid advancement of Windows Azure.

The best time to think about change is when you are in a position of strength, and that’s where we are today with STB – leading the server business, successful with our developer tools, and poised to lead the rapidly emerging cloud future. Bob Muglia and I have been talking about the overall business and what is needed to accelerate our growth. In this context, I have decided that now is the time to put new leadership in place for STB. This is simply recognition that all businesses go through cycles and need new and different talent to manage through those cycles. Bob has been a phenomenal partner throughout this process, and he and his leadership team have the right strategy in place.

In conjunction with this leadership change, Bob has decided to leave Microsoft this summer. He will continue to actively run STB as I conduct an internal and external search for the new leader. Bob will onboard the new leader and will also complete additional projects for me.

Bob has been a founder and leader of our server business from its earliest inception. He has led our Developer, Office, and Mobile Devices Divisions, and key parts of Windows NT and our Online Services business. I’ve worked with him in many capacities over the years and I’ve always appreciated his customer focus, technical depth, people leadership skills, and his positive energy. I want to thank Bob for his hard work, many accomplishments, and his focus on putting Microsoft first for 23 years.

We enter this new decade with STB providing the platform for today’s business solutions, and uniquely well-positioned to drive the future of cloud computing. I believe STB will continue to lead the industry with outstanding products and services for our customers and exceptional results for our business.

Thanks,
Steve

---

]]> http://allthingsd.com/20110110/head-of-microsofts-servers-and-business-unit-leaving-this-summer/feed/ 2 http://allthingsd.com/20110105/in-4g-race-verizon-pulls-ahead-with-pricey-speed/ http://allthingsd.com/20110105/in-4g-race-verizon-pulls-ahead-with-pricey-speed/#comments Thu, 06 Jan 2011 02:03:48 +0000 Walter S. Mossberg http://ptech.allthingsd.com/?p=1713 One of the biggest technology trends in 2011 will be the expansion of new, faster cellular networks called 4G, or fourth generation. These networks promise a big increase in speed and capacity to handle the surge in streaming video, audio and Web surfing from hot-selling devices like super-smart phones and tablets, as well as from laptops. But you’ll have to buy new phones, modems and other connected consumer devices to get the higher speed they offer.

Wireless carriers and handset makers will be touting their 4G plans and compatible devices at this week’s Consumer Electronics Show in Las Vegas, but it will be a couple of years before 4G networks in the U.S. achieve the same coverage as the current standard, called 3G.

The move to 4G from 3G began last year, with Sprint leading the way and Verizon Wireless joining in the last few weeks of 2010 with a limited deployment. But 2011 will see the service spreading to more and more cities, and is also expected to see the entry of AT&T. T-Mobile hasn’t announced an actual 4G network rollout, but is instead relying on a souped-up version of 3G that it is marketing as 4G because it claims it can deliver similar data speeds with its approach.

I’ve been testing the 4G network of the latest entrant, Verizon, in the suburbs of Washington, D.C., which is one of 38 metro areas (plus 60 airports) where the company turned on its 4G network in December. My verdict is that it’s wicked fast—the fastest 4G network I’ve tried—but also potentially costly. In my tests, with a laptop modem, it proved dramatically faster than Verizon’s 3G network, and recorded speeds on a par with some land-line Internet connections.

But 4G from Verizon won’t be cheap. For laptop modem users, at least, Verizon is charging $50 a month for up to 5 gigabytes of data use and $80 monthly for 10 gigabytes. If you run over, the company will bill you $10 for every extra gigabyte. Such data limits aren’t new, but, with 4G’s much higher speeds, users may find themselves sending and receiving more data more often, and thus breaching the limits more regularly. For instance, in my tests, I was easily able to download a nearly 600 megabyte TV show, something I wouldn’t even try with a 3G modem. That one download would have eaten up more than 10% of my monthly cap under the $50 plan.

Verizon’s first LTE laptop modem, the LG VL600, has a flip top that reveals the USB connector.

Verizon’s variant of 4G uses a different underlying technology than Sprint’s. It’s called LTE, for Long Term Evolution, and is also the 4G system being adopted by many other cellular operators around the world, including AT&T. (Technically, this first version of LTE isn’t considered true 4G by the engineering standards body that rules on such matters, but that makes little difference to consumers looking for faster connections.)

The company says it chose LTE because it is not only fast, but is less prone to interference, can provide better battery life, has less latency, or lag, and can better handle multiple users simultaneously. The LTE system doesn’t affect voice calls on Verizon’s network—it’s only for data, and operates in tandem with the current voice network.

Verizon claims its new network is up to 10 times faster than its 3G network and says consumers will see speeds of between 5 and 12 megabits per second for downloads and between 2 and 5 mbps for uploads, in “real-world, loaded network environments.”

As of this writing, Verizon doesn’t offer an actual LTE-capable smart phone, only LTE USB modems that plug into laptops. But the company is expected to offer a sneak peek at CES this week of several LTE phones that will roll out in the coming months, as well other planned LTE devices, from a variety of manufacturers. Again, I want to stress that your current Verizon phone or laptop modem can’t be upgraded to work with LTE. You’ll need a new one.

For my tests, I used Verizon’s first LTE laptop modem, the VL600 made by LG of Korea. It sells for $100 after a $50 mail-in rebate with a two-year service contract. This modem can handle data over slower 3G networks, if you happen to stray out of one of Verizon’s 4G service areas. For now, it works only on computers running Windows XP, Vista, and Windows 7. But the company says it should have Mac-compatible LTE modems in a month or so.

To use it, you have to first install, from an included CD, a new version of Verizon’s cellular modem software, VZAccess Manager. Older versions won’t work. My test machine was a Lenovo ThinkPad X301, which worked fine with a Verizon 3G modem. Installation was relatively quick and smooth, though I was immediately instructed to download an updated version of the software, so I had to go through it twice.

I disabled Wi-Fi on the ThinkPad, plugged in the LTE modem and ran 10 tests using the popular Speedtest.net website. The results were impressive. Verizon’s 4G network averaged just a shade under 16 megabits per second for downloads and 6.6 mbps for uploads. That was 15 times the download speed, and 13 times the upload speed, of a Verizon 3G modem I tested immediately afterward using the same method in the same location.

To relate these speeds to real-world scenarios, I downloaded from iTunes a standard-definition episode of the TV show “The Good Wife”—a 588 megabyte file—in just seven minutes, instead of the two hours or so iTunes predicted it would take when I was using the 3G modem. I streamed several long videos, including two in HD, from the Web, and they played smooth as silk.

But there are caveats. For one thing, hardly anyone is using this new Verizon network yet, and it’s likely to slow down as it gets crowded, especially with smart-phone users. Secondly, laptop cellular modems typically deliver faster speeds than phones, so my results don’t necessarily predict phone or tablet performance.

Also, speeds can vary by city and distance. My tests were mainly conducted against a server in my local D.C. area. But I also tried a few tests against a server in San Francisco and only got about 6 mbps download—within Verizon’s claims, but much slower.

Still, if you can afford it, and if it works well in phones and tablets, Verizon’s new LTE network could be a great boon to your digital lifestyle.

Find all Walt Mossberg’s columns and videos at the All Things Digital website, allthingsd.com.

]]> http://allthingsd.com/20110105/in-4g-race-verizon-pulls-ahead-with-pricey-speed/feed/ 0 http://allthingsd.com/20110104/delicious-red-sea-parted-users-wander-to-other-bookmarking-services/ http://allthingsd.com/20110104/delicious-red-sea-parted-users-wander-to-other-bookmarking-services/#comments Wed, 05 Jan 2011 04:35:13 +0000 Voices http://voices.allthingsd.com/?p=34779 Since Yahoo’s plans to “sunset” popular bookmarking service Delicious leaked last month, it is natural to assume that users would be looking elsewhere to store their link libraries.

What we didn’t know, until now, is how greatly other link services would benefit from news of the closure.

Late last week, Delicious competitor Pinboard tweeted a link to a screenshot of its traffic graph from the couple of days following the Yahoo leak, overlaid on more-typical traffic from previous days.

The sea-foam green area is Pinboard traffic after the leak, in number of server requests per minute (not unique or new visitors, which would undoubtedly be far lower).

The tiny blue and purple areas beneath represent typical request rates.

You can click on the graph to see it in full size, though the sense of scale speaks for itself.

]]> http://allthingsd.com/20110104/delicious-red-sea-parted-users-wander-to-other-bookmarking-services/feed/ 0 http://allthingsd.com/20101229/skype-post-mortem-overloaded-servers-and-desktop-bugs-brought-us-down/ http://allthingsd.com/20101229/skype-post-mortem-overloaded-servers-and-desktop-bugs-brought-us-down/#comments Wed, 29 Dec 2010 15:56:21 +0000 Arik Hesseldahl http://newenterprise.allthingsd.com/?p=1136 Skype today published a lengthy postmortem explanation concerning why its service went down for the better part of two days last week.

CIO Lars Rabbe says in a blog post that a set of support servers responsible for Skype instant messaging became overloaded, and as a result sent delayed responses. A bug in the latest Windows version of the Skype desktop software failed to process these delayed responses, causing them to crash. About half of the world’s Skype users who were signed on at the time the problem began were using that version of the software, and of those, about 40 percent crashed. Among them were users whose machines were serving as supernodes. Rabbe says as many as 30 percent of the Skype network’s supernodes were among the crashed machines.

Losing those supernodes increased the load on other still-functioning supernodes, which was compounded by all the crashed Windows users trying to restart their software and get back on the network. He says traffic to these supernodes surged to 100 times normal volume for that time of day.

What he doesn’t go into great detail about was why the instant messaging servers became overloaded in the first place. Was this another bug in the server software? It’s a little unclear from this explanation.

Rabbe says Skype is trying to learn from the incident and has instituted new procedures to try to prevent this sort of thing from happening again. But this can’t help but hurt its reputation as it looks for ways to diversify its base beyond the millions of free users it has and make some actual money.

The whole reason Skype is supposed to work as well as it usually does is the strength and resilience of the network, and the fact that the network gets stronger as more people are signed on to it. To say that two bugs in a strange confluence of events could bring that entire network down raises a lot of fundamental questions about Skype.

Rabbe says an investment program to increase capacity to support paid consumers and enterprise customers is underway and will continue into 2011. I’m betting Skype will speed it up.

]]> http://allthingsd.com/20101229/skype-post-mortem-overloaded-servers-and-desktop-bugs-brought-us-down/feed/ 2 http://allthingsd.com/20101221/microsoft-plans-to-talk-windows-on-arm-at-ces-but-products-a-ways-off/ http://allthingsd.com/20101221/microsoft-plans-to-talk-windows-on-arm-at-ces-but-products-a-ways-off/#comments Wed, 22 Dec 2010 01:42:02 +0000 Ina Fried http://mobilized.allthingsd.com/?p=1230 After many months of working in secret, Microsoft is nearly ready to start talking about its plans to bring Windows to ARM-based processors.

However, while the company is set to discuss the effort at next month’s Consumer Electronics Show, there is still a lot that must be done before such products can hit the market.

Among the steps needed is for hardware makers to create ARM-compatible drivers, a time-consuming effort that explains in part why Microsoft is talking about the initiative well ahead of any products being ready.

It took Microsoft years, for instance, to move mainstream Windows users from 32-bit versions of the operating system to 64-bit versions, in large part because it took that long to get all of the necessary hardware drivers to enable the shift.

Microsoft has scheduled a press briefing for 1 pm PT on Jan. 5, ahead of Steve Ballmer’s keynote later that night. The event is expected to be the forum where Microsoft will discuss the ARM effort. A Microsoft representative declined to comment on the reported ARM move.

However, speculation about such a move has been increasing since the two companies signed an expanded licensing agreement back in July. Microsoft was deliberately vague at the time regarding the impact of the new agreement, making reference to then-existing efforts such as Windows Embedded and Windows Mobile.

“ARM is an important partner for Microsoft and we deliver multiple operating systems on the company’s architecture,” Microsoft general manager KD Hallman said in a July statement. “With closer access to the ARM technology we will be able to enhance our research and development activities for ARM-based products.”

Moving to ARM processors as an option for full-fledged Windows could pave the way for machines with significantly longer battery life–an issue that has become more important as competing mobile devices, especially tablets and smartphones, have been able to best the PC in that regard.

While much of the speculation regarding ARM-based Windows machines has centered on the impact this could have on tablets, the move is said to be as much about netbooks and low-power notebooks as it is about slates.

Though the Windows tie to Intel-architecture chips is legendary, it’s not the first time that Windows has run on chips other than the standard fare from Intel and Advanced Micro Devices. Windows once ran on chips from Digital Equipment, and Microsoft has also done server versions that supported Intel’s Itanium chip. However, such efforts are expensive and time-consuming. The fact that Microsoft is going ahead with the undertaking highlights the size of the threat posed by devices running on the lower-power-consuming ARM chips.

Although CES is an unusual venue to reach PC hardware makers, it does provide a big stage for Microsoft to reconfirm that it is serious about playing in the ultramobile device category.

Bloomberg first reported Microsoft’s plans to bring Windows to ARM earlier on Tuesday.

]]> http://allthingsd.com/20101221/microsoft-plans-to-talk-windows-on-arm-at-ces-but-products-a-ways-off/feed/ 0 http://allthingsd.com/20101215/heres-your-itunes-in-the-cloud-for-your-iphone-but-from-mspot-not-apple/ http://allthingsd.com/20101215/heres-your-itunes-in-the-cloud-for-your-iphone-but-from-mspot-not-apple/#comments Wed, 15 Dec 2010 14:00:48 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=27066 At this point it seems pretty safe to say that we’re not getting any “iTunes in the cloud” music service from Apple in 2010. But you can get a version of that concept, on your iPhone, today, for free.

Apple has approved developer mSpot‘s music app, which does what Apple hasn’t done yet but may well do at some point: It takes your music from your PC, moves it to a server and lets you pull down tunes to your iPhone whenever you want.

Or at least in the immediate future. Given that mSpot has yet to reach any licensing deals with music labels or publishers, I’m not sure how long the service can keep going. But we can get back to that in a minute.

First the details: MSpot lets you synch up to two gigabytes of music from your hard drive to its servers, and then stream it via another PC’s browser, or download it to your phone via 3G.

Because mSpot compresses your files, those two gigs will translate into a lot more music on your phone (at a much lower fidelity) than they do on your computer. But if you want more storage you can get another 40 gigs for $3.99 a month.

This is roughly the same idea that both Apple and Google have discussed with the music industry for much of 2010, but neither of those two heavyweights has the licenses it needs to launch. How can mSpot pull it off?

Good question. The answer is that mSpot CEO Daren Tsui argues that he doesn’t need a license, for a variety of reasons.

I’ll spare you the technical details, but common sense supports his position–why shouldn’t you be able to move your music from one machine to another? And the law, via the Digital Millennium Copyright Act, may be on his side as well.

But so far the big labels have argued that the big guys do need licenses to offer cloud services (short version–they say that moving music to the cloud and back constitutes a new use). And Tsui has in fact been trying to get an agreement with the labels for much of this year.

He’s already had this service running on Google’s Android platform since late June without a legal problem, so that can give him some confidence that the labels won’t take him to court. But that’s not a guarantee.

For starters, the labels are already suing Michael Robertson’s MP3tunes, which uses a similar concept. And it’s not uncommon for the labels to negotiate with music start-ups, then move on to lawsuits if things hit an impasse.

And if Tsui does strike a deal, that means he needs to start paying the labels. How’s he going to do that and keep offering the service for free? By offering new paid options and cutting the music guys in on a piece of that revenue, he says.

So we’ll see! Note that Spotify, which has a lot of buzz, 700,000 paying users and some deep-pocketed investors, has yet to get its music service licensed in the U.S.

And mSpot is a much smaller fry. The Android app has a million downloads so far and some 500,000 registered users. And the 6-year-old company raised $2.3 million in 2005, and that’s it. But Tsui says mSpot is profitable on revenue from other media services it sells.

Here’s hoping he gets to spend that money building cool stuff, not hiring lawyers.

]]> http://allthingsd.com/20101215/heres-your-itunes-in-the-cloud-for-your-iphone-but-from-mspot-not-apple/feed/ 5 http://allthingsd.com/20101202/oracle-sets-database-speed-record-larry-ellison-disses-hp/ http://allthingsd.com/20101202/oracle-sets-database-speed-record-larry-ellison-disses-hp/#comments Thu, 02 Dec 2010 23:53:12 +0000 Arik Hesseldahl http://newenterprise.allthingsd.com/?p=107 Oracle CEO Larry Ellison is having a big day. On the day of the premiere of a high-profile Bloomberg TV documentary that promises to burnish his legend, he also got to brag that Oracle had retaken the current land speed record in database computing from IBM.

Of course he used the opportunity to engage in his favorite new hobby: Taunting rival Hewlett-Packard.

The announcement was straightforward. Oracle’s forthcoming SPARC T3-4 Supercluster has achieved a performance record of more than 30 million transactions per minute, as verified by the Transaction Processing Performance Council, an industry benchmarking organization. This bested the previous record holder, a model of IBM’s Power 780 Server, which delivered more than 10 million transactions per minute.

Farther down on the TPC’s list, in fifth position, is HP’s Integrity Superdome, clocking a performance of a little more than 4 million transactions per minute. Oracle is using the results in ads that portray Oracle as a cheetah, IBM as a respectable stallion and HP as a poky turtle. (Full disclosure: This ad ran in today’s print edition of The Wall Street Journal, which like this Web site is owned by News Corp.)

At this point in his remarks, Ellison beat the war drums against HP rather loudly: “We think the HP machines are vulnerable. We think they’re expensive. We think they’re vulnerable in the marketplace. We’re going to go after them. We’re going to go after them in the marketplace with better software, better hardware, and better people.”

I’ve asked HP for a response, and will update if I get one. [Update: And here it is, courtesy of company spokesman Michael Thacker: "HP is the number one provider of enterprise servers in the marketplace. We are focused on our customers, and the combination of our technology leadership, product performance, and pricing continues to meet the needs of those customers. The numbers prove it--we experienced 25 percent revenue growth year over year during our last quarter, and we are the only major UNIX vendor that reported server growth."]

[Another update: An HP spokesperson just sent the following additional statement: "Larry Ellison bought a money-losing business that had steady market share declines for years, and which still ranks at the bottom of the market. Customers aren’t fooled by outdated benchmarks, no matter what Oracle says. HP’s market share results prove it. Sun customers are running to HP in droves because they recognize we deliver superior technology, performance and pricing."]

One thing HP and IBM have going for them is that the Oracle system in question won’t be on the market until next June.

]]> http://allthingsd.com/20101202/oracle-sets-database-speed-record-larry-ellison-disses-hp/feed/ 5 http://allthingsd.com/20101111/angelpad-an-incubator-for-entrepreneurs-with-credentials/ http://allthingsd.com/20101111/angelpad-an-incubator-for-entrepreneurs-with-credentials/#comments Thu, 11 Nov 2010 19:12:20 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=254 AngelPad, the new incubator created by former Googlers, held its first end-of-session Demo Day last night at its office on a dead-end alley in San Francisco’s SOMA district. It was a familiar format for those who have been to Y Combinator and TechStars Demo Days, and indeed just about every one of the hundred or so investors in the room is a frequent presence at those events.

Thomas Korte

AngelPad is captained by the amiable and energetic former Google product evangelist Thomas Korte, who brought in many of the eight participating start-ups from his personal connections. They included somewhat typical tech start-up fare: A couple of Web curation tools (Curated.by and Snip.ly), a get-together planning app (RollCall) and a simpler interface for selling your stuff online (EggCartel). There was also a user-generated outdoors site (AllTrails) and an app that tracks the energy consumption of computers and other devices (Hug Energy).

Probably the most notable difference between AngelPad and other incubators is the level of high-profile experience most of its founders already have. At least half seemed to have worked on product and engineering at Google, and others come from established companies like Microsoft, Yelp, Playdom and RockYou.

(Also, is it just me, or does the name AngelPad scream for a reality show that would be sort of like “Real World” mashed with “Top Chef” about Silicon Valley start-ups?)

After the demos, I asked MoPub founder Jim Payne, who managed product for Google Maps Premier and AdMob metrics, what he and his co-founders thought the AngelPad differentiator is. He said, “As compared to Y Combinator?” I said, “First of all, as compared to doing this outside an incubator.”

Payne replied that he “wouldn’t and couldn’t” have started his company without an incubator, and that taking that route would be forcibly sitting yourself and your start-up “out in the weeds.”

MoPub is a mobile ad server, and will soon announce its first round of funding, said Payne. He and other AngelPad participants said they liked the small size of the program and the more free-form curriculum as compared to more established incubators.

Sean Plaice of Hug Energy at AngelPad's first Demo Day

Bill Tai of Charles River Ventures, who had been chatting with Payne when I walked up, bid him goodbye with the admonition to let Tai get in on the MoPub round. Tai told me that he thought MoPub and Adku were the most interesting of the AngelPad eight. Adku wants to help e-commerce sites optimize what products they are featuring using real-time data mining about what’s relevant to a visitor’s location and demographic.

Tai said he agreed that founders in the first AngelPad class do have more experience, particularly at large companies. But he added that’s not necessarily always an asset. “At Y Combinator there may be a higher probability of a breakout idea,” Tai said, “because less-experienced people don’t have context.”

]]> http://allthingsd.com/20101111/angelpad-an-incubator-for-entrepreneurs-with-credentials/feed/ 0 http://allthingsd.com/20101014/yahoos-outage-not-so-perfect-timing/ http://allthingsd.com/20101014/yahoos-outage-not-so-perfect-timing/#comments Thu, 14 Oct 2010 21:32:53 +0000 Kara Swisher http://kara.allthingsd.com/?p=35606 Yahoo is never down.

So the fact that its massive Web site is showing a “server outage” sign and little else is pretty astonishing.

And not in a good way, since the company is in the midst of a swirl of takeover rumors, executive turmoil and worries about weak earnings next week.

But, until now, Yahoo’s powerful homepage always works, especially compared to other Web sites. Over its long history, in fact, it has been the polar opposite of Fail-Whaling Twitter.

BoomTown is awaiting info from Yahoo PR, which acknowledged “periodic outages.” It is still down for me and many others who have emailed

But the Silicon Valley company has no specifics as yet, beyond this statement to the media:

“For a brief period this afternoon, Yahoo.com was inaccessible to some users. We have identified the issue and are working to correct it immediately. We know that this may have caused some inconvenience and we apologize to our users who might have been affected.”

Here is a screenshot we just took:

]]> http://allthingsd.com/20101014/yahoos-outage-not-so-perfect-timing/feed/ 10 http://allthingsd.com/20100729/liveblogging-microsofts-financial-analyst-meeting-its-a-beautiful-day/ http://allthingsd.com/20100729/liveblogging-microsofts-financial-analyst-meeting-its-a-beautiful-day/#comments Thu, 29 Jul 2010 15:24:42 +0000 Kara Swisher http://kara.allthingsd.com/?p=31378

BoomTown took the corporate All Things Digital jet–aka Virgin America, seat 10A–up to Redmond, Wash., today to attend Microsoft’s annual Financial Analyst Meeting, which also includes a passel of media drones like me.

I will be liveblogging the event all day, which is essentially a cavalcade of top execs from the software giant taking the stage and showing off their wares.

There should be a little bit of swanning, since Microsoft (MSFT) turned in very good financial results last week, posting a huge increase in earnings and revenue due to the uptick in PC sales and the intro of the Windows 7 operating system. Losses at its Online Services division remained high, so thank goodness for servers and tools!

Here we go:

8:15 am PT: I was late due to the completely confusing streets of suburban Redmond, all of which look exactly alike, as does every building on Microsoft’s sprawling campus. I am a streets of San Francisco girl, obvi.

In the Conference Center, though, things had not started well past the 8 am start time, as we await the entry of investor dude Bill Koefoed.

U2′s “Beautiful Day” was playing over the sound system, which it was not up here in the Pacific Northwest this morning–it was kind of cold and gloomy, a la “Twilight”–but hopefully will be for sparkly Microsoft execs. We’ll see!

Finally, Koefoed came out and started in on feedback, touting the newly renovated investor relations site, which he is “pretty proud of.” It is nice looking, as are most of Microsoft’s hand-out materials.

In fact, he sent me an excited note last week, because I posted Microsoft’s pretty fourth-quarter slides.

Dear Bill: You need much better things to get excited about! Like the new Magic Trackpad from Apple (AAPL)! Wait, I mean Windows Phone 7!

Koefoed moved quickly to point out last week’s strong results, which is no surprise. When you’ve got lemonade, make more lemonade!

Then he outlined the various Microsoft’s eight “core” businesses, such as Xbox, Bing, Microsoft Office, Windows Azure and, of course, Windows, that the company will be going over.

That’s a lot of core, isn’t it?

Some questions to be answered: Business PC refresh and share momentum? Impact of iPad/slates? Windows 7 phone? Expense control?

Beautiful or not, it was going to be a looooong day.

8:42 am: A jaunty Kevin Turner, Microsoft’s COO, bounded out. He tried to get the crowd more lively, but this was not to be unless there was a lot more coffee.

I had great hopes for a goofy quote this morning from Turner, who declared at the Microsoft Worldwide Partner Conference earlier this month about Apple’s antenna controversy: “It looks like the iPhone 4 might be their Vista, and I’m okay with that.”

I don’t know about you, but insulting a competitor by shooting off your own foot is a gift that keeps on giving to me.

In any case, Turner said Microsoft was now “leading with the cloud,” a move that the company had been resisting in the past. Now: All in!

He outlined all the various services for business customers. “We are the market leader in cloud services for business,” said Turner, noting Microsoft had been too quiet about the inevitable move of data and software services to big services in the digital sky.

(Actually, in its secret heart, Microsoft was hoping this whole Internet thing would go away and it would be back to a PC on every desktop, but that horse has left the barn, so it’s cloud time!)

Next up for Turner: The much deserved popularity of Windows 7. Of course, since Vista was Microsoft’s Antennagate–except much, much, much worse–it was not hard to be better.

Turner then moved on to bashing Google (GOOG) and other competitors. Turner put up some quotes from Jaguar employees, after the car company switched to Google for email and other services.

One said Google was like vinyl seats. Ziiiiing!

Next Turner victim: VMware (VMW)! He claimed its products were pricier and not cloudy enough.

As for Linux: Meh!

Oracle (ORCL): Customers don’t want to be locked into the land of Larry Ellison!

Cisco (CSCO): Just you wait, John Chambers!

9:19 am: Turner headed off and Chief Research and Strategy Officer Craig Mundie started in on his speech, titled “Reimagining Microsoft’s Future.”

That would be the client plus the cloud, natural user interface and something he called “working on your behalf.”

Mundie launched into his future-dude schtick, but he’s not exactly Alvin Toffler, so I started desperately mainlining the caffeine.

He talked about movable data centers, the “Internet of Things” and other cloud innovations, but there is no new idea here to blow your mind.

Is it too much to wish Mundie would talk about an invisibility cloak? Instead, it was the orchestration of data authority.

That will apparently be a new data marketplace product, codenamed Dallas, to shop for giant data sets and more.

Mundie than showed off some personalization-driven features in the Bing search service, which are also not new concepts.

For example, he showed a menu, embedded in a table, that might know what you like to eat at a particular restaurant you frequent.

This is what would be on my table and there is no need of a fancy computer table to know this: Donuts, donuts, donuts.

Speaking of which, FAM minions: Where the heck were my donuts?

Mundie then moved onto Kinect, once called Project Natal, the actually cool gesture interface for gaming that will be available for Xbox soon.

Finally, he finished up with a video clip of a medical triage assistant. Great, even less customer service from hospitals. The demo was flatly freaky.

The morning session wrapped up with a visit to the technology showcase to “expect the unexpected,” although I was not expecting that in any way, and then it was off to lunch.

Next up in the afternoon session: CEO Steve Ballmer at 1 pm PT.

]]> http://allthingsd.com/20100729/liveblogging-microsofts-financial-analyst-meeting-its-a-beautiful-day/feed/ 2 http://allthingsd.com/20100625/microsoft-comms-head-smacks-back-by-the-numbers-plus-a-rocky-inspired-internal-email/ http://allthingsd.com/20100625/microsoft-comms-head-smacks-back-by-the-numbers-plus-a-rocky-inspired-internal-email/#comments Fri, 25 Jun 2010 20:33:09 +0000 Kara Swisher http://kara.allthingsd.com/?p=29821

After what he considered weeks of unfair press coverage and running down of Microsoft (MSFT), the software giant’s Corporate VP of Corporate Communications, Frank Shaw, posted a pugnacious corporate blog entry today that trotted out some impressive numbers about Microsoft’s business.

Of course, he also took the opportunity to put up some not-so-much figures about competitors such as Apple (AAPL), Netflix (NFLX), Salesforce.com (CRM) and, of course, Google (GOOG).

My favorite dig is the stat on the “percent chance that Salesforce.com CEO [Marc Benioff] will mention Microsoft in a speech, panel, interview, or blog post.” The answer, natch: 100!

As it turns out, that was a follow-up to a very sharply worded letter Shaw sent out to communications teams across Microsoft (MSFT) earlier this month, obtained by BoomTown, in which he noted at the start:

“It has been a rough couple of weeks for us from a coverage standpoint. It seems like every time I turn on the computer, or talk to a reporter, or pick up a publication at home, or do a scan of my RSS feeds or Twitter client that I see more stories and opinions about the challenges we have, and how great some of our competitors are doing. iPad this, Droid that, sheesh.”

Sheesh? Who says that anymore?

Still, I like his gumption in using it! Thus, Shaw–who is an active blogger and Twitter poster–is apparently mad as heck and not going to take it anymore!

Here’s the blog post below, followed by the internal email Shaw sent (apparently inspired by the landscape at our eighth D: All Things Digital conference earlier this month):

Microsoft by the numbers

25 Jun 2010 12:30 PM

You probably saw the news this week that we’ve sold 150 million Windows 7 licenses in 8 months. That’s more than 600,000 per day. And, perhaps fittingly for a product called Windows 7, it adds up to 7 copies every second of every day since launch.

As a communications guy, I’m generally most comfortable with words. But since Microsoft is a pretty numbers-driven company, the Windows 7 milestone got me thinking about some *other* numbers, too.

Of course, numbers are only one dimension of a story. And we live in a hyper-competitive industry, with loads of challenges to go along with loads of opportunity. All the same, with Windows 7, Office 2010, Bing, Xbox 360, Kinect, Windows Phone 7, our cloud platform, and many other products, services and happy customers, 2010 is shaping up as a huge year for us.

So, without further ado, a few of my favorite numbers:

1

150,000,000
Number of Windows 7 licenses sold, making Windows 7 by far the fastest growing operating system in history.[source]

2

7.1 million
Projected iPad sales for 2010. [source]

58 million
Projected netbook sales in 2010. [source]

355 million
Projected PC sales in 2010. [source]

3

>10
Percentage of US netbooks running Windows in 2008. [source]

96
Percentage of US netbooks running Windows in 2009. [source]

4

0
Number of paying customers running on Windows Azure in November 2009.

10,000
Number of paying customers running on Windows Azure in June 2010. [source]

700,000
Number of students, teachers and staff using Microsoft’s cloud productivity tools in Kentucky public schools, the largest cloud deployment in the US. [source]

5

16 million
Total subscribers to largest 25 US daily newspapers. [source]

14 Million
Total number of Netflix subscribers. [source]

23 million
Total number of Xbox Live subscribers. [source]

6

9,000,000
Number of customer downloads of the Office 2010 beta prior to launch, the largest Microsoft beta program in history. [source]

7

21.4 million
Number of new Bing search users in one year. [Comscore report--requires subscription]

8

24%
Linux Server market share in 2005. [source]

33%
Predicted Linux Server market share for 2007 (made in 2005). [source]

21.2%
Actual Linux Server market share, Q4 2009. [source]

9

8.8 million
Global iPhone sales in Q1 2010. [source]

21.5 million
Nokia smartphone sales in Q1 2010. [source]

55 million
Total smartphone sales globally in Q1 2010. [source]

439 million
Projected global smartphone sales in 2014. [source]

10

9
Number of years it took Salesforce.com to reach 1 million paid user milestone. [source]

6
Number of years it took Microsoft Dynamics to reach 1 million paid user milestone. [source]

100%
Percent chance that Salesforce.com CEO will mention Microsoft in a speech, panel, interview, or blog post.

11

173 million
Global Gmail users. [source]

284 million
Global Yahoo! Mail users.[source]

360 million
Global Windows Live Mail users.[source]

299 million
Active Windows Live Messenger Accounts worldwide. [Comscore MyMetrix, WW, March 2010--requires subscription]

1
Rank of Windows Live Messenger globally compared to all other instant messaging services. [Comscore MyMetrix, WW, March 2010 - requires subscription]

12

$5.7 Billion
Apple Net income for fiscal year ending Sep 2009. [source]

$6.5 Billion
Google Net income for fiscal year ending Dec 2009. [source]

$14.5 Billion
Microsoft Net Income for fiscal year ending June 2009. [source]

$23.0 billion
Total Microsoft revenue, FY2000. [source]

$58.4 billion
Total Microsoft revenue, FY2009. [source]

fxs

It has been a rough couple of weeks for us from a coverage standpoint. It seems like every time I turn on the computer, or talk to a reporter, or pick up a publication at home, or do a scan of my RSS feeds or Twitter client that I see more stories and opinions about the challenges we have, and how great some of our competitors are doing. iPad this, Droid that, sheesh. Even BusinessWeek got into the act, taking some unfair shots at Natal under the guise of looking at our consumer strategy all up. Man, when someone is beating on Natal prior to E3, you can bet we’ve got momentum against us.

Sitting there at the All Things Digital conference last week and hearing from our competitors really got me thinking, though. What is our differentiation? Why do we make certain decisions? What drives the way we think about business and technology? The morning after the Steve Jobs q&a (which everyone should watch), I dragged myself out of bed to go for a run. As I’d driven into the hotel, I noticed with a sinking feeling that there were lots of hills. I asked the desk clerk if they had a jogging map. They did not. I asked if he could point me a direction that did not have a bunch of hills. He laughed and pointed “up” the driveway and said that if I turned left there would be a nice running path. “I drove in that direction,” I said. “Seems like it’s uphill.” He shrugged, and away I went. Up.

And to keep my mind off the elevation gain, I was thinking about that previous question–what drives Microsoft? Coming up the second hill, I got it. Fundamentally, we believe that we have the opportunity to make life better for billions of people around the world through our products and services. Not millions, not tens of millions, but billions. We started with the idea of a computer on every desktop, and even though the computer looks a lot different today than it did those years, and even though the developed world probably does have a computer on every desk, there are still billions more to go, and we are going to get there. And when you start thinking about serving billions, which we do, we’re playing a game that nobody else in the industry is. I don’t know about you, but I come to work thinking about what I can do to help w/ that big goal. And it’s not all altruism and unicorns, when we do a great job of creating products that make life better for billions, it makes us better as a company, we sell more, we learn more, our partners do better, we do better. And when you have big dreams and big ambitions (like we do) and when you set the bar high (which we do) then sometimes we don’t get over the bar. There are people in the world that see that and call it failure; but failing to hit the mark doesn’t mean quitting. That’s part of our culture, too.

The run back to the hotel was easier. I even scrambled up a bluff next to the path (imagining the theme to “Rocky” in my head) and stood looking out over the Pacific for a bit. And I thought about our challenges, internal and external. External is easy. Internal is harder.

There is a saying I’ve heard a bunch since I’ve been at Microsoft: “Hope is not a strategy.” Heck, I’ve used it myself, and felt pretty superior while saying it, since I was talking about something I didn’t really own. But standing on the bluff, I wondered.

In my last mail, I referenced the need for us all to be comfortable in the gap between what is and what we desire to create. If we simply live in what we have, we become cynics. And if hope is not a strategy, then neither is cynicism, and we have lots of cynics among us. It is a challenge, especially for those of us who help tell our story. I often see it used, and use it myself, to cover up the pain of not meeting a goal, or seeing a product/service be ill-received by the market. If I am able to mock and sneer, then nobody outside the company can make me feel worse at setbacks and even failures.

As the evangelists for the company, we must guard against this. Hope can’t be a strategy, but it (and its cousin belief) is a needed ingredient in any success. Think about this for a bit. Each and every one of us needs to be grounded in our challenges and our wins. Right now, we are massively over-indexed in thinking and knowing about our losses and challenges. But what of our wins?

At the conference later that day, I had a chance to engage in a spirited and mostly friendly discussion with some folks who thought we were doing a crap job all up. Stock price flat, no iPad, etc. Instead of shrugging and agreeing, I talked about our wins and our momentum. We’ve built a huge server business over the last decade, something else nobody has done. Windows 7 sales are up about 39 percent year over year, against a huge base. Office 2010 beta largest ever, Office is in the cloud. Bing is one year old, 4 points of market share–nobody has grown search market share against Google but we are doing it. They are copying our look, our home page. New Hotmail is driving them to offer something other than threaded email for Gmail. Xbox Live has 23 million users–again, only two companies in the last decade have built subscription services like this (Netflix is the other). Windows Azure has 10,000 paying customers, we just announced 700k deployment of live@edu, probably the largest cloud deployment in the world. Natal is coming, it’s cool. Yes, we want to (and will) do better in phones. Yes, we want to (and will) have more cool thin slate/tablet/other form factor devices that run Windows. I’ll tell you, while I don’t think I created any true believers, I did force people to think differently about Microsoft and what we’re doing, and I call that a win.

This is our job. We don’t just represent the products and services we work on, we represent the company all up. Be ready to tell that story. Tell it to your co-workers here at Microsoft, to your family and friends, to members of the media. They know about our challenges, they don’t know about our wins and momentum. So tell them.

fxs

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