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Wednesday, November 24, 2010

Microsoft Looking Like An End-Stage Company - InformationWeek

I believe that Microsoft as we know it may not be around in another decade--maybe not even in five years. There's hardly a single tech industry trend line pointing in Redmond's favor right now, and some of those curves are about to get a lot steeper, real fast.

So it's hardly surprising recent Microsoft-related news has been pretty much on par with where things stand for the company these days—mostly all bad.

Explorer's market share has fallen below 60% for the first time in recent memory, the software maker has largely conceded the only way it can compete in smartphones is through the courts, and so it sued Motorola (and, by proxy, Android developer Google), and Microsoft's board deemed CEO Steve Ballmer's performance over the past fiscal year so mediocre that it slashed his bonus.

Most significantly, Microsoft waived the white flag on social media when it pulled the plug on Windows Live Journal, dumping the blogging platform's users onto the open source WordPress system. Think about it: Microsoft, still the world's largest software company by revenue, is so clueless on Web 2.0 it can't make a simple blogging platform people will actually use. There's probably thousands of middle-schoolers creating blogging software in their spare time between Social Studies and Gym class, but Microsoft can't compete in the space?

What's that say about its chances in mobile, or search, or tablets, or any of the other growth markets that are driven by younger professionals' demands for tools that are social, collaborative, instant, and always on?

Microsoft's defenders, and Microsoft itself, point to the company's lock on the PC operating system market (more than 90%) as proof it's still a dominant player that controls a bunker from which it can generate piles of cash and withstand reversals in other segments.

But that's just whistling past the graveyard, spouting a tune written from backward-looking data not particularly useful for gauging the impact that hugely disruptive new products like tablets and smartphones and even tablet-smartphone hybrids are about to have on Microsoft's place in IT. Market research group NPD recently found that 13% of iPad users bought the Apple OS-based device instead of a Windows PC. That's a hugely significant number for a product that didn't even exist a year ago. Just wait until it gets more features, and comes down in price. And do you know anyone under 30 who uses anything but a phone for the bulk their personal computing and communications needs these days?

Microsoft's Windows Phone 7 will hit stores in November, but most analysts believe the offering, though slick in many respects, is too little, too late to meaningful bolster the company's meager 5% share of the mobile OS market.

Where does all this leave Microsoft? Out in the cold within just the next few years unless big changes are made—and those changes need to start at the top. The best thing Ballmer can do to preserve his legacy and ensure he's not Microsoft's last CEO is to start assembling a new management team that can build a foundation for real change--and rid the company of its PC-centric focus.

Ballmer has said he wants to stick around until about 2018. But realistically he's only got a couple of years to make Microsoft a leader in the categories that matter going forward—cloud, social media, mobile, and tablets. If he fails, he'll be out the door, possibly within months if Windows Phone 7 turns out to be as big a bomb as the KIN phone. If that happens, Microsoft's status as a tech industry leader won't be too far behind him.

Are your star players about to bolt? You need to know before the job market warms up. That story and more in the new, all-digital issue of InformationWeek's Boardroom Journal. Download it now (registration required).


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YouTube Co-founder Hurley Steps Down Amid Reorg - eWeek

Google's reorganization of YouTube continued this week with the revelation that YouTube co-founder Chad Hurley was stepping down to work on other services at the search engine.

Hurley, the face of YouTube since he and fellow co-founders Steve Chen and Jawed Karim sold YouTube to Google in 2006 for $1.65 billion, will serve as an adviser.

"I will continue to serve as an adviser and am excited to witness the next phase of YouTube's growth," Hurley said in a statement.

That growth to this point includes 24 hours of video uploaded per minute, with more than 2 billion videos watched daily.

Google also said this month it is making money from more than 2 billion views per week, with YouTube leading Google's display ad business to a $2.5 billion run rate.

The move, which TechCrunch uncovered Oct. 28, comes more than a month after YouTube reorganized around content partnerships.

YouTube installed Dean Gilbert as YouTube's Global Head of Content, and more quietly tucked in the company's bold Google TV effort to marry Web and channel surfing.

Gilbert, who previously worked on Google TV, is charged with turning YouTube into a more serious broadcast medium for television via YouTube Leanback, the Google TV application that lets users watch video after video without interruption.

Overseeing Gilbert and YouTube is Salar Kamangar, who will take the CEO role at the unit.

"The reorganization YouTube did over a month ago focused on streamlining our operations so we could make faster decisions and align team goals with the company's overall business objectives," Google told eWEEK.

"Just like any rapidly growing organization, it is important for YouTube to evolve and grow to ensure further success in the future."

Co-founder Kim left YouTube shortly after selling it to Google. Chen left YouTube in 2008 to work on other Google projects. Hurley stayed as his company weathered a $1 billion lawsuit from Viacom, which accused YouTube of airing copyrighted videos.

A federal judge  found that Google and YouTube removed copyrighted content in accordance with the law. Viacom has appealed the ruling.

 



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US space shuttle programme faces its final countdown - The Guardian

space shuttle Discovery The space shuttle Discovery approaches the International Space Station in October 2007. Photograph: NASA/AP

On the morning of 12 April 1981, astronauts Robert Crippen and John Young took the lift to the top of the launch tower at complex 39A at Cape Canaveral in Florida and strapped themselves into their seats on the space shuttle Columbia. The pair were about to fly the world's first reusable rocket launcher, a 100-tonne chunk of revolutionary space technology. This was the first time Nasa had put men on an untested launcher and the nerves of its staff were by now severely strained.

For hours, engineers had been pumping hundreds of thousands of gallons of liquid hydrogen and oxygen into Columbia's fuel tanks. When combined, the two elements would generate more than a million pounds of thrust. A further kick would then be provided by two huge solid fuel boosters containing a highly explosive mixture of aluminium powder and perchlorate oxidiser.

The countdown reached its final moments, the point at which, according to former Nasa chief Daniel Goldin, "your breathing slows, your heartbeat becomes noticeable and an uncomfortable muscle tension fills your body". And he was just an observer.

Slowly, the minutes ticked away until, eight seconds before lift-off, the shuttle's turbo pumps – each powerful enough to empty a swimming pool in 20 seconds – started to force hydrogen and oxygen into the spacecraft's three main engines, where the two elements combined with unbridled ferocity. In seconds, temperatures in the engines soared to 6,000C.

Super-heated steam – generated by the explosive marriage of hydrogen and oxygen – erupted from the base of the spaceship; the computer ignited the two solid boosters; the giant bolts which had been holding the straining shuttle to the ground were blown open; and, at just after midday, Columbia rose gracefully into the air on a pillar of white vapour. Twenty years to the day that Yuri Gagarin had become the first human in space after orbiting Earth in a Vostok capsule, America had launched the first reusable spaceship.

For the next two days, Columbia circled the Earth. It was a bit like camping, as Robert Crippen later recalled. "We ended up sleeping in our seats and you had to pay attention to housekeeping, not to get things too dirty." Then, after 37 orbits, the mission's pilot trimmed Columbia's velocity, causing the spaceship to dip into Earth's atmosphere and on to a perfect, unpowered landing at Edwards Air Force base in California.

Columbia's flight was greeted with adulation. Its revolutionary engines had worked perfectly despite the colossal, violent heat of the combustion of its hydrogen and oxygen fuels, while its thermal insulation tiles had survived the searing temperatures of re-entry. The day of the expendable launcher was over. Space travel would soon be commonplace.

At least that is what Nasa said would happen. In reality, what occurred was a desperate disappointment. Flights of the shuttle – despite its brilliant engineering – never became commonplace. Columbia and its sister craft were supposed to make 50 flights a year, according to Nasa launch manifests. But only 132 shuttle missions were flown between 1981 and 2010, an average of 4.5 a year, a grimly inadequate figure for a craft that "will revolutionise transportation into near space by routinising it", as President Nixon announced in 1972.

Worse, two of the five shuttles that were built – Challenger and Columbia – were destroyed in accidents that killed 14 astronauts. In the wake of these tragedies, Nasa engineers became more and more safety-conscious and launch costs soared from Nasa's estimate of $7m a mission to almost $1bn. Thus the shuttle has become the costliest, most dangerous transport system ever built.

Now it is to be scrapped. At Cape Canaveral, engineers are now preparing to launch the shuttle Discovery, currently scheduled to blast off tomorrow on its final mission – to the International Space Station. There will be two more flights – Endeavour in February and Atlantis in June. Then the shuttle fleet will be grounded.

But how could this fall from grace have occurred? What turned the craft that soared so gracefully over Florida in April 1981 into a redundant, dangerous orbiting dinosaur? These are key questions, for until they are answered America (and the rest of the west which has relied so much on the ability to put men into space) will find itself floundering to find a role in space or a reason for being there. The US has got lost in space and the failure of the shuttle carries much of the blame. "The shuttle made America dependent on a fragile, expensive, risky launch system," says space policy expert professor John Logsdon of George Washington University. "It created the delusion of easy access to space. Now we are paying the price."

At the end of the 60s, the US triumphed over its Soviet space rivals because it spent vast sums on developing its huge Saturn V launcher which could hurl a manned craft to the moon with ease. After Apollo 11, Nasa asked that the Saturn V be allowed to ferry large modules into orbit, where a space station could be constructed by 1975. From there a Mars mission could be launched in the 1980s.

"President Nixon and his staff just looked at the plan and said, 'Are you kidding?'" says Logsdon, a white-haired, imposing but genial figure. "They were not interested in such a programme because they calculated it would do them no good in their term of office. They wanted a faster fix."

Instead, says Logsdon, Nixon and his aides simply took a map of the United States and looked at key states they needed to win to ensure victory in the 1972 presidential election. The decision came to set up a major aerospace programme involving these states. Construction of a reusable space shuttle, an idea that Nasa had also being toying with, fitted the bill. The agency was ordered to prepare detailed plans – on a very tight budget. The days of high spending on space were over and the Saturn V, which had put Americans on the moon, was dumped.

Stuck with limited resources, Nasa was in trouble, Logsdon says, and had to give up its original idea of launching the shuttle, piggyback-style, on a specially designed, manned jet plane. Both launcher and shuttle would have been reusable. Instead, to save cash the shuttle would be strapped to huge tanks that would provide fuel for its engines and to boosters that would provide extra thrust but which would be dumped during launch. The shuttle was not therefore a fully reusable spacecraft.

In addition, the agency wanted to use boosters that would burn liquid fuel, a relatively stable configuration, but in the end had to choose solid fuel boosters: an untested, less stable, but cheaper option. For similar reasons, a crew escape system was scrapped.

Then there was the involvement of the military. To find funds for the shuttle's development, Nasa asked defence chiefs to join in the project and use the spaceship to put all their military and surveillance satellites in orbit. The Pentagon agreed but insisted that the shuttle be capable of flying giant payloads on flights over the poles so that it could launch spy satellites to any part of the globe. This requirement meant the shuttle would have to re-enter the atmosphere on courses that needed far more robust, far heavier thermal insulation. Starved of cash by Nixon's White House, the agency was forced to agree.

"The shuttle was designed by a series of compromises to satisfy too many demands and too many requirements from too many different bodies," says Logsdon. "The result was a vehicle that could no longer achieve the basic goals that had been set for it."

Nevertheless, for the first four years of its operations, the shuttle – for all its flaws – operated well. It launched a total of 24 satellites, retrieved two broken communication satellites and repaired another in orbit. In addition, it not only flew US astronauts, it carried citizens of Germany, Mexico, Canada, Saudi Arabia and Holland into space.

But pressure was mounting on engineers who were finding it increasingly difficult to maintain the tight launch schedules imposed by Nasa as it tried to keep shuttle operations cost-effective.

On 28 January 1986, the spacecraft's deficiencies were exposed with deadly consequences. A seal in a booster of the shuttle Challenger failed at lift-off. Pressurised hot gas sprayed over the craft's fuel tank and the spaceship exploded 73 seconds into its flight. Binding together fuel tanks and boosters had had grim consequences.

The US – an intensely self-conscious nation – reacted with horror and grief. I covered the tragedy for the Observer and discovered Florida reeling in its wake. On the main road from the Cape to Miami, all the neon-lit signs on the strip had been changed from offers of cheap meals and lodging to messages: "May God protect the shuttle crew"; "We pray for the Challenger astronauts". The normally busy bars of Cocoa Beach, near the Cape, were empty. Locals spent the days following the explosion on the beach, hunting in the sand for any scrap of debris to hand over, desperate to feel that they were, in some way, helping

At the time, Nasa insisted the crew had been killed instantly. But the debris revealed a different story: several astronauts had survived Challenger's initial break-up but, without an escape system, had perished when their crew compartment crashed into the ocean. It was also discovered that Nasa managers had disregarded warnings from engineers about the dangers of launching after the Cape had experienced near freezing temperatures the night before lift off. The cold caused the breaking of the booster seal and doomed the flight.

After Challenger, the launch of commercial satellites from the shuttle was halted; a number of major changes were made to Nasa operations; and a replacement craft, Endeavour, was ordered. For its part, the Pentagon simply abandoned the shuttle; it closed down its special $3bn launch facility in California – without a single craft having lifted off from it – to leave the spaceship lumbered with the cumbersome thermal tiles that defence chiefs had insisted must be fitted. "It's tragic. It made the shuttle far heavier than necessary – but then there are so many tragic stories when it comes to the shuttle," says Logsdon. In the end, it is estimated that the accident cost the US a total of $12bn.

In September 1988, shuttle launches resumed with the lift-off of Atlantis. Again, Nasa insisted it was dealing with a fully operational, properly tested vehicle – and not an experimental craft, as it really was – and so set up a stiff schedule of flights that later included plans to ferry components to the International Space Station (construction of which began in 1998).

And again the agency ignored the warnings. In 1989, the US Office of Technology Assessment calculated there was a 50-50 chance of losing another shuttle "within 34 flights", while the Augustine committee, charged with investigating the future of the US space programme, warned Nasa was "likely to lose another space shuttle in the next several years".

The agency took no action. This was a problem, says Scott Pace, head of the Space Policy Institute in Washington, that could be traced to a simple flaw. "Nasa was trying to do too much with too little for too long a period because there was not a fundamental policy and political rationale for what it was doing." In other words it was pottering about in low Earth orbit with little purpose.

On 1 February 2003, the inevitable happened: Columbia disintegrated over Texas after it had re-entered the atmosphere and was preparing to land at the Kennedy Space Centre at Cape Canaveral. This time the cause was traced to a briefcase-sized piece of foam insulation that had fallen from the shuttle's external tank during launch. The debris had struck Columbia's left wing and damaged its thermal protection. As the craft swept into the atmosphere, hot gases generated by its passage through the atmosphere poured into the ship and eventually broke it apart.

"After the Columbia accident, a lot of us had a reality check," says Pace, talking in his Washington office. "Yes, the shuttle was a magnificent vehicle but surely it was done for now, we thought. The American part of the space station had already been built by then but not the European or Japanese components. So we asked our international partners if they still wanted to proceed.

"To our surprise, they said yes, we should see it through if we could. It was worth the risk. If they hadn't, that would have been the end of the shuttle there and then."

So far, those last two dozen missions, which have left the space station nearly completed, have gone well, with only three more to go. What follows is more difficult to assess.

After the shuttle's final flight in June 2011, the US will have to rely on Russian spacecraft to ferry astronauts to the space station, an ignominious position for the winner of the space race. At the same time, America's plans for a replacement launcher are shrouded in uncertainty. President Obama cancelled the Constellation programme that would have returned America to the use of expendable launch vehicles. Instead, private launch companies, with US government support, will fly missions to the space station, the president said. At the same time, Nasa will pursue a new, undefined heavy launch system.

It is all very vague and unsatisfactory. Yet many senior space officials refuse to put the whole blame for this confusion on the shuttle. "It was not an unqualified success but equally it was not a complete disaster," says Roger Launius, Nasa's chief historian. "The real tragedy is that we stuck with the shuttle for 30 years."

This is key. The shuttle was a test craft that demonstrated most but not all of the technology needed to create fully reusable spacecraft. However, under White House pressure, Nasa treated it as a fully operational craft.

"The shuttle should have been given an honourable retirement, which it certainly deserves, in the 1990s, and from the lessons learned a second-generation, fully reusable launcher would have been constructed," says Launius. Professor Logsdon agrees: "The shuttle was a first generation experiment in reusability and affordability. Not replacing it in the late 80s or early 90s was a failure of national leadership."

Viewed from this perspective, Discovery's lift-off tomorrow should be seen not as a triumph of high technology, but as the launch of an old space bus that long ago served its purpose and which should have been replaced by a craft that properly befits a nation with true aspirations in space. "The trouble is that America doesn't know why it is in space any more," adds Pace. "That is the real problem."

One thing is certain. Nerves at Kennedy Space Centre will be as taut as they were for that first shuttle launch day in 1981. "Most senior people at Nasa will be very happy to get this mission and the next two flown safely and then send the vehicles gracefully into museums," says Logsdon.

Exactly which museum will get a shuttle has yet to be decided, though each will make a perfect monument: to engineering ingenuity – and botched political decision-making.


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Local Jewish group in spotlight after terror plot from Yemen - Chicago Tribune

About two dozen members of the Congregation Or Chadash were enjoying their usual Friday evening dinner before services at their Edgewater neighborhood headquarters when they got the startling news that they were apparently the target of an international terrorist plot.

The small congregation for gay, lesbian, transgender and bisexual Jews that started with an alternative newspaper ad in 1976 had gotten used to a life of relative obscurity — too small with about 100 members to afford its own building or build much of a profile.

How a terrorist in Yemen who'd rigged printer cartridges with explosives would know who and where they are sparked as much puzzlement as fear, congregants said Saturday.

"I thought 'Wow, I didn't know we had such visibility,'" congregation member Marvin Levin said.

Pausing, he added: "I don't know that we want such visibility."

But that's what the tight-knit group got as federal officials announced Saturday that a woman in Yemen had been arrested in the alleged terrorist plot that sent several packages to the U.S. loaded with the industrial explosive, PETN.

Authorities have not said which two Chicago addresses the packages were mailed to, but a source told the Tribune both were Jewish congregations on the North Side, home to a thriving Jewish community. Chicago police Saturday said they were making increased checks in areas with a high number of synagogues, including Edgewater, Rogers Park and West Rogers Park.

Or Chadash has for seven years shared space on North Sheridan Road with another Jewish congregation, the Emanuel Congregation. The squat brick building yards from Lake Michigan also is home to a day school for about 140 children between kindergarten and seventh grade.

Or Chadash leaders said they learned that their group was an intended recipient of one of the Yemen packages from Emanuel's Rabbi Michael Zedek.

"It was just a surprise," said Rabbi Larry Edwards of Or Chadash. "When I was first hearing news (about the packages), I assumed there were probably bigger targets. We're a small congregation. Either we were selected at random or it's because we're a mostly gay congregation."

Or Chadash, which is officially aligned with the Union of Reform Judaism, began after somebody placed an ad in a local paper in 1976, seeking to meet with like-minded gay and lesbian Jews, Levin said.

"At that time, it was probably one of the few places gay and lesbian Jews could openly worship in the area," he said. "Today, there are many more options, and some people like to be part of a congregation that's more mainstream, while others like to worship with people like themselves."

Over the years, the group has expanded to include Jews from more traditional backgrounds, said Bill Wahler, the group's co-president. With Edwards working part time, volunteers frequently conduct services to lend a diversity of perspectives to how they practice their faith, he said.

Until now, Or Chadash had never received threats of violence, Edwards said.

While Or Chadash members vowed Saturday against letting the threat affect their how they operate, members of the Emanuel Congregation reacted with a mix of weary humor and sadness over the idea that harm might have come to students at the day school.

"There is nothing shocking in (the threat)," Zedek said during a service Saturday punctuated by the whir of a high-speed camera shutter emerging from the cadre of media at the synagogue's rear. "We're heartbroken. But realistically, as well, one lives in this world."

"The real tragedy of this is if it caused us to hate," said Shifra Werch, an Emanuel congregant.

Considering the day's school children, Zedek spoke of his own grandchildren during the service.

"It does pain me, the kind of world that we're leaving for them," he said.

Tribune reporters Caroline Kyungae Smith and Jeremy Gorner contributed.

jebyrne@tribune.com

dlhinkel@tribune.com


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Microsoft Beats Street, Knocks Down Apple Worry - ABC News

SEATTLE (Reuters) - Microsoft Corp beat Wall Street's expectations with a 51 percent jump in quarterly profit, as higher sales of its flagship Windows and Office software knocked down fears Apple Inc's iPad would take a bite out of its main business.

Its shares, down 14 percent this year, rose 3 percent in after-hours trading. Despite doubling sales and profit in the last eight years, Microsoft's stock has largely languished at the same level, as investors worry about its ability to counter new rivals such as Google Inc or adapt to new ways of computing.

The quarterly profit growth was helped by the launch of the latest blockbuster Halo video game, but exaggerated by the deferral of some Windows revenue in the year-ago quarter and flattered by comparison to last year, when the economy was only just emerging from the downturn.

Microsoft's Windows 7 has sold a record-breaking 240 million copies since its launch a year ago and its Office suite of applications, which debuted this spring, is off to a strong start.

"The reports of the death of Windows and Office are premature -- the company is still a cash flow machine," said Colin Gillis, an analyst at BGC Financial. "People are buying about $10 billion worth of Windows and Office this quarter. The twin engines of Microsoft are still firing."

Between them, the Windows and Office units accounted for more than 60 percent of sales and more than 80 percent of profit, factoring out nonoperating losses.

Wall Street generally expects Windows and Office sales to track sales of PCs, suggesting growth of about 7 percent in the current quarter.

ONLINE LOSSES

Microsoft's online services division, which contains the Bing search engine and MSN portal, was the weakest point in the company's quarter, with its loss widening 17 percent to $560 million. The unit, which is investing heavily in an attempt to catch up with search advertising leader Google and now powers Yahoo Inc Web searches, has lost $6 billion in the last five years.


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