TECHNOLOGY TOOLS of theTRADE

tripod connector. The color LCD ing the first Asus models. The ry, 160GB hard disk, 10.1" screen is 2.5 inches, and the latest improvement that has screen, Webcam and micro- USB connector for your comput- helped push these little laptops phone, three USB ports, micro- er swings out of the camera to the forefront is the availabili- phone and headphone inputs, body—no need to look for ty of a 9.5-hour battery. One of RGB video port, and Windows cables. There’s an optional the late entries has proved to be XP. www.toshiba.com Kodak Video remote control that one of the best. The Toshiba NB lets you record from a distance 205 has incorporated a number Sony PRS 300 or control replay on your video of the evolving improvements, Pocket Reader outlet. The recorder weighs about and it sits atop many of the A Wall Street analyst recently Kodak Zi8 four ounces. www.kodak.com reviewers’ “best” lists for a predicted three million Kindle Pocket Video number of reasons. To begin users by the end of 2010. And Released this month, the Kodak Toshiba NB 205 with, the design sets the Toshi- now Sony is accelerating to Zi8 pocket video camera shoots Netbook ba apart with a lot of attention catch up. There were three and shares high-quality 1080p September is one of the two paid to details. The keyboard is major announcements from HD video. The videos are easily best months of the year for close to full-size, and the touch- Sony last month, including a uploaded to Facebook and computer sales, and it looks like pad, at 3.1" ✕ 1.6", is one of new PRS 300 Pocket Reader, a YouTube with the push of a sin- this month will be dominated by the largest available for a 10- PRS 600 Reader Touch Edition, gle button, and the very handy the netbook variety of laptops. inch netpad. Battery life exceeds and a reduction in price for new format (2.4" ✕ 4.5") features These smaller versions of the nine hours, and the overall size releases and New York Times built-in electronic image stabi- traditional laptop almost univer- (10.4" ✕ 7.6" ✕ 1.3") weighs best-sellers to $9.99 at the Sony lization to reduce blurring. You sally feature a 10.1-inch screen, in at 2.8 pounds. The rest of the Reader bookstore. With Kindles can also take HD (5MP) stills, the Intel Atom™ 1.6GHz stats are the same as a number still in the $299 to $489 range, and the Zi8 will record up to 10 processor, one or two GB of of other netbooks: Intel Atom Sony is closer to the price hours of HD video with the RAM memory, and a hard drive 1.66GHz processor, 1GB memo- breakpoint that many think, expandable SD/SDHC card slot (or flash drive in some cases) when found, will break the that can hold up to 32GB—the with a capacity of anywhere dam and open up wide- onboard memory is 128MB. from 8GB to 160GB. The spread distribution for a Focus and exposure settings are operating system is Windows technology that has had only automatic. There are two focus XP on most and Linux on moderate success. The PRS modes, normal and macro. The some. The number of new 300 Pocket Reader will sell normal has a range of 100 cm versions of this basic design for $199 and will have a (40 in.) to infinity, and the and architecture has been five-inch E Ink screen that is macro is down to 15 cm (6 in.). amazing. Every major pro- one inch less than the stan- Microphone and speaker are ducer, except Apple, has dard Sony Readers’ five- built in, and there’s a standard been chasing and improv- inch electronic paper dis-

58 STRATEGIC FINANCE I September 2009

TECH FORUM

The Redmond Bellwether By Michael Castelluccio, Editor

PLOTTING THE REALLY LARGE MOVEMENTS IN computer history has been complicated by the fact that BodyGuardz computing isn’t one technology but rather a complex of When you pay $300 for a sleek, many related technologies. The processor-memory- elegantly designed iPhone, you software triad has permeated theoretical mathematics, might not want to cover its commerce, communication, entertainment, and many chrome and black glass with a other fields, with the chip finding its way into surgical play. The more pocketable ver- ribbed, rubberized cover that implants, movies, and weather tracking. Consequently, sion of the Readers will be able guarantees multiple-bounce pro- the number of false starts and dead-ending diversions has to store up to 350 standard tection. You’re willing to risk a driven more than a few investors to distraction. eBooks, and a charge on the drop or two to be able to hold In order to guess where any sector of computing battery will last for about two in your hand what you paid for. might be going, you need a reliable bellwether. A dictio- weeks of reading—the charge BodyGuardz has a scratch-proof nary definition of a bellwether is “any entity in a given is only drawn down when you protective covering that provides arena that serves to create or influence trends or to turn pages. The Pocket reader full body and screen coverings in presage future happenings.” It’s derived from the practice will be available in navy blue, a durable, crystal-clear, custom of placing a bell around the neck of a ram leading its silver, or rose. The Touch Edition fit covering. There are covers for flock of sheep. The movements of the flock could be per- will sell for $299. It will have a almost every make of phone, ceived by hearing the bell before the flock was in sight. six-inch touchscreen panel en- PDA, and media player—even The way then to stand above and look beyond the com- abling quick, intuitive navigation, gaming devices and laptops. The plexity with which we are surrounded is to listen for the page turning, and highlighting as covers have a lifetime guarantee sound of the bell as it moves away from us. well as note taking with your fin- and need no special care. The might just be the bellwether we need ger or with the included stylus. greatest protection that the for plotting the future direction of business software. Seen You can look up words on the BodyGuardz provides is against more as a cash cow for Microsoft, Office is a mature prod- built-in Oxford American English scratches and abrasions. One uct that owns most of the market, and it is its own trend Dictionary by tapping on the reviewer put a BodyGuardz-clad due to the mass of its widespread implementation. That word. There are five font sizes, iPhone in a bag with keys, then doesn’t mean that it’s unaffected by larger movements in and the reader supports SD rough sandpaper, and finally computers, networks, and other software—it just means memory cards and Memory Stick nails and shook the contents, the changes might be slower because of its size. PRO Duo cards. The Touch edi- trying to scratch the device. tion will come in red, black, or The device was unmarked. CURRENT STATE silver. www.sonystyle.com www.bodyguardz.com Like many other software lines, Office has suffered recent losses because of the weakened economy. Microsoft’s profits from the Windows OS have fallen in the last three quarters, and Office fell in the last two. The company’s CFO Chris Liddell says the losses for Office were respon- continued on next page

September 2009 I STRATEGIC FINANCE 59

TECHNOLOGY TECH FORUM

sible for an 8% drop over the year in the Microsoft Business , presentation software, and a note-taking pro- Division. He told IT World, “I didn’t see any trends at the gram. Microsoft will also host one Internet business version end of the quarter that would encourage me to think that of Office at its own data centers, charging companies a yet- we have hit the bottom. We expect broadly the same trends to-be-announced fee. Companies with premium service in [fiscal] Q4 as we had this Q3.” Contributing to the contracts will have the choice of running a second Web- decline for both Office and Windows has been the decrease based version from their own data centers at no extra cost.” in sales of PCs to businesses. The free version will have advertising and will support the Many think that Office and the Windows line of OSs will and Safari browsers as well as Internet Explorer. improve as the economy recovers, but there are several other With the Office division as its most profitable property, threats to the Office suite of products. There’s the growing the move is definitely risky. Some think it’s a desperate number of free Web-based word processing, spreadsheet, attempt to keep people on Word, Excel, and PowerPoint, presentation, and e-mail offerings. And there’s also the even if you have to give it away to some. But how big will growing tendency by consumers to turn to their smart- that group of “some” become? One analyst, Sandeep phones to do the kinds of things that once you only could Aggarawl of Collins Stewart, estimated that Microsoft has do on a PC. The distant sound of these two bells might be consumer customers who provide $4 billion annually, and converging as companies in the Cloud (the Internet) offer these are the most likely to become early adopters of the free free and low-price large storage capacities, reachable Office Suite. Other experts think that it could be a path to through the browser on your smartphone or your computer, cannibalization of its own best product. And then there are which might already be hooked up to a free office suite in those who think it’s a stroke of genius and that the results some other part of the Cloud. will resemble what happened to Netscape Navigator when The competition from free offerings goes back a number Microsoft undercut its rival with a free Explorer browser. of years. OpenOffice.org, a mature, cross-platform suite, Well, you can start keeping score early next year with the includes Writer (word processing), Calc (), release of all three Office 2010s—the free version, the online Impress (presentations like PowerPoint or Apple Keynote), leased to business version, and the standard business sales. It Base (), Draw (vector graphics like Visio), and Math shouldn’t escape notice, though, that applications, even the (an equation editor). It runs on Linux, Macs, Solaris, BSD, classics, are moving online with new business models. and Windows, and it costs $0.00. OpenOffice goes back to That’s one bell drifting off the path, but there’s another. 1999 when Sun Microsystems bought it in its StarOffice stage. On August 12, Microsoft and Nokia made a joint public More recently, has amped up its Google Docs announcement. Both have been hearing some ominous offerings, and now there are free and $50/year advanced ringing. As the phone replaces the PC in key areas, both versions of its productivity suite. Then there are others like giants can see their grip loosening. Zoho Office Suite, with a wide variety of applications Nokia is the largest cell phone maker in the world, but its (www.zoho.com), and ThinkFree, which offers low-cost numbers are quietly weakening. The most serious competi- “office space” for PCs and mobile devices (www.thinkfree. tion for Nokia comes from Research in Motion. Apple’s com). The free arena has attracted both small developers iPhone share is also rapidly growing, while the Finnish and the giants. A recent, beautifully designed free word pro- corporation loses a few percentage points each year. For cessing application called Buzzword is from Adobe. It offers Microsoft, its Windows Mobile operating system isn’t going online storage as well as PDF functions and collaboration anywhere with 9% of the market compared to Nokia’s features (www.adobe.com/acom). Symbian at 51%. With Google’s release of the Chrome browser and the The solution for both is proposed in a joint venture to threat to use the browser as the operating system/avenue to put Office on phones made by Nokia. The operating system a growing library of online applications, the question will be Nokia’s (Symbian), but the application will be becomes: What can Microsoft do to defend itself? Microsoft’s MOM (Microsoft Office Mobile). The first deliv- Well, follow the bell is one option. erable, a version of the Communicator instant messaging On Monday, July 13, 2009, Reuters reported, “Microsoft program, won’t arrive until next year. will offer for free to consumers Web-based versions of its Now the conjecture for the armchair observers can center Office suite of programs, including a , around who is the bellwether and who are the sheep. SF

60 STRATEGIC FINANCE I September 2009