Microsoft Gets Flak for Zotob

By Priya Ganapati
A poll finds more than one-third of businesses blame the software giant for the worm that crashed computer networks

With frustrations mounting as the Zotob worm continues to crash computer networks, a poll Thursday found more than one-third of businesses blame Microsoft for the outbreak, and not the creators of the worm that exploits a vulnerability in the software giant’s Windows operating system.

In a web poll of more than 1000 users, 35 percent of the respondents held Microsoft responsible for the mess as Windows had a software flaw that allowed the worm to sneak in, Sophos, the IT security firm that conducted the survey, said.

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Security: Zotob virus strikes Windows

The last few days have been spent in covering the Zotob worm which attacks unpatched Windows 2000 machines.

Here's my complete coverage of the worm for Red Herring online

Zotob Worm Attacks Visa
August 17, 2005
The Zotob worm brought down computers at the payment giant’s headquarters in California.

Zotob Morphs into 11 Variants
August 17, 2005
The computer worm that infected Visa computers is mutating fast, leading security experts to raise threat levels.

Zotob Variant Hits Big Media
August 16, 2005
Internet worm variant attacks computers at CNN, ABC, and the New York Times .

Zotob Virus Strikes Windows
August 15, 2005
The Internet worm is aimed at soft spots in Microsoft Windows.

Internet: Bike Powers PCs in Africa

Former Silicon Valley execs bring cheap computing to remote African villages.
By Priya Ganapati
August 11, 2005

With help from former Silicon Valley execs, villagers in remote hamlets in Africa lacking power and phone lines are now making calls over VoIP, receiving voicemail, and sending email. The only hitch? Users must pedal on a stationary bike hooked up to a generator to get computer time.

Getting these hard-to-reach spots connected 21st century-style is the work of Inveneo, a San Francisco-based nonprofit started by a team of ex-tech industry workers. The outfit was started last year by Robert Marsh, a former entrepreneur and manager with more than 25 years of tech experience under his belt at companies including Innovwave and Document Tech.

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Vector to Buy Register.com

By Priya Ganapati
The private-equity firm said it is buying one of the oldest domain registration service providers for $200 million.
Aug 9, 2005

Vector Capital said Tuesday it will buy Register.com, a domain registration service provider, for $200 million in cash, marking the private-equity firm’s third acquisition of a struggling company in two months. San Francisco-based Vector Capital will pay $7.81 in cash for each Register share, a 21 percent premium over the closing price of $6.41 on June 8. That was the last trading day before another bidder, RCM Acquisition, made a hostile takeover attempt. That bid was thwarted.

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Network Solutions’ Small Idea

By Priya Ganapati
The domain registration services provider will revamp its product portfolio for small businesses.
Aug 9, 2005

Network Solutions, one of the leading domain registration service providers, said Tuesday it will reposition its brand and web site to focus on small businesses, the fastest-growing segment on the Internet. It has created a starter package for small businesses and is sprucing up its customer support to offer 24/7 service. Over the next 12 months, 2.5 million small businesses are likely to go online. Small business spending on web hosting is growing by 9.5 percent annually and will top $7.4 billion by 2009, said IDC

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Microsoft Gets Blogging

By Priya Ganapati
The software giant’s MSN launches a community blogging service covering fashion, technology, television, music, and sports.
August 8, 2005

Seeking to raise its profile in the increasingly influential world of bloggers, software giant Microsoft said Monday it has launched a preview version of its new community blogging service called MSN Filter that will focus on topics like music and fashion in addition to technology.

MSN Filter (filter.msn.com) currently features blog posts written by six staff bloggers on various subjects that also include television and sports. The service is also looking to eventually become a community-driven site where readers can post in many categories, Microsoft said. But it won’t be a free-for-all. Microsoft staff bloggers will review the comments before they go live.

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Most CRM Buyers Unhappy

By Priya Ganapati
Buyers are dissatisfied as most products and services do not fully meet their needs
August 5, 2005

Companies that spend millions of dollars on customer relationship management products and services are a largely dissatisfied bunch as most of their purchases fail to fulfill their desire for easier integration and better vendor support, according to a Forrester Research report.

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Doubt Over Microsoft Dividend

By Priya Ganapati
Wall Street pressure aside, most tech companies remain wary of paying dividends
August 5, 2005

Some investors may be hoping that Microsoft and other cash-heavy tech companies will share their profits through additional dividends, but analysts say most companies will direct their money to long-term growth, rather than short-term payouts.

“Investors invest in technology companies for growth and not profitability,” said Samuel Saunders, an analyst for Fulcrum Global Partners. “So companies like Google that have a strong growth potential in the future find much higher valuations than those which have matured.”

In fact, Google shares climbed from $95.96 last August to $317.80 on July 21. With that kind of appreciation, who needs dividends?

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IT Spending Growth to Slow

By Priya Ganapati
A research firm has lowered its forecast for IT spending growth as optimism hits 2005 low point.
August 1, 2005

Information technology spending is expected to grow by just 4.8 percent over the next 12 months, according to a lowered forecast by research firm IDC Monday, as optimism about future demand for IT services has hit a low point for the year. IDC’s forecast earlier this year had put growth at 5 percent, which would have pegged growth at the same rate as 2004.

But August marked the fifth consecutive month of flat or falling buyer intent as CIOs realize that IT budgets for the year are tighter than they had originally estimated. Earlier this year, IT buyers had expected IT budgets to rise as much as 10 percent to 15 percent over the next 12 months.

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