Icahn Helps Microsoft Buy Yahoo

Carl Icahn loves to make mischief. He buys just enough stock to have leverage, then forces large companies to do his bidding, pocketing billions in the process.

Now, sitting on 3.6 percent of Yahoo's shares, Icahn is reportedly looking to ditch the board of directors for a group that's more amenable to a Microsoft bid. Icahn likely bought at least a portion of Yahoo stock after it fell in the wake of the failed Microsoft takeover. A new bid would, by definition, be a premium over the current price -- and Icahn keeps the difference.

Here's the rub: Microsoft just publicly said it's no longer interested in Yahoo and plans to attack the Internet alone. Can Microsoft change its tune just because Icahn forms a friendly board? If that were to happen, then all those words about independence from Gates and Ballmer have no meaning. That doesn't sound like the Bill and Steve that I know.

Posted by Doug Barney on 05/14/2008 at 1:15 PM0 comments


HP: The New Services Powerhouse?

HP is aiming to scoop up EDS for a cool $14 billion or so. HP is already cleaning up in servers, and has a sweet PC and laptop business. And no one can touch it in printers. But today's complex market requires services -- lots of services.

IBM's service business is the biggest and most influential by far. It can help companies take a top-to-bottom look at its infrastructure and redo the datacenter with a more flexible and power-saving architecture. HP can do the exact same thing, but lacks the sheer muscle of the IBM group.

EDS could change all that in a heartbeat. My only concern is in blending the cultures which, given Ross Perot's legacy -- he may have sold EDS to GM in 1984, but his influence lingers on -- are very different.

Posted by Doug Barney on 05/14/2008 at 1:15 PM0 comments


Microsoft Not the Only Technology with Holes

Critics love to beat up on Microsoft for its security. But in its defense, Redmond is clearly the biggest and most fun hacker target. It also has a ton of products. So it makes sense that holes will be found and attacks mounted.

Microsoft, at least once a month, discloses (and closes) these holes in a very public way. Meanwhile, the Web has no Patch Tuesday, and consequently its holes can stay open for a long, long time.

In fact, according to security concern Cenzic, some 70 percent of the Web apps it looked at lacked secure communications. Two-thirds of these apps were deemed "easily exploitable." In many cases, there's no system in place or real plan to improve Web security and plug holes. The two biggest vulnerabilities, Cenzic reported, are SQL injections and cross-site scripting.

Posted by Doug Barney on 05/14/2008 at 1:15 PM0 comments


Dell Into Virtualization for Real

I just wrapped up a 2,500-word feature story about Dell's virtualization strategy for our new magazine Virtualization Review. I also spent weeks deciphering Sun, IBM and HP plans. These last three vendors have multiple hardware environments, their own management tools and, in two cases, homemade hypervisors. This was all as intricate as a Dennis Miller commentary (though far more interesting and less pretentious).

Dell was far different. What Dell does is sell standard servers that run standard third-party virtualization software. The strategy took all of two seconds to comprehend -- even for me. Dell has extended this to shipping servers with the embedded version of VMware, as well as the option to buy servers with Xen pre-installed. Dell also has a new Web site where you can easily buy virtual wares.

Dell may not have the broadest range of tools, but at least you won't get a headache trying to figure it all out.

Posted by Doug Barney on 05/12/2008 at 1:15 PM0 comments


Virtual Definitions

Virtualization can be a confusing area to understand. By its very definition, virtualization is an abstract endeavor. And with the ability to virtualize everything from PCs to servers to mainframes to storage to files and I/O, no wonder so many are perplexed.

Just the client alone is filled with many ways to virtualize. You can turn a PC into multiple PCs with PC virtualization. You can isolate an app from the registry through application virtualization. You can stream apps from a server to a PC through application streaming or desktop virtualization.

Tom Valovic, a longtime IDC analyst who just joined Virtualization Review, recently dissected the world of client virtualization in a recent blog posting. Now I think I almost understand it. This guy is going to be really good!

Posted by Doug Barney on 05/12/2008 at 1:15 PM0 comments


All the MS News You Can Use

Lately, I've been harping on about our new site RedmondReport.com, a portal for news about Microsoft. I've been bragging so much I figured I'd take a look this morning and see if it's as good as I said it was -- and it is!

My favorite story is one we picked up from Wired. It turns out that one of worst high-tech companies for the environment is that touchy-feely outfit from Cupertino with Al Gore on its board.

Yup. Good, old Apple evidently makes iPhones with toxic materials, doesn't even know how much CO2 it emits and has no real plan to reduce its greenhouse gases.

Maybe the next time Steve Jobs flies across the country on the Gulfstream V Apple bought him, he can think up a plan. By the way, Jobs' plane holds some 41,300 pounds of fuel and uses about 64 pounds per nautical mile. That's even worse than my '96 Cadillac.

Posted by Doug Barney on 05/12/2008 at 1:15 PM0 comments


Patching Time Again

Tomorrow should already be on your -- or one of your minions' -- schedule, so you won't forget to patch your Windows and client PCs. Luckily, this month is pretty light with a scant four patches.

Microsoft Word tops the list with a remote execution exploit just begging to be fixed. Publisher also gets a plug (write me at [email protected] if you're one of the few that actually use this program). Lastly, the Jet Database Engine gets one of its flaws un-flawed.

How does your shop patch? Manually? A patch management tool? A combo? Any advice for would-be patchers? Write me at [email protected] and I'll pass it along.

Posted by Doug Barney on 05/12/2008 at 1:15 PM0 comments


Virtual I/O's Time Has Come

Server and PC virtualization aren't exactly old hat, but they are established markets -- and established technologies that are proven to work.

A lesser-known area that's ripe for take-off, I believe, is I/O virtualization, where connections to networks and storage lose their physical constraints and gain the flexibility of virtual connectivity. Setting up a new server, for instance, doesn't have to involve the manual installation and configuration of NICs, HBAs and all the rest.

One company I came across in this space is Xsigo Systems. Unlike earlier forms of I/O virtualization where a regular I/O device is shared by multiple apps, systems or VMs, Xsigo does away with the adapters all together. In their place is a new device that acts like the physical devices, but can be dynamically assigned and allocated. Pretty slick.

Tom Valovic, executive editor of Virtualization Review (that's our new magazine/Web site which can be found at VirtualizationReview.com), found another player, 3 Leaf Systems, that also virtualizes I/O. From what I can tell, the 3 Leaf V-8000 Virtual I/O Server is very similar in concept.

How much have you virtualized? Servers, desktops, apps, storage? Tell me your story by writing [email protected].

Posted by Doug Barney on 05/05/2008 at 1:15 PM0 comments


Microsoft to Yahoo: You're On Your Own

Late last week, Microsoft made it clear that Yahoo wasn't worth the money it would take to buy it. This was after Microsoft raised its offer from $44 billion to nearly $48 billion.

I couldn't agree more. Yahoo isn't as large as you might think, and its growth isn't as impressive as, say, Google. In the last quarter, Yahoo brought in a bit less than $2 billion in revenue and only $112 million in operating income. The only way a company this size would be worth almost $50 billion is if its growth were truly staggering, which it's clearly not.

My bigger concern is that Yahoo has nothing that Microsoft hasn't already built or bought. Microsoft would be far better off using its billions to invent the future, not to buy the past. Tell me where I'm wrong at [email protected].

Posted by Doug Barney on 05/05/2008 at 1:15 PM0 comments


SaaS Rules

Software-as-a-Service isn't yet the dominant way that applications are delivered, but it's the No. 1 thing on the minds of enterprise software customers -- at least, according to a survey by venture firm Sand Hill Group and consultancy McKinsey & Company. The No. 2 trend is actually similar: Web services and SOA.

For large apps, the services model makes a lot of sense. It can take years to properly install and configure ERP, CRM, BI or a management framework -- and there's no guarantee it will work right when it's done. Pre-configured services allow corporations to try out functions bit by bit, and let the service provider do the heavy lifting.

What's your experience? Are you using SaaS? And if so, what do you love (and hate)? Let us all know with a quick e-mail to [email protected].

Posted by Doug Barney on 05/05/2008 at 1:15 PM0 comments


The Greening of Microsoft

Microsoft Research is at it again -- doing good, that is!

The group's latest noble cause is green computing, and to that end Microsoft Research is working with Harvard, Stanford and a couple of big state universities to dramatically reduce datacenter and x86 processor power consumption. The University of Tennessee, for instance, is working on reducing the power demands of virtualized datacenters. Sounds pretty slick.

Share your thoughts on the topics in today's issue! Go here Or contact Doug Barney directly at [email protected].

Posted by Doug Barney on 04/28/2008 at 1:15 PM0 comments


XP's End Is Near

If you want a new PC with XP, you best get to steppin' before the end of June. After that, machines will come only with Vista.

Now, here's the weird catch: For the next year, you can buy a Vista PC and then have XP installed in its stead -- so-called downgrading. This sounds more convoluted than a Britney Spears press conference.

Posted by Doug Barney on 04/28/2008 at 1:15 PM0 comments


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