Aug 24

One deal involves Memetrics Holdings, which develops technology designed to analyze thousands of Web pages to select the best format and context for various customer groups. That deal closed several weeks ago.

Accenture said on Wednesday it’s snapping up two companies in a move to expand its digital marketing sciences unit.

Accenture is also acquiring the assets of Maxamine, which scans customers’ Web sites and then offers suggestions on ways to optimize the sites, as well as decrease privacy risks. The Maxamine deal is expected to close by late February.

Accenture and Oracle–separated at birth?

Terms of both deals were not disclosed.

Accenture, a technology outsourcing behemoth, is beginning to look like Oracle’s evil twin brother when it comes to acquisitions.

Aug 24

Like many “geo” services, Buzzd lets members tell their friends where they are; rival Brightkite also lets members post “notes” on those venues, but doesn’t turn them into a real-time lookup service. Buzzd has partnered with event and venue listing services like Time Out, Flavorpill, MyOpenBar, and Zagat. You can also use Facebook’s newly extended API to hook it up with your profile credentials.

So what’s next? Founder Nihal Mehta told CNET News.com that the all-important
iPhone application is on the way, as well as a “strategic investment” on behalf of a major player in the mobile market. He’s not saying who that is, but one can guess it’s likely a handset manufacturer (though probably not Nokia, because it just bought competitor Plazes) or a carrier.

The New York-based start-up is set to release numbers on Thursday announcing that 1.2 million venues are now listed in its directory, 10 percent of which were added by users. As for demographics, about 80 percent of Buzzd’s users (it doesn’t provide specifics on active users) are in the U.S., concentrated around cities like New York and Los Angeles, with another 10 percent in Europe and 10 percent in India.

While it’s a mobile Web site that doesn’t require a download or subscription service, Buzzd has nevertheless worked on forming carrier deals–and says that more are on the way–to improve visibility in exchange for ad revenue sharing.

Buzzd, a mobile service focused on “real-time” reviews of bars and restaurants, says it’s making some inroads in the tough, crowded location-based networking market.

Aug 24

Savio Rodrigues asks this question over at InfoWorld with regard to Microsoft shoving it into a deal between it, Renault, and Novell, stating:

I was talking with senior counsel from a Very Large Proprietary Software Company the other day and he mentioned that four years ago, no one asked about this. Now it’s everyone’s top concern.

commentary

Vive l’Europe!

[W]hy should a customer care about IP assurance? IP indemnification is a vendor issue, just like ensuring environmental rules or workplace safety regulations are being adhered to. It’s a disgrace that vendors have made indemnification a customer concern.

It need not be. The risks are so low that I have more chance of being eaten by snow elves than I do of being sued by my vendor if I’m GE, Mom-and-Pop shop #283,038,312, or whomever. It’s a useless question, but one that US customers ask all the time. I say “US” because we almost never hear about it from European customers.

I could not agree more. Yet it is the number one legal issue I deal with, and it’s not just an open-source thing.

Aug 24

Of course, doing what Icahn wants doesn’t always mean investors are amply rewarded. In October, when Icahn was throwing knives at the management of BEA Systems (an enterprise software maker since acquired by Oracle), News.com’s Dawn Kawamoto took a hard look at Icahn’s impact on companies in which he gains board seats and the companies that turn him away. The results, according to her analysis, were quite mixed.

Suuure. And former Motorola CEO Ed Zander stepped down last year to spend more time with his family.

We contacted Icahn’s office in New York City and we’ll let you know if or when he does, in fact, have something to say about today’s news. But should he like this? Motorola shares were only up about 2.5 percent in midday trading, so it’s not like this news is stirring hearts on Wall Street. In fairness, it hasn’t been a great day for the financial markets, but you would expect a little more enthusiasm than what we’re seeing so far.

This year, Icahn is trying to get a four-person slate onto Motorola’s board. Motorola CEO Greg Brown said in a conference call Wednesday that the company offered Icahn two seats, but he turned down the offer. Brown also said (I wasn’t in the room, so I can’t say if it was with a straight face or not) that pressure from Icahn didn’t have an impact on the decision to split the company in two.

Wednesday morning, ailing Motorola announced that it will split into two companies next year. The news doesn’t come as a shock to the many who believed something dramatic had to be done to fix Motorola’s troubled handset business. And it probably doesn’t surprise Icahn, who has been hounding Motorola for nearly a year.

Here’s one outcome Icahn may like: Motorola gussies up the handset business and sells it, as News.com’s Marguerite Reardon discusses in a post aptly titled,”Is Motorola putting lipstick on a pig?” That would get Motorola out of a tough, frequently low-margin, and crowded business. It would also provide the company with the cash to focus on its lower-profile but more successful Broadband & Mobility Solutions business, which does everything from enterprise and government work to cable set-top boxes.

Icahn: Thumbs up or down on Motorola's news?

Update: Now we know what Icahn thinks. In a letter to Motorola’s board of directors released after trading ended Wednesday, Icahn called the Motorola split long overdue, but questioned the company’s timetable. He also said he plans to continue with his proxy fight.

You have to hand it to corporate raider Carl Icahn: He sure knows how to stir it up.

The question that’s now bound to be on the mind of people who watch Wall Street like most people watch Sunday football: What does Icahn think about this?

Last year, Icahn waged a proxy campaign for a seat on the company’s board of directors and as of early March, he held a 6.4 percent stake in the Shaumburg, Ill., company. On Monday, he announced he was filing suit in Delaware court to get access to Motorola documents regarding its board of directors, financial performance, and expenses such as executive use of the corporate aircraft.

So the king of the corporate raiders doesn’t have all the answers. Unfortunately, up to now, neither has Motorola’s management.

Aug 24

“This is a very significant dynamic in the server market today that I don’t think Wall Street has caught up with,” he noted.

In sum, Dell is still trying to turn itself around. While the previous quarter’s earnings results may have been more reassuring to investors, the company is still undergoing change internally and they don’t have every wrinkle ironed out.

Despite lower-than-expected profits, Gladden called it “a great growth quarter” for Dell. The cost of growth in Europe in particular, he said was partly to blame for this quarter’s results. In other words, in an attempt to gain share in both consumer and enterprise markets, Dell spent more than it did last year.

“It’s correct that Dell has focused on enterprise and consumer will follow in their priorities. That’s the right thing for them to do,” he said.

Dell’s strength has traditionally been in the enterprise market, and it says it will continue to grow its services business to take advantage of growing demand from its current roster of customers.

Revenue was $16.43 billion for the quarter, an 11-percent increase from a year ago. That was helped by a big boost in shipments of the company’s hardware–up 19 percent worldwide.

This post was updated at 3:50 p.m. PDT with comments from Michael Dell and analysts.

“But it’s conservatism that’s been relatively consistent for the last six months,” he said. It jibes with what rival Hewlett-Packard reported during its earnings call last week, when CEO Mark Hurd said he didn’t see much of a change between last quarter and the current quarter.

Dell does not provide guidance to Wall Street for the forthcoming quarter, which makes analysts more than a bit nervous. That was quite obvious on the earnings call Thursday, when analysts repeatedly asked Gladden and CEO Michael Dell about why the company was so aggressive in trying to gain market share in Europe, and didn’t have the profits to show for it.

Its second quarter profits were down 17 percent to $616 million, from $746 million a year ago. Dell reported earnings of 31 cents per share, missing analysts’ expected 36 cents per share.

The CEO’s repeated response was that the company is seeing gains in market share as a result, but still has some fine-tuning to do in regard to pricing.

Dell on Thursday reported its second-quarter results, and the company admitted it had more work to do to improve its performance.

With shipments up in all markets, they say it’s working. Specifically, Gladden pointed out servers and notebooks. Server shipments increased 19 percent, and notebooks 44 percent. The company has increased its global retail presence from basically nothing a year ago to having its products on shelves in major electronics chains in the U.S., Europe, China, India, and more.

Dell began its dedicated cloud services business 18 months ago, and has acquired big-name customers like Salesforce.com, Facebook, Yahoo, and Microsoft. It’s an area Dell is growing quickly, but it’s also one that Stahlman believes is not well-understood by the financial analysts watching Dell.

Gladden said repeatedly that there was “more work to be done,” to improve profitability and decrease costs. To that end, Dell still isn’t done with layoffs. The company said in early 2007 it had a goal of lowering headcount by 8,900. As of now, they’ve reduced staffing by 8,500. The last 400 will be gone by the third quarter, according to Gladden.

Though Wall Street appeared fixated on costs of driving up the company’s notebook business in Europe, it’s missing the larger picture, according to Gartner analyst Mark Stahlman. Specifically, Dell’s growing cloud computing business.

But a bigger issue for the IT industry in general is the current conservative spending climate. Gladden said its business with large corporate customers and state and local governments has seen the most slowing.

New CFO Brian Gladden presided over his first earnings call for Dell.

Dell’s CFO did say not to expect improvements in profitability in the consumer business for another four quarters. And that’s fine, according to Gartner’s Stahlman.

“When you’re restarting growth, it’s an imprecise process,” Dell said. “We see some parts of our business where we were probably a bit too aggressive, (and) we’re modulating for that now.”

Regarding the company’s consumer business, it is still in the growing stages. Margins on consumer notebooks continue to decline, as do the average selling prices. But, demand for consumer notebooks are growing in many markets, including new ones like China and India. The key will be Dell’s ability to exploit that better than their rivals, HP, Lenovo, and Acer.

But Gladden did say that his company is beginning to see some of that slower spending spreading to Western Europe and Asia.

But Wall Street didn’t like what it heard: Dell’s stock was down more than 10 percent to $22.50 in after-hours trading.

Aug 24

On Tuesday the company said that it is “feasible” to produce a Blu-ray-compatible disc with 20 layers. At 25GB per layer, that amounts to a 500GB disc. The previous claim of 400GB meant just 16 layers were on a single disc.

(Via Engadget)

A month after saying it had figured out how to squeeze 400GB of data onto a single optical disc, Pioneer says it can do better than that.

The company said that it was able to squeeze more layers in by stacking alternating layers of two different thicknesses.

Blu-ray Discs are currently available in single layer (25GB) and dual-layer (50GB) discs.

The disc is still in the research phase, but Pioneer says its goal is to produce an actual product between 2010 and 2012. Of course, whether it will even be possible to make discs with that many layers compatible with a broad array of Blu-ray player models on the market now is unclear. But by its own gaols, it’s got a couple years to figure that out.

(Credit:
Pioneer)

Aug 24

New Web threats today come not necessarily from sites built to host malicious content, but also from legitimate sites that have been compromised. A new safe Web surfing product, Haute Secure, is out of beta and available for free home use with both Internet Explorer and
Firefox. Founded in 2006 by former Microsoft security engineers, Haute Secure hopes to distinguish itself in a crowded field of products, including Grisoft Linkscanner and Finjan SecureBrowsing.

Haute Secure is a free 32-bit or 64-bit download when used for home use; businesses will be charged to have their Web pages checked for malicious code. At the moment there is little technical support offered beyond a few FAQs and a users’ forum.

While we were pleased with the product’s ability to block threats on compromised Web sites, Haute Secure did, however, fail to identify a few recent non-exploit-related phishing sites, which surprised us. Using five sites recently reported to a reputable, independent phish-tracking site (most were active an hour or less), we noted that none were flagged as active by Haute Secure. Perhaps that’s because the pages themselves do not contain malicious code. Yet the pages do contain forms which, when filled out and sent in, could compromise your identity. Although Haute Secure uses phishing reports from Stopbadware.org and others, and will warn you of known fraudulent sites, we found the native anti-phishing protection in Internet Explorer and Firefox did a better job at flagging recently reported phishing sites.

Aug 24

How would something like that manifest in the game?

Wright: Well, we actually took a different direction. At the beginning of the game you see this comet hitting the planet, which is a panspermia theory, which is the alternative theory to bio-genesis, which is that life formed naturally through chemical complexity on Earth. We ended up prototyping and exploring a lot of spaces that are not in the game. We’re trying to look for the most interesting 20 percent out of the 100 percent of what we could put in the game.

Famed video-game designer Will Wright will see the results of seven years’ of work pay off when ‘Spore’ is released on September 7.

What are some steps or systems that you found weren’t doable?

Wright: Surprisingly, some I thought weren’t doable were. I’d never heard decent procedural music and I’d given up on it until Brian Eno came on the project. He’d been thinking about the problem for years. So we reincorporated it after rejecting it in the early phases.

I’ve heard Spore was originally known as SimEverything.

When I design a game, at the very beginning, I design a box, and with Spore many, many years ago, the title on the box was SimEverything. I can show the team my box and say, Look, we want to build this, imagine what will be in this box. Spore was feeling pretty unique and SimEverything almost felt like a parody of the Sims brand, which is why I liked it. But my lead artist, Ocean Quigley, actually came up with Spore as the code name for the project. But after a couple of years of calling it Spore, the name seemed to fit on so many different levels, especially as we thought deeper about the pollination and things like that. At some point we said, Let’s just call it Spore.

Earlier this month, the day before Wright set off on a worldwide, four-week publicity tour, I sat down with him at Maxis’ Emeryville, Calif., headquarters for a discussion about the evolution of his evolution game. I wanted to know about the conceptual origins of a game unlike any other, and Wright was happy to tell me all about it

Now, Spore is set to push that innovation envelope even further. And while no one yet knows if it will be a commercial or even critical success, it’s safe to say that the excitement over the game–which has been raised in part due to the fact that it has taken Wright and his Maxis studio much longer to get the game to market than originally planned–is as high as any game in recent memory.

What was that like to have to do that invention?

Wright: It was risk assessment: Can we solve enough of this problem to be confident we could solve it well? The earliest prototypes were making strange topology creatures and seeing if we could teach the computer to make them move plausibly, and later, show emotion and behavior. We had to find out whether the project was doable or not, or if some part of it wasn’t doable, where we have to scale it back.

Q: What were the origins of Spore?

Will Wright: The earliest evolution of it had to do with the SETI Project. The original concept was sort of a toy galaxy you could fly around and explore. As we thought about, it became apparent that evolution was a very important component. Some of the very first prototypes involved how you would move around and visualize the galaxy. And then on procedurally generated creatures. Could we actually generate creatures through evolution so there was a vast variety of creatures rather than just the 20 or 30 fixed things that games typically include.

Originally, you referred to Spore as “massively single player.” And now?

Wright: Spore is a hybrid. There’s huge unexplored space between single-player and multiplayer games. With multiplayer games, there’s tremendous design limitations: Nobody can peak, nobody can pause time, no one player can be super powerful. These limit the experience you can give someone. But there is a huge benefit of getting a million people collectively building an interesting world. So our hybrid model aims for the best aspects of a multiplayer game without the worst drawbacks.

What are some of the research influences for Spore?

Wright: A lot of Richard Dawkins’ work. Edward O. Wilson, back in the very early origin of light phase. Stuart Kauffman wrote about autocatalytic sets, which are theories about the origin of life, like did life come to Earth on a comet or did it originate out of self-organizing chemical sets.

What are some ways creating Spore has been different than your other games?

Wright: One big way is the art team. Typically, we would just build a larger and larger army of artists to make more and more content, like in The Sims. But because we were doing this procedurally, our art staff was mainly concentrated on teaching the computer and giving players tools to make stuff. Another difference was the design density in Spore. Because there’s so many different genres and levels, I had a designer for every game level and the editors and Sporepedia.

Did the development of Sporepedia and the Web 2.0 elements contribute to the game taking until now to finish?

Wright: You can’t really say it took five months, three days and 47 seconds more because of that. We’re always looking at what we have, like we realized on the browser side that, Wow, it’ll be great if we add these extra features but that’s going to push us out a few more months, so let’s also change the Creature Editor and some game levels and add achievements and mission-based systems. You’re doing these things in parallel. Eventually, they have to be ready the same day. If one thing slips, you continue to polish and add a few little features you didn’t think you’d have time for.

You had to invent all the systems, right?

Wright: We researched what little had been done in computer science around things like procedural animation, which was mainly around humanoids, procedurally generating human animations. But almost nobody was generating animations where you didn’t know what the shape of the creature was. We had to basically invent our own kind of computer science for that.

What’s the prototyping exploration like?

Wright: In the early phases it entails me talking to a programmer about some system we want to explore and we build a very simple prototype like the ones we’re putting on our website. So start poking and prodding and playing with this little toy. It’s fun to watch stellar formation animation. It’s fun to play with autocatalytic sets. We’d build prototypes for each one of these and play with them and imagine a singular experience that involves some subset of these prototypes that use similar concepts that can be ramped in the players’ mind so they’re not having to learn, you know, 20 different things that are totally unconnected.

What do you hope fans will learn about science from Spore?

Wright: I want this to be more on the motivational side than the education side. I really want to spark people’s interest in these subjects. People still tell me they went into, you know, civil engineering because of SimCity. It wasn’t that SimCity taught them how to build a city, but it got them interested in how fascinating the subject is. That motivation is far more powerful than just trying to pour facts into their head. So, if nothing else I’d like people to come out, sit back, look up at the stars and think a little bit deeper about what a galaxy is.

In the recent Electronic Arts quarterly earnings call, CEO John Riccitiello suggested Spore might one day become a label of its own. Are some of tehse directions you’re talking about the basis for the expansion packs an ongoing label requires?

Wright: When a game is released, we have a good sense of how we can expand it in different directions. But you do first have to get it out to the public and see what they do with it. As we see the fans doing various things with it, it will become pretty clear to us that, Oh, yeah, this would be probably the best direction and we already have an expansion map, so we know how to navigate that terrain. But we’re also exploring entire other forms of media and starting to think, what does this brand mean. We want Spore in a very general sense to become this intersection between science and creativity.

Were you inspired by other video games?

Wright: I played a lot of space and strategy games, but one thing that always disappointed me in space games was that you’re presented with a galaxy with maybe 100 worlds. It was never vast like a real galaxy. Even the Spore galaxy is a tiny percentage of a real galaxy, but you get the sense it’s immense, with countless worlds to explore. And I’d never seen an evolutionary game where, again, there was a vast set of possible creatures you could come across and that could convey the diversity of real biology. So we started thinking about procedural solutions. Very early on we wanted to give players a really cool design editor so they could design a wide variety of creatures. A lot of our early prototypes explored whether we could do procedurally generated animations and textures and could we build an editor that was easy to use?

There is little question that Wright is one of the industry’s most important figures, as evidenced by the packed houses he always speaks to and the reverence everyone from gamers to other designers to reporters have for him.

For Wright, the release of Spore, is the completion of seven years of work and the finished product is a far cry from its earliest concepts, which he and a small team were first discussing while The Sims was still fairly new. Yet by then, he was already seen as perhaps the industry’s leading innovator for the entirely new genre of games he’d created.

Virtual world publishers talk about the benefit of aggregating the all the content their users make. What’s your take on that?

Wright: I like the idea. I was trying to figure out how to lower the friction of creation to getting into the game but also how do you make the creation process fun, so you don’t have 1 percent of people making stuff for the other 99 percent. Rather, how do you get 99 percent of people making stuff for the 100 percent.

(Credit:
Electronic Arts/Maxis)

What is it like to be at the end of this process?

Wright: It feels nice. It’s a big transition, because we’ve been working, working, working on this thing and it’s kind of like, a Frankenstein thing where you flip a switch and it comes alive and roars off into the world, and you don’t know what kind of hell it’s going to raise. So it’s kind of scary and exciting at the same time.

Does Spore seem like the same game as what you showed at E3 in 2005?

Wright: It seems like basically the same game. We expanded areas that we didn’t originally think would be important or fun, especially things like content sharing. We’d thought you would just play the game and stuff would appear. But as we developed more content and the ability to browse and explore it, we discovered how fun that process was and the social currency you get making something really cool and sharing it with other people. We borrowed the language of social networking and Web 2.0 to present what we’re calling the Sporepedia.

Proof of that excitement level was borne out by the more than 2 million people who downloaded the Spore
Creature Creator after its June release. This free feature allowed anyone to make creatures for the game in advance of its release, something that served two key purposes. First, it got people energized and gave them something to play with before the game was out. And second, it provided millions of creatures to populate the game with on day one, since everything that individual users created for the game is shared with everyone else, despite it being a single-player game.

Spore, which was first announced in 2005, takes players through the process of evolution, from simple cell-like creatures, step by step, on out into space, is the latest from The Sims and SimCity designer Will Wright.

On September 7, Electronic Arts will release its long-awaited and much-anticipated Spore. For many, this will be the biggest video game event of the year, and possibly even the last several years.

Aug 24

Come back here Tuesday morning to find out. Plus, later in the day, we’ll have some analysis on what Apple does announce, and CNET’s laptop experts, Dan Ackerman and Michelle Thatcher, will have a First Look and hands-on video.

(Credit:
Apple)

It’s that time again: Apple has invited reporters down to its Cupertino, Calif., headquarters for a special notebooks event, which means CNET News will be there to live-blog the whole thing.

The fun starts at 10 a.m. PDT Tuesday at this link.

CNET will be live-blogging the event from Apple HQ in Cupertino, Calif.

Apple says the focus of the event will be on notebooks. A redesigned MacBook and MacBook Pro are all but assured, but there are likely to be some other surprises too. Will Apple opt for Nvidia chipsets? Will there finally be a
Mac sold for less than $1,000?

Aug 24

An update to yesterday’s post: the $300 deluxe box set is sold out, according to the Nine Inch Nails Web site. The band made only 2,500 copies of the deluxe set, which means that they’ve already grossed $750,000. In preorders. In less than a day. That should be more than enough to cover the cost of manufacturing this set, and probably the initial runs of the lower-priced physical sets as well, plus recording costs (a high-budget major-label release might cost $100,000 to record). And since NIN is no longer on a label, every dollar of Ghosts sales from now on goes into the band’s pocket.

Of course, not every artist is NIN, with a 15+-year career and a core of extremely devoted fans, but any artist with similar credentials in an unhappy recording contract will certainly be considering whether to follow Trent’s lead.

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