KickAss
Gear News Archive: July 2001
July 31st
You Can Help Stomp
Out Rambus!
As Intel's good ship Itanic leaves port, CEO
Craig Barrett waves to Rambus Inc. Execs, left sobbing on the docks with
hankies in hand. He bids them a fond farewell as he strains to lean over
the railing, and he shouts "The consumer will decide!" as a new
round of sobbing breaks out on the docks below.
No this is not the opening scene to a surrealist
movie, but it may be the closing scene for Rambus Inc. The latest
twist in the tangled web of Rambus Incorporated's fortunes has Intel's CEO
admitting that Rambus memory may have kept the Pentium 4 processor from
reaching the market share it deserves. Barrett said, "Clearly if the
845 chipset allows the Pentium 4 family to go to these lower price points,
and those are the high-volume price points in the market, then you'd
expect it to ramp very quickly."
Intel is not abandoning Rambus DRAM just yet, but
they clearly recognize that the market will decide these things, and that
they can't come as decrees from On High. So there you have it
folks. You can now participate in the elimination of Rambus from the
face of the planet if you so desire. How? Just buy i845-based
P4 systems with SDRAM, rather than i850-based systems with Rambus
DRAM. If the equations shifts in favor of the i845, then Rambus will
be slowly phased out.
Of course it could have been different. If
Rambus hadn't gotten a severe case of the greedies, they could have become
the high performance, higher priced memory 'object of desire'. That is if
they hadn't tried to extort money from the entire SDRAM manufacturing
industry, making all their potential friends into overnight enemies. Their
reputation is so tarnished now that even performance enthusiasts find it
difficult to buy machines branded with the Rambus moniker.
If only they could have it to do over again,
maybe things would turn out different...... Nah!
Dr.
John
EE
Times
The Inquirer
July 30th
Intel's Tualatin
(O.13u) PIII Can't Catch the Athlon
The Tech Report and Hot Hardware have Benchmarks of
the new 0.13 micron Pentium III (Tualatin) versus the Pentium 4 and the
Athlon. The Tualatin is currently at 1.2GHz, which puts it at a
disadvantage vis-à-vis the Pentium 4 at 1.8GHz and the Athlon at 1.4GHz.
Indeed, the newer, smaller, faster PIII seems to
get left in the dust as the Athlon and P4 slug it out. The most
interesting results are that the Athlon with DDR memory wins in most
benchmarks, even when up against the higher clocked Pentium 4 with Rambus
DRAM. The Tualatin lags behind in almost every case.
When the Tualatin was overclocked to near 1.5GHz,
it gave both the Athlon and the P4 a run for their money, beating them in
several benchmarks. And speaking of money, the Athlon is by far the least
expensive chip of the bunch, so in my opinion, it still deserves the
crown.
Loyal Intel enthusiasts will have a choice for a
short time now, between a Tualatin PIII, or a P4. But considering
that the Tualatin at 1.5GHz beat the Pentium 4 at 1.8GHz in benchmarks
like 3D Mark 2001, Intel may not be anxious to flood the market with
Tualatins, lest they cut into already lagging P4 sales.
These results may explain why Intel is phasing
the Tualatin out as quietly and quickly as it appeared. The Celeron
will remain the low-end Intel CPU, safely slower than the P4 so as to not
rock the boat. The P4 will be the remaining choice at the high end.
The Tualatin will live on for some time in notebooks, and the 512KB L2
cache version will find it's way into small 2-way servers for a little
while. But the death of the Pentium III draws nigh.
Dr.
John
The
Tech Report
Hot
Hardware
July 27th
Is the Windows XP
Performance Hit Intentional?
Benchmarks of Windows XP versus Windows 2000 have
shown that even with the newest release of XP (RC1), the new operating
system performs at least 25% slower than the previous operating
system. Even with the new "look and feel" features,
and new background tasks disabled, the performance of XP remains about 10%
below that of Win 2K.
Each time Microsoft releases a new operating
system, the allegations fly that the new OS requires more CPU power as a
devious method of driving new hardware sales. People buy the new OS
and install it, only to find their machine now performs more poorly, not
better. The end result is that many customers upgrade their
hardware.
So with benchmarks clearly showing potential
customers they will not get as much performance from their machines after
the upgrade, will this hurt XP sales, or help hardware sales? Only
time will tell.
Anand
Tech
Windows XP .Net
Scaled Back for Now?
Privacy Groups filed formal complaints yesterday
with the FTC concerning the bundling of Microsoft's .Net services in their
new XP operating system, which is scheduled for release Oct. 26th.
Coincidentally, on the same day, MS announced it would not include the
business to business portion of .Net (known as Blackcomb) in the initial
release of Windows XP. The question now is, will the FTC let MS
release XP on schedule with it's current version of .Net (including
Hailstorm, Passport and Wallet)?
Based on previous releases of Windows, it's my
un-educated guess that MS will be allowed to release XP on time.
There may be some stipulation about having Verisign, PayPal or other icons
on the desktop to give customers a choice, but that would be about
it.
MS clearly intends to dominate both the business
to customer as well as the business to business internet transaction
market, but they may have realized it could be too much to take on all at
once. Blackcomb is now scheduled for a later version of XP, to be released
in 2003.
Dr.
John
The
Register
July 26th
Windows XP Release
Challenged
Privacy advocate groups EPIC
and Junkbusters,
among others, are filling motions with the FTC today to block the October
26th release of Microsoft's Windows XP operating system. The dispute
involves Microsoft's bundling of the .Net service, which includes several
components, including 'Passport', 'Hailstorm', and 'Wallet' (the latter
being Bill's favorite).
At issue is the fact that Microsoft will attempt
to become both the keeper of personal information, as well as the
gatekeeper for Internet secure transactions through it's dot Net services,
which are an integral part of Windows XP.
Hailstorm will be the information collector and
distributor, under the guise of being your 'gateway to your personal
information', regardless of where you are, or who's machine you are
using. Passport and Wallet will be the secure transaction component
of .Net, and they have been likened to MS providing each user with an
"Internet drivers license".
In the end, Microsoft intends to put itself and
it's services between end users and all Internet transactions, which will
lead to more of the PC's functions to be centralized and under Microsoft's
control. The idea is to slowly wean the public on the idea that they
will need to pay MS a monthly fee for it's services, which they hope will
eventually become the only real choice Internet shoppers have. MS
has decided that advertising on the Internet is not a money making
proposition, so they want to turn the Internet into .Net, with monthly
licensing fees for end users.
How many of you want MS to have all your personal
information, credit card numbers, and on top of that, charge you a monthly
fee for using their transaction services?.... Raise your hands!
Dr.
John
CNET
link
Discuss on our message board
July 24th
Intel/Inquirer
Bad-Mouth AMD
The processor wars are heating up and seem to be
approaching critical mass. The savage processor price war has now
developed further into a PR/propaganda war. Mike Magee over at The
Inquirer rarely tows Intel's line, but seems to have done just that by
reporting that "some AMD Athlon and Duron chips are duff" (Brit
slang for busted).
This is exactly what big-time Intel investor Paul
Engel wanted reported. Intel, and those with large monetary stakes
in the company's fortunes, have long sought to bad-mouth AMD chips as the
cheap, unreliable alternative. And they have certainly had success
in the corporate arena where AMD chips are chump. But the PC enthusiast
group has found otherwise: that the AMD Athlon is a better (and less
expensive) processor for most of today's applications and games than the
Pentium 4.
So what is this tale about AMD processors being
"duff"? As long as nearly 2 years ago, scattered reports
surfaced here and there on the Internet that some K6-2 chips did not
display JPEG and MPEG compressed images correctly. This story was
true, but pertained to a tiny fraction of the total number of chips that
left the fabrication plants. In other words, it was a quality
control problem with a small number of marginal chips (probably those near
the edge of the wafers used to produce the chips). This is in sharp
contrast to the several design flaws that Intel has let get though with
it's processors, including the famous bug in the original Pentium
processor.
We have heard later reports that a very small
number of Athlon chips also exhibited the same compressed image problem,
but in our experience making computers for sale, we had never run into a
single AMD processor that had this problem. Considering that we have sold
many hundreds of Athlon and Duron processors over the last two years, I
would have to guess that the percentage of AMD chips with this problem is
far below 0.2%. And because AMD has said it will immediately replace any
CPU with the problem, it seems to be much ado about nothing.
It does point out one thing though. Companies
should not try to save money during the "price wars" by skimping
on quality control. It is a sad fact of the numbers game though that
QC is one of the first things to go during an industry price war, and the
end result is tarnished reputations and irritated customers. Even if
the number of bad parts is minuscule, you can bet your bottom dollar the
competition will make the most of the bad press, with the help of
reporters, of course.
Dr.
John
The
Inquirer
Van's
Hardware
July 22nd
Warzone 2100
Rebirth
Many 3D real-time-strategy games have come out
over the last 3 years, but one of the first was one of the best.
Warzone 2100 came out in 1999, but it is still played today by it's fans
who find its mix of simplicity, strategy, weapons, vehicles and buildings
to be unmatched by later, more flashy 3D strategy games. But Pumpkin
Studios went out of business in early 2000, and version 2 of Warzone never
materialized (see what happens when you pirate games instead of buying
them??).
But before they went out of business, they posted
their map editor for download so that fans could make their own maps and
scripted games. Well, the most loyal fans have done much more than
that. They have organized a programming group to keep Warzone 2100
alive. As many as 50 volunteers have chipped in time and talent to make
new Warzone campaigns. The name of the project is N.E.W.S.T.
Currently they have several new
maps, which are in fact mods as much as they are new maps. These mods
give you new weapons and vehicles (including flying construction
vehicles!), as well as new scenery. It's very refreshing to see new things
added to Warzone after all this time. They are also working on new
campaign mods for the game, which should be ready for download soon. On
top of that, they have a startup
utility which gives you more control over Warzone 2100 at startup.
If you liked Warzone 2100, get ready for some
more fun. For starters, I recommend just downloading a few of their
new maps/mods (you'll need the official 1.1 patch, which is available for
download). Later you may want to give the World Editor a shot, and
see how good your map making skills are. There is lots more advanced
stuff to download too, but be careful with the 1.11 patch/mod, I had some
trouble with it.
If you don't have a copy of Warzone 2100, you may
be out of luck. It is not on sale anywhere anymore, so your only
hope is to "borrow" a copy from someone who has it.
Warzone 2100 started the 3D real time strategy genre, and is still
considered one of the best. Now, with it's new facelift, and
upcoming campaigns, it's got a second lease on life. If you like
Warzone, I highly recommend NEWST. Let's give them all the support
and encouragement we can.
Dr.
John
NEWST
home
July 20th
Windows XP Manifest
Destiny?
The Inquirer has a story today which states that
there is a fundamental flaw in Windows XPs new "User Experience
Controls". The article was a little vague on the situation, so I did
a little digging. The user interface in Windows involves a file called
ComCtrl32.dll, which stands for common controls. This library handles the
"look and feel" of Windows applications. Windows 98/Me and
Windows 2000 use ComCtrl32.dll version 5.8, while Windows XP will ship
with version 5.8 for backward-compatibility, and version 6.0 for the new
"XP look".
To get an XP-compatible application to have the
new spiffy look of Windows XP, it will need an XML file included which
tells Windows to use ComCtrl32.dll version 6. These new files are called
manifest files (doesnt the Mac use manifest files?).
Here is an excerpt from Microsofts
windowsxp.devx.com website. "Isolated XP applications use a manifest,
which is an XML file containing information that self-describes an
assembly or an application. All binding and activation metadata, such as
COM classes, interfaces, and type libraries, is now stored in the
manifest, rather than the registry. There are two types of manifest files:
applications manifests, which describe isolated applications, and assembly
manifests, which describe individual assemblies".
What The Inquirer is reporting is the fact that
if a manifest file is copied to the C:\Windows directory, Windows XP will
no longer start. Only deleting that manifest file from the Windows
directory will get the machine up and working again. If true, MS may have
some serious work to do before XP is ready for release. And speaking of
the release date, head over to the official
XP web site for a countdown clock!
This is an extremely late date to be hearing
about serious design flaws in XP. It seems a little hard to believe that
such a large bug could have been missed up until now, especially because
MS has made such a big deal about software developers testing their
applications thoroughly with ComCtrl32.dll version 6, to make certain that
applications dont get "broken" as they say. It will be very
interesting to see how this story develops over the next few days and
weeks.
Dr.
John
Links:
The Inquirer
devx
DDR More Bandwidth
Efficient Than Rambus?
Van Smith has a new web site, and he's come out
swinging with a new article comparing the bandwidth efficiency of DDR DRAM
to Rambus DRAM. Surprisingly, DDR DRAM wins (77% efficiency vs. 64%
for Rambus). Rambus still wins the straight memory bandwidth
competition, but it uses that bandwidth less efficiently than DDR
DRAM. Van has some other choice comments on Rambus Inc. as well.
Van's
Hardware
July 19th
Is MS Backing Off Windows XP
Activation?
The rumors are flying from both sides of the
product activation divide. Microsoft is simultaneously saying that
it may loosen up the way XP activation works, while at the same time
saying that the actual product activation scheme in the shipping version
will be different than the current scheme.
At the same time, more cracks have been announced
for the existing scheme. It should be clear to Microsoft at this
point that they are in a lose-lose situation here. Changing the
activation scheme in any meaningful way this late in the product cycle is
nearly suicidal. At the same time, keeping the system as is will
certainly lead to clogged activation support phone lines, and angry
customers.
What's a software giant to do? If they are
serous about getting XP right, they will tone the activation scheme down
significantly, or remove it altogether. MS understands better than
anyone that burdening your paying customers is no way to stop software
piracy. Software pirates cost MS far more than home users with 2
computers and one copy of Windows. So if they want to go for the
goldmine, rather than the piggy bank, they know that product activation
isn't the way to do it.
Dr.
John
July 17th
Windows XP
Activation Smashed!
If the report over at tecChannel.de
is correct, then the Windows XP product activation (WPA) scheme is very
weak, and is easily cracked.
The entire Activation Code system is dependent on
a single file called wpa.dbl. This is the file that stores
information about your hardware setup and the state of product
activation. Also, the date of XP installation is stored, so that if
4 hardware items are changed more than 30 days after XP installation, then
re-activation becomes immediately mandatory. In other words, once
the 30 day period is up, your grace period is over, and re-activation must
be done immediately after making the hardware changes.
The wpa.dbl file is located in the
c:\windows\system32 directory, and is deleted by the system as soon as the
4th hardware change is detected. Without the file in the system32
directory, re-activation becomes necessary. However, the folks over at tec
Channel found that saving your wpa.bdl file, and copying it back to the
system32 directory negates the re-activation scheme! This is a
childishly simple work-around, and makes me wonder how serious MS is about
implementing a rock-solid product activation scheme.
It may have been Microsoft's intention all along merely
to stop inexperienced home users from installing a single copy of XP on
multiple home machines. But that's not enough of a problem for MS to
make such a controversial move with the most touted operating system they
have released in years. Indeed, it may be the case that they
originally had big plans for WPA, but had to scale it back as potential
problems cropped up during early testing.
Perhaps the thing that I noticed most was the
product activation screen that was shown at tec Channel. They give
you two phone numbers you can call to activate XP. One is toll free
(which will be swamped), and the other is a toll number, which many
customers will opt for after waiting endlessly and fruitlessly to get
through on the 800 number.
Why do I think there will be problems getting
through to the toll free activation number? Because you need to
carefully read off a 50 (that's a big 5-0) digit number to the operator,
who must enter that code without any typos or transpositions. How
many customers will miss at least one number out of 50? How much
will this slow down the process and back up the phone calls coming into
Microsoft's activation center? Plenty.
The first few days after XP debuts will be a
living hell for the operators at MS, and for the customers who just want
to get the activation process over and done with. And considering
how easy the existing WPA scheme is to crack, it makes me stop and wonder
why MS would even consider creating such a potential nightmare scenario
for their operators and their paying customers, when the benefits are so
dubious.
The extreme ease with which WPA is circumvented
has led to speculation that MS has something tougher up it's
sleeves. The logic here is that they may not want to tip their hand
before the operating system is even released. I have my doubts that
they will be making any significant changes though, because they would not
have enough time between now and October to get the beta testing done on
any new scheme they implement.
Dr.
John
July 14th
Rambus Royalty
Retribution
So what has been going on with Rambus Inc.
recently? There are court cases and judgments a plenty in Rambus
future, but lets take a look at where their business plan has gotten
them so far.
For those of you who are not up on recent Rambus
scuttlebutt, they are an intellectual property Corp. that deals
exclusively in patents for computer memory modules. They have gotten
themselves into hot water recently when it was disclosed during their
first patent infringement case against Infineon Technologies, that Rambus
had used information garnered from memory standards meetings to amend
their pending memory patent applications. The revelation of this
misappropriation resulted in Rambus losing the court case and having
punitive damages levied against them.
It became clear during the court proceedings that
Rambus had developed a business plan in the early 90s whose sole aim
was to patent as much of the technology in modern computer memory as
possible, with the intent of charging memory manufacturers royalties for
every stick of memory sold in the World. The plan was working until Rambus
actually got to court in an attempt to force Infineon to pay royalties on
the SDRAM memory it was producing. Thats when the plan began to unravel
from both ends.
The first part of the unraveling was the high
litigation costs that Rambus incurred as a result of pursuing multiple
court cases against several larger, better funded corporations. This cut
heavily into their coffers. The second part of the unraveling was the high
cost of Rambus DRAM (their invention) relative to SDRAM (the memory design
they misappropriated the patents for). This made the SDRAM royalties that
Rambus was receiving from several corporations, including Samsung, more
important for the moment that Rambus DRAM royalties.
Then the third and most devastating factor cut
in. SDRAM prices plummeted to historical lows! And because the royalty
payments made by companies like Samsung are a percentage of the price,
royalty payments to Rambus have also plummeted. Add to this the fact that
large memory makers are now negotiating reduced royalty payments, in light
of the poor state of the memory industry, and you've got a Rambus royalty
meltdown in progress.
So the end result is that the Rambus business
plan has failed. Their attempt to patent by nefarious means memory they
did not design has backfired in court. Their attempt to collect huge
royalties from the entire SDRAM industry has dried up, and turned memory
manufacturers against them. And their hopes of getting the cost of Rambus
DRAM down close to the price of SDRAM has become a pipe dream, with
ever-receding prices on SDRAM making it a moving target that is impossible
to hit.
All in all we can say that the computer memory
industry is no longer the cash cow it used to be. The days of $600 sticks
of memory have been resigned to history. This means that Rambus used the
wrong business model to get into the wrong industry at the wrong time.
Couldnt have happened to a nicer bunch of folk.
Dr.
John
Links:
The Inquirer
EBN
EBN2
July 12th
Microsoft Caves on
IE Integration and Licenses
Microsoft
has been fighting tooth and claw to keep Internet Explorer tied to the
Windows operating system for years. They said it was an integral
part of the OS, and could not be removed. It's mandatory presence in
the OS was merely a matter of Microsoft exercising their "freedom to
innovate".
If
true, their freedom just got taken down a notch. As part of the ongoing
discussions between the Justice Department and Microsoft, the software
giant agreed to make Internet Explorer an optional part of Windows XP,
with a remove function in the "Add/Remove Programs" utility.
This
isn't just good news for Netscape and others who have suffered from
Microsoft's anti-competitive practices, but also for consumers who almost
certainly will appreciate the new flexibility. Internet Explorer is
known to make the Windows operating system less stable (I can confirm this
from much personal experience), so it's removal could help make computers
more reliable.
Microsoft
also agreed to change their license agreement for the OS, which now makes
it acceptable for computer makers to change the desktop appearance, or to
add and remove icons at will. This is exceptionally excellent news
for system integrators. But will these changes be enough to satisfy
everyone, including the Justice Department? Only time will
tell. It's a darn good start though, and hopefully, Microsoft will
continue along this road of rationality, rather than belligerently
cramming the "freedom to innovate" down everyone's throats.
Dr.
John
July 10th
Windows XP
Activation Code
As
the debut of Windows XP nears, the discussions about it's product
activation scheme have grown exponentially. Rumors have ranged from fears
that Microsoft will get all sorts of personal information about each user,
to the possibility that slight changes in a computer's configuration will
force the user to acquire a new activation code. A group in Germany has
just published a paper detailing how the Windows XP activation system
works. They downplay the negative aspects of the activation system, but
the negative aspects are clearly present.
The
good news is that very little information about each user will get back to
Microsoft Central. But the
privacy issues have never loomed as ominously as the fact that the
activation is tied to your specific hardware configuration.
Microsoft had to come up with a method that they felt would prevent
people from installing the same copy of XP on different computer systems.
The simplest way to do that would be to couple the activation code
to a hardware specific code which is generated based on your computer's
configuration. Then the
question arose, "how many hardware changes should we let a user make
before reactivation is required?" The answer they arrived at was
three. The fourth change kicks in re-activation.
Below
is a listing of the different hardware components that the XP activation
system checks when generating a unique ID code for each computer system.
double
word | offset | length | bit-field value based on:
H1 | 0
| 10 | volume serial number of system volume
H1
| 10 | 10 | network adapter MAC address string
H1
| 20 | 7 | CD-ROM drive identification string
H1
| 27 | 5 | graphics adapter identification string
H2
| 0 | 3
| unused, set to 001
H2
| 3 | 6
| CPU serial number string
H2
| 9 | 7
| hard drive hardware identification string
H2
| 16 | 5 | SCSI host adapter identification string
H2
| 21 | 4 | IDE controller identification string
H2
| 25 | 3 | processor model string
H2
| 28 | 3 | RAM size
H2
| 31 | 1 | 1 = dockable 0
= not dockable
According
to the authors, the H2 31 value for dockable notebooks will give the user
a little more wiggle room with their hardware configuration. Otherwise
just plugging the notebook into the docking bay could trigger the
requirement for a new activation code.
In
plain English, here are the things that are monitored by the activation
code: Hard drive volume number (generated every time you format a drive),
Network card (MAC address), CD ROM, graphics card, CPU serial number, hard
drive ID (distinct from volume number), SCSI adapter, IDE controller, CPU
make and model, amount of RAM, dockable vs. non-dockable system.
While
the authors make the point that you can change a couple items in your
system without triggering re-activation, they clearly did not discuss the
many ways that re-activation could be invoked.
Let's
assume you have a desktop system that arrived with XP installed.
You go through the activation process so that you can determine if
your new system is working properly.
After the activation and testing phase, you decide to add another
stick of RAM from your old system, as well as the network card from your
older computer. Also, you install the CD burner from your old system. Then you realize that the CPU serial number feature is
enabled on your motherboard's BIOS. You
decide you don't want that feature enabled.
After disabling the CPU serial number and rebooting the system, the
XP product activation routine will kick in again.
This is because you just changed four of the items in the list. So
it's back to the MS phone lines to get another activation code.
Microsoft
is clearly counting on two things. The
first is that most people don't change their computer's hardware
configuration at all, and the second is that everyone won't try to
activate their operating systems all at once.
If tens of thousands of people attempt to activate Windows XP on
the same day, many of them will have great difficulty in getting through
to Microsoft's activation center. That
will make even the most inexperienced Windows users very unhappy.
Perhaps
the most onerous part of the activation scheme will fall upon PC power
users. Most PC enthusiasts
swap hardware in and out of their systems on the slightest whim.
This practice will become exceedingly tiresome with Windows XP
installed on their systems. Further,
companies that need to test and validate various hardware configurations
before selling them or posting hardware reviews may find Windows XP
unusable. For example, in
order to test motherboard and CPU combinations (as in the case of computer
upgrade kits), the tester needs to have a hard drive handy which has the
operating system loaded on it. However,
each time a motherboard and CPU are mounted on a test bench and connected
to the hard drive with Windows XP installed, product reactivation will be
required. That is an
impossible situation for hardware testers.
Apparently,
Microsoft realizes this is an unworkable situation for corporations to
have to deal with. As such,
Windows XP Professional version will probably not incorporate the product
activation scheme. Instead,
only the home version of Windows XP will be saddled with this
inconvenience. In my mind it
is clearly part of Microsoft's strategy to entice as many home users into
buying the substantially more expensive ($300) professional version of the
operating system in order to avoid the activation scheme.
It
is fully within Microsoft's rights to protect their software from piracy.
However, it is clear that the product activation codes incorporated
into the home version of Windows XP will do little to stop software
piracy. It may force users with extra cash on hand to buy two copies of
Windows XP to populate their two home computers, but that is not where
Microsoft loses most of their income. Organized software bootleggers cost Microsoft far more income
than folks loading one copy of Windows onto two machines at home.
And
software bootleggers are much easier to catch than going through this
incredibly complicated software activation scheme to stop small-scale
license infringements in private homes.
If Microsoft simply sent representatives to the hundreds of
so-called "computer shows" that occur around the country each
year, they would be able to prosecute virtually all software bootleggers.
If you have ever gone to one of these computer shows, you almost certainly
would have seen bootlegged Microsoft products on sale for a fraction of
their actual cost. If
Microsoft were actually serious about software piracy, they would not be
concentrating their efforts on burdening their loyal paying customers,
they instead would be after the bootleggers with a vengeance. It's my humble opinion that they have their priorities bass-ackwards,
and are punishing their loyal paying customers, rather than the software
bootleggers.
Dr.
John
Links:
The Inquirer
Slashdot
"Fully
Licensed GmbH"
July 8th
Price Wars Hurt
Everyone But Customers
The news
throughout the last week has been dismal for computer makers, and computer
parts manufacturers. AMD stock was hit particularly hard after they
posted lower earnings. Intel also is not fairing nearly as well as
they have historically. What's going on?
The price
war. I and many others have been warning that a continued price war
would hurt all companies involved. And in fact, AMD and Intel sold
quite a few processors in the last quarter, but profits were way down
because of the price war (Link).
In the
short run, this will hurt all computer makers, as prices continue to slip
on a weekly basis. It is already hurting the chip makers bottom
line, and that will continue for the foreseeable future (Link).
The erosion of
memory prices in the last 2 months has reached unprecedented levels,
forcing many memory makers to close fabrication plants.
Everyone's
profits are down, even if sales are relatively good, because of the
intense competition and the price wars.
Indeed,
the lowered earnings of all computer-related companies, and poor PC sales
figures in general, have resulted in slumping operating system sales for
Microsoft. This OS sales slump may be in part
responsible for Microsoft's new and aggressive moves to threaten companies
into buying more site licenses. I suppose if enough new people
aren't buying MS software, Microsoft figured they should just go after the
people who are currently using it.
It is
interesting to note that intense competition has driven down the price of
every part of a modern computer, except one. The MS operating
system. Currently, the price of Windows can amount to as much as 20%
of a budget computer's total price. This is another clear indication that
MS has a monopoly in the OS arena.
The high,
deflation-resistant price of MS operating systems has not gone
un-noticed. Currently MS is in talks with the government about
reducing their pricing and licensing model as part of their concessions in
the anti-trust case against them. Unfortunately, only large named
accounts with MS will get the small break in price. All other
OEMs (original equipment manufacturers) will have to pay the same or
higher prices for MS operating systems. (Link)
Fortunately
for consumers, the competition in the hardware arena is very good news, but it can't last
forever. Companies are dropping like flies in Winter, and eventually
the amount of competition in computer-related businesses will be
reduced. In the longer run, prices may begin to rise again if the
price-meltdown drives enough companies out of business. So this
Summer is a good time to buy. But beware, buying a budget computer
from a company that is about to close it's doors can be a bit of a gamble.
Dr.
John
July 6th
Microsoft Hate Mail
Factory
Nothing
gets the ol' hate mail flowing like a negative editorial on Microsoft's
business practices. It almost seems as though the hate mail comes from a
Microsoft factory, churned out in vast shrink-wrapped quantities like
their software.
It's
heartwarming to know there are so many people out there with free time and
a bone to pick with anyone who criticizes Microsoft. After all,
Microsoft is the underdog here, and they need all the defending they can
get, right?
Some folks
even questioned whether the mailer was real, suggesting that MS would
never stoop to such a tactic. Well, here is a picture of the back of
the mailer for those non-believers.
Attention
MS hate-mail machine! Read before you flame. We use MS
software, we sell MS software, and for the most part we really like MS
software. But we don't like being treated like criminals, by a
company that assumes everyone is guilty until proven innocent. We
also don't like being threatened by a company we have supported for
years.
My point
for those who are too angry to think straight is this. Only a
monopoly could ever think about threatening their loyal customers into
buying even more software. Capitalism doesn't work that way. If MS
had any serious competition in the OS market, they would be using the
carrot approach, rather than the stick approach, to get more sales.
MS has gone too far this time, and it's about time the public speaks
out. You can flame all you like, but you won't change the fact that
MS has gone off the deep end with this mailer.
Flame Here => Dr.
John
Links:
Wall
Street Journal
The Inquirer
CIAC
July 5th
Microsoft Admits
It's a Predatory Monopoly!
A picture
is worth a thousand optical character recognition words. And this picture
is straight from Micro$oft themselves!
This
friendly mailer was sent out to virtually all businesses that are
considered "Microsoft Channel Partners". What kind of
message is Micro$oft sending here? First, that your business is
small and unimportant to Micro$oft, except as another tiny source of
income in a sea of paying customers.
Second,
they are tacitly admitting that they are a monopoly, since no company in
competition with others would send out such an insulting and threatening
mailer. Third, the choice of images clearly indicates Micro$oft
thinks of itself as a predatory company (you goldfish... me shark!).
Finally,
this mailer shows just how arrogant and unconcerned Micro$oft is about the
ongoing court cases against them, and how they intend to continue to do
whatever they want.
Now keep
this image in mind as you contemplate Micro$oft's upcoming XP operating
system with it's "activation codes". This is the
"feature" in the next operating system that will halt your
computer after you change it's video card, and tell you that you must
contact Micro$oft for a new activation number before you can
proceed. I have already heard horror stories of this thing kicking
in while one user was on a flight to a business meeting. Sorry pal,
you're out of luck until you get your new activation code!
Now that's
what I call the "Freedom to Intimidate"! Forget about that
freedom to innovate stuff. Sushi anyone?
Dr.
John
Happy July 4th
Everyone!
Desktop Athlon 4
Delay?
For those
of you hoping to get a new "Palomino" Athlon 4 for your desktop
this Summer, you may need to think again. The
Register has another in a long line of rumors about when the Athlon 4
for desktops will be available. If the rumor/roadmap is true, it
will probably not be until at least September before these parts are
available. And
then it will be several weeks or even months after that before they become
plentiful.
The
question is why is AMD delaying the Athlon 4 for desktops? First,
they don't have a lot of fabrication capacity, so they need to concentrate
on the higher speed 1.3 and 1.4GHz Athlons now, which are very
popular. They are also trying to introduce the 1.5GHz Athlon, but so
far that has been a slow starter. Also, with Pentium 4 sales in the
doldrums, and Pentium III sales faltering, AMD may not feel any pressure
to push the new Athlon forward until it has more inventory built up.
Finally,
AMD has a lot on it's table now for a smaller chip company. They are
not just working on the Athlon 4, but also on the newer Clawhammer 64-bit
processor, the updated Athlon 4 (Thoroughbred), the updated Duron
(Morgan), and even the much anticipated "Barton" version of the
Athlon with Silicon-On-Insulator technology. So it's my guess they
want to take things slow, and get them right. But this means that
customers wanting to upgrade this Summer will have to settle for a regular
old Thunderbird Athlon CPU.
Dr.
John
July 3rd
Pentium III Fire
Sale Coming?
The
Inquirer has a report today which suggests that Intel is getting ready to
kill the Pentium III line of microprocessors.
Mike Magee suggests that the Pentium 4 and Celeron processors will
round out Intel's offerings. But
what about the Tualatin Pentium III?
How could Intel think about discontinuing it before it even debuts?
If these
rumors are true, (how good are your sources Mike?), then I have to assume
that Intel feels that their product line is getting too confusing.
But why keep the Celeron when the 0.13 micron Pentium III is such a
better processor? The answer
may lie in the benchmarks that have come from testing the Tualatin. This
new version of the Pentium III is capable of outperforming Intel's fastest
Pentium 4 processor. In many
ways the Tualatin shows how Intel made mistakes with the design of the
Pentium 4 processor. It's smaller cache and longer pipeline put the
Pentium 4 at a disadvantage relative to the Tualatin in many benchmarks.
Intel is
hoping to fill the gap between the Celeron and the Pentium 4 by
introducing the i845 chipset with SDRAM support for the Pentium 4
processor. Intel wants to
move the Pentium 4 from a low sales volume to a high sales volume product,
and the new Pentium III is getting in the way.
Many Intel loyalists have skipped the P4 for now, and are waiting
for the Tualatin. Intel needs
to nip this trend in the bud, and get P4 sales figures moving up.
Hence, drop the PIII like a hot potato, and make the P4 affordable
for the masses. But will
enthusiasts want a P4/SDRAM system, or will they wait for P4/DDR systems?
Intel has
some real cogitating to do here. Are we going to see a Pentium III
Fire Sale in the late Summer or early Fall?
Dr.
John
Link: The
Inquirer
July 1st
NVidia Says No to
Microsoft (and
starts to act like Rambus!)
In these times when
nobody who is interested in making money ever says no to Microsoft, it's
refreshing to see NVidia being as plucky with MS as they are with everyone
else. It's a regular old clash of the Titans, with the exception
that one titan if far more titanic than the other.
Microsoft (the titanic
titan), is holding talks (do they ever stop having talks?) with graphics
industry leaders to determine what specifications Direct X 9.0 should
have. MS wants members to sign the usual mum agreement, as well as
an agreement not to try to make any of the stuff proprietary. NVidia
(the not-so-titanic titan) has apparently declined to sign, which raises
two questions.
First, will this
affect the relationship between MS and NVidia, who are working together feverishly
on the upcoming X-Box (remember, the holidays are only 5 months away!)?
And second, what has NVidia got up it's corporate sleeves that makes
signing the agreement a no-go?
Vertex and Pixel
Shaders. That's correct. NVidia is apparently in the process
of patenting things that MS has already included in Direct X 8.0 (oops),
and is also working on patenting things that may go into Direct X
9.0!
Holy Rambus
Batman! Haven't we heard this tale before? A bunch of
standards meetings attended by all in the industry, but one attendee is
desperately trying to amend and submit patents faster than Speedy Gonzales
can get a taco!? Yes, it's a play right out of Rambus Inc.'s
snidelyish business plan. But this patent trap seems better laid
than the Rambus plan. Microsoft has the resources to pay royalties
till the cows come home, and there is no danger that the graphics
chip/game console market will crumble the way the RAM market
did.
Now we can see a
clever plan unfolding, with Microsoft stuck between a rock and a very very
hard place. They can't abandon the NVidia X-box, and they have no
rights to the technology in it. Therefore, by the time the X-Box
comes out this Fall, you can bet your bippie that MS will have been forced
to sign licensing deals with NVidia to use the Pixel and Vertex Shaders.
Oh what a tangled web
we invent, when first we practice to patent.
Dr.
John
Link: The
Inquirer
June 29th
Rambus Inc.
Hindering New Memory Standards!
An article at EBN
states that current IP litigation, in particular the legal action brought
by Rambus against several SDRAM makers, is having negative effects on
current standards committees.
According to David
Balto, a former policy director at the FTC, "increasing litigation
and claims for licensing fees has dramatically increased uncertainty in
high-tech standard-setting bodies, undermining the effectiveness of these
bodies to facilitate technological change."
So now we can not only
thank Rambus Inc. for throwing the whole memory industry into turmoil, but
also for suppressing the development of new memory standards in the
future.
Balto suggested that
standards committees must adopt much stricter disclosure requirements for
all members of the committee. No more "silent partners"
like Rambus Inc., thank you very much.
I'd personally like to
see some teeth put into those committees to punish members who break the
rules. But that's not going to happen, because standards committees
have no authority over anyone. So it's always up to the courts to
decide these issues. Hence we can expect long rocky roads for future
standards committees of all types, especially if more IP companies adopt
the Rambus "business model".
Dr.
John
June 28th
And What of Rambus?
Fortune.com has posted
an article nailing Rambus Inc. to the wall. Here is a telling
excerpt about Rambus' attendance at the JEDEC memory standards committee.
"They listened as their
industry colleagues discussed an element known, in typically
impenetrable techno-gibberish, as "programmable CAS latency." A
week after the meeting, one of the two Rambus staffers, Richard Crisp, met
with a company attorney to talk about amending Rambus' pending patent
applications. Among the new technologies that Crisp wanted to add:
programmable latency. A few months before, Crisp had recommended adding
patent claims for "mode registers"--right after they were
debated at the same standards committee. Only a few months before that, it
was "low-voltage swing." All those technologies made the same
quiet journey from the standards committee agenda into Rambus patent
applications."
The article is an excellent
read. Perhaps now that Fortune has come out with this information,
making it more widely known, Rambus will have to reconsider it's
"business model" if you can call it that. You may recall
that the last company which Rambus took to court, Infineon, not only won the
case, but actually had a jury award them damage payments from
Rambus. It is unlikely that Rambus will fare much better in any of
their other upcoming court cases. But at least it keeps the lawyers
busy, and well fed.
Dr.
John
Copyright
2001, KickAss Gear
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