Virus set for Jan. 1, 2000
By Erich Luening and Wylie Wong
Staff Writers, CNET News.com
December 3, 1999, 12:10 p.m. PT
update Although your computer might be inoculated against the Y2K bug, there is a new virus floating about that
will change home page settings to pornographic sites and then wipe out hard drives at the millennium moment.
The virus--the latest in a series of increasingly flamboyant viruses that prey on vulnerabilities in Microsoft desktop
software--is called W32/Mypics.worm and is triggered by the date Jan. 1, 2000. The worm, limited to Microsoft Outlook and
Internet Explorer users, is received as an email attachment disguised as a picture.
Once opened, it infects the host computer and attempts to send itself using Microsoft Outlook
to up to 50 people in the users' address book. It also changes the Home page in Internet
Explorer to a site containing adult content, Symantec warned in an alert sent out today.
Symantec, which discovered the virus, rates this as a medium to high-risk virus.
But the damage to the unsuspecting user doesn't truly happen until Jan. 1, 2000. The virus
works by masking as a Y2K problem, which will prompt users to reboot. When an infected
computer is rebooted, however, the virus will attempt to format the local hard drives and erase
all data, Symantec said.
"The user's left wondering if this is all happening because of Y2K," said Vincent Weafer,
director of the anti-virus research center.
W32/Mypics.worm arrives in an email, with no subject line. The body of the message reads,
"Here's some pictures for you!" The email message contains a "Pics4You.exe" attachment
that is approximately 34,304 bytes in size.
Once the user opens the attachment, the worm loads itself into memory and executes by
sending out copies of itself attached to emails addressed to up to 50 people in the users
address list. It then modifies the system registry to manipulate the system startup and also
changes the user's home page in Internet Explorer to a GeoCities hosted Web site that contains adult content.
When this happens, and people notice the Home page change, Weafer said users should get suspicious and initiate
anti-virus scans on their machine. He warns this should be done before Jan. 1, so the virus doesn't launch.
"This is the fifth Y2K-related virus we've discovered so far," said Weafer. "There is a lot of activity around
Y2K. A lot of people are looking to get some of the publicity related to the problem." He, like other
observers, expects more people to try to write viruses between now and the first of the year and have it
trigger during the new year.
Although the newest Y2K worm is not a Melissa variant, the new worm is similar to Melissa, said
Narender Mangalan, Computer Associates' director of security. Several of Computer Associates' large customers have found
it on their systems.
The new virus is the third Melissa relative to hit in the last two weeks. Prilissa--which triggers during Christmas--and the
variant to Worm.ExploreZip--which deletes files--are the other two.
Prilissa also can knock out hard drives, but is triggered to go off on Dec. 25.
"[The W32/Mypics.worm virus] combines all the bad things the previous viruses had. It can send itself to 50 email addresses
on your address book, it's a date-triggered virus that triggers on Y2K. And it can delete the information on your hard drive."
Mangalan said this is yet another reason to prepare for Y2K, warning that people must make sure they're
Y2K-compliant. Otherwise, "When people come in after New Year's, they don't know if they're problem is
due to a virus or the Y2K bug."
People can protect their computers by not opening the attached document. Update anti-virus software to
ensure protection against the worm, said Weafer. Additional information on the new virus is available at the Symantec Web
site.
Christmas virus designed to hit
Windows
By Sandeep
Junnarkar
Staff Writer, CNET News.com
August 19, 1999, 8:10 a.m. PT
URL: http://www.news.com/News/Item/0,4,40691,00.html
update
Computer security experts have discovered a new virus that is designed to
damage Windows-based personal computers on Christmas Day.
The virus, however, has not yet been detected in the
"wild," or outside the laboratory setting, prompting most security
experts to consider it as a "low to medium" danger threat.
Privately held antivirus companies Central
Command and Kaspersky Lab have named the new virus Win32.Kriz.9862
and said that it contains an even deadlier payload than the Chernobyl virus
that brought down
thousands of computers in Asia this spring.
"This is a nasty virus, but there are no indications
that it has spread," said Roger Thompson, technical director of malicious
code research at ICSA, a trade group for
computer security makers. "I see nothing in this virus that makes it hard
to detect so I expect everyone will have a patch for it within a few
days."
Thompson also said that since the virus is set to come alive
on December 25, there is still time to get prepared.
But Keith Peer, president of Central Command, noted that
security experts knew about the Chernobyl virus in advance, but the malicious
code still managed to crash more than 300,000 computers in Asia.
"The problem is that if a virus like this gets out into
the wild, there are vast amounts of computer users that don't use virus
protection or don't update their programs regularly," said Peer.
"This can be very devastating."
Central Command said the virus is a memory-resident Windows
virus which will replicate itself on Windows 95, Windows 98, and Windows NT
systems, infecting Windows programs with EXE (executable) and SCR (screen
savers) filename extensions. It also infects Windows KERNEL32.DLL system
library that allows the virus to stay in the computer's memory during the
entire Windows session.
Central Command said the Win32.Kriz.3862 virus, on December
25, 1999, will erase the CMOS memory, overwrite data in all files on all
available drives, and then destroy the Flash BIOS by using the same routine
that was found in the Win95.CIH virus, also known as the Chernobyl virus.
"It tries to damage the hardware by doing a [Chernobyl]
type trick by trying to override the Flash BIOS,"
said Thompson.
He said that because Flash BIOS are designed to be field
upgradeable, it is possible for other software to write code into it. Thompson
said: "If it manages to override the Flash BIOS, the computer is
effectively dead till someone puts a new Flash BIOS in."
AMD to wrest away speed crown from Intel
By Michael Kanellos
Staff Writer, CNET News.com
August 7, 1999, 6 a.m. PT
URL: http://www.news.com/News/Item/0,4,40230,00.html
If all goes as planned, chipmaker AMD will finally be able to brag about having the fastest PC chip on the planet.
AMD will announce a 650-MHz version of the Athlon processor, formerly the K7, next week and make it available for sale the following week in an accelerated product launch, according to sources at the company.
The chip will allow AMD to brag that its processors are faster than rival Intel, which recently released a 600-MHz Pentium III. No significant upgrades to the Pentium III line are due until November, according to an Intel spokesman.
AMD also will release three other Athlon chips running at slower speeds. The company intends to push the chips into the lucrative high-end business market.
Various analysts have stated that the Athlon will outperform Intel's Pentium III on various applications when running at the same clock speed, which is measured in terms of megahertz. Benchmarks being released next week by AMD show that the chip outperforms Pentium III and even the higher-end Xeon by sizeable margins in a variety of applications. Nonetheless, being able to also promote more megahertz is important for marketing efforts.
AMD and Intel executives have stated on numerous occasions that consumers often make purchasing decisions on the clock speed of chips. With Athlon, AMD has equaled, but not surpassed Intel in chip clock speed.
The company previously said it would release a 650-MHz Athlon in the third quarter, but sources inside the company indicated it would occur after the initial debut of the chips in August. A 700-MHz version is due in the fourth quarter, while Intel is planning 667-MHz and faster versions of the Pentium III.
As reported earlier, IBM and Compaq are expected to be the first major PC companies to release Athlon systems, and the chips will also be available alone or in "white box" computers from dealers over the course of the month, sources said, although some added that obtaining a chip from these outlets could be difficult. Athlon PCs will start at $1,299.
Dangers lurk
Of course, success in the megahertz race will depend upon Intel not rushing a faster version of the Pentium III to market.
Smooth execution by AMD is another the big if. AMD has stumbled in the past with manufacturing and logistical nightmares that stalled product releases or prevented the company from producing an adequate volume.
Dealers said chip distributors told them as recently as August 5 not to expect Athlon chips, especially in volume quantities, just yet. The Athlon is not universally compatible with all expansion cards and other PC parts on the market, said other sources.
Further, the company is in the midst of several complex manufacturing initiatives, any of which could hamper production volumes. The company is in the process of shifting from the 0.25-micron manufacturing process to the more advanced 0.18-micron process. By the fourth quarter, the company will begin to make chips out of copper rather than aluminum and it hopes to start generating revenue from these chips by the first quarter of 2000. Also, a new chip factory is opening in Dresden, Germany, and dual processing is expected to reach the platform by the second quarter 2000.
AMD will also attempt to move into the untapped commercial market. The fear of manufacturing snafus, however, could scare away large customers.
For its part, AMD exudes confidence--"tens of thousands" of Athlons at all four speed grades have been shipped to manufacturers and distributors, executives have said. The company expects to make hundreds of thousands this quarter and will have the ability to make 1 million by the fourth quarter.
Although manufacturing problems have saddled the company before, they may not play as big a factor in the life of Athlon, said Nathan Brookwood, an analyst at Insight 64.
Because the chip is aimed at the performance segment, rather than the value segment, the company needs to produce fewer chips. Additionally, chip's design means AMD will not have to shift to 0.18-micron manufacturing or even copper to stay in a speed race with Intel.
Overall, manufacturing "is probably a more doable task than it was with the K6," Brookwood said. Besides, Intel has run into manufacturing issues of its own.
Branding stretegy
The new chips will also coming with a branding/segmentation strategy that will kick off next year. Similar to what Intel has done with its Xeon, Pentium III and Celeron lines, AMD will take the basic core processor and tweak the surrounding technology slightly for different markets. Bus speeds, which determine how fast the chip speaks to the main memory, will differ between product segments, for instance. Chip packaging, motherboard design and chipsets also will differ.
The Athlon Ultra, for instance, will be directed at the server and workstation markets, according to sources and published reports. Ultras will likely have faster buses, but also be capable of being put into multiprocessor processor systems. The secondary cache memory, a performance-enhancing memory reservoir near the processor, will also be larger on these chips. Caches as high as 8MB will be possible, AMD executives have said. Current Xeon chips top out with 2MB of cache.
The Athlon Professional, meanwhile, will be geared toward performance consumers and commercial desktops. It will be the same as the chips coming out next week, but will contain less cache memory and come in single-processor systems.
Next down the food chain will be the Athlon Select, which comes in a different package than the Professional and may not contain as many features.
Finally, Office 2000 opens for business
Finally, Office 2000 opens for business
By Erich Luening
Staff Writer, CNET News.com
June 7, 1999, 3:55 p.m. PT
URL: http://www.news.com/News/Item/0,4,37466,00.html
update SAN FRANCISCO--After repeated delays, Microsoft today announced the shipment of its
Office 2000 desktop application suite, a cash cow for the
company that is designed to help small businesses better integrate their operations with
the Web.
In a speech here heralding the much-anticipated release, Microsoft president Steve Ballmer
announced a new set of Web-collaboration services based on
Office 2000 that will be hosted by internet service providers Concentric Network and
Verio, InterLand, and AIS.
The new Web-collaboration services are based on Web Server Extensions built into FrontPage
2000, the Web page management application within the new
version of Office. The new service allows users who don't have a Web server onsite
collaborate on Office documents over via an ISP that supports the new
program, Microsoft said.
Support for the FrontPage Server Extensions allows users to publish documents directly to
Web sites hosted by the ISPs, as well as add the ability to conduct
collaborate within these documents.
"The new Office Web-collaboration services announced today will allow users in both
large and small business to benefit from the Web work style, regardless
of their Web server infrastructure," Ballmer said.
As expected, Office 2000 includes the latest generation of widely used business programs
including Word, Excel, PowerPoint, and Access. The suite was
available to large corporate customers in April and is scheduled to be in retail outlets
Thursday, Microsoft said.
Office 2000 makes extensive use of both HTML and XML as a file and data sharing format,
intended to make the software more Web-friendly.
Office 2000 will inaugurate a new component strategy and will, for the first time, include
Microsoft's FrontPage Web authoring tool. It will also include
PhotoDraw 2000, the company's new business graphics software.
Giga Information Group, told CNET News.com last week. "Office 97 was headed in this
direction, but Office 2000 is the first big view of how they are
implementing their Web strategy" on the desktop.
Keith Lindbeck, president of Beginning 2 End and a beta user of Office 2000, praised the
Web features within the new product.
"The majority of the benefit to users is the Web collaboration tools," Lindbeck
said. "It has made it much more interactive. And using FrontPage 2000 is much
easier, because they have opened it up to many more ISPs."
As previously reported, Microsoft earlier this year had pushed back the release date for
Office 2000 and told investors that the company would not be able to
realize revenues associated with the product for its fiscal third quarter. The company
said it deferred $400 million in revenue because of the Office 2000 delay.
The revenue was deferred because it can only be recognized when customers redeem coupons
for Office 2000 that were received when paying for Office 97.
Analysts were expecting about $4.65 billion in total company revenue for the quarter.
In his address, Ballmer said he expects Office sales to pick up soon after a surge with
today's announcement.
Microsoft competes with Lotus's Smart Suite and Corel's WordPerfect in the desktop market.
In other news, a group of third-party vendors announced support for a number of
small-business tools within Office 2000 that allow users to conduct direct
mailing campaigns and access and distribute financial data from back-office systems. These
new tools include: Small Business Customer Manager, Small
Business Financial Manager, and Direct Mail Manager.
Office 2000 Premium is priced at $399 for Microsoft Office upgrades and other qualifying
Microsoft desktop applications and $449 for non-Microsoft suites.
Premium for new users will be $799.
Office 2000 Professional is priced at $309 for version upgrades, $349 for non-Microsoft
upgrades, and $599 for new users.
Antivirus software firms Symantec and McAfee.com are
developing security software to protect consumers from malicious hackers who
could infiltrate a home PC network, according to sources.
The security threat in the home is real, analysts say, as
more consumers gain high-speed Internet access through cable modems and
digital subscriber lines (DSL)--and decide to network their home PCs together
to share files or printers.
Without protection, so-called broadband connections like
cable and DSL are more susceptible to breaches than dial-up Internet access,
as broadband connections are "always on," analysts say.
"There's nothing between you and the hostile world out
there," said analyst Rob Enderle of the Giga Information Group. "The
concept of coming home and having some kid deleting your hard drive, and just
messing up your life, is pretty good."
Since broadband connections are "always-on," which
means users don't have to log in each time they access the Net, cable and DSL
lines are attractive targets for malicious hackers. Security will become more
of an issue as high-speed Net access and networking technologies become more
mainstream, analysts say.
A recent Yankee Group
study found that 62 percent of U.S. households are interested in high-speed
Internet access, and 38 percent of those are interested in networking their
PCs and their other devices together.
New software solutions
Analysts believe firewall software, or new separate computer hardware with
built-in firewall capabilities, may prove to be successful in warding off
would-be meddling computer hackers from attacking home networks.
A firewall
is generally software used to protect sensitive data stored in a PC from being
accessed by unauthorized people.
Two smaller software makers--Signal
9 Solutions and Sybergen Networks--currently
make consumer firewall products. But now McAfee.com and Symantec, two of the
nation's largest antivirus software makers, are also pursuing firewall
software for home users--highlighting the growing interest in the nascent
market.
Symantec is expected to release a suite of easy-to-use
security products for home users in October, sources said. The product,
expected to be called Norton Security 2000, will include antivirus software
and a personal firewall system.
The Symantec product will examine the flow of data in and
out of a home network. For example, a firewall can warn a user that someone is
trying to access sensitive information--such as credit card numbers, sources
said.
In another example, the firewall technology could prevent a
person from breaking into a home network to place files, viruses, or other
information on a user's hard drive, said Chris Williams, Network Associates'
senior manager for security research.
Sources said Symantec licensed the firewall technology from
software maker WRQ and developed the rest of
the software internally.
Symantec representatives declined comment.
McAfee executives are also working on firewall technology,
but could not discuss plans, citing a quiet period during the company's
separation from its parent firm Network Associates.
"McAfee.com is extremely aware of the threats proposed
by persistent connections and the industry at large will provide firewalls and
other solutions to protect consumers in this enviroment," said Jim
Balderston, McAfee.com's business analyst.
Age-old problems
"Basically the home is being confronted by similar problems that
businesses faced 10 to 15 years ago," said Jeff Waldhuter, director of
technology and engineering for Bell Atlantic.
The potential problems with broadband connections are the
same problems experienced in most Internet
Protocol-based connections, including dial-up Net accounts, analysts said.
But the greater problem in this case is that cable and DSL connections are
constantly connected to the Internet.
"With 'always on' you're just exposed to the risks for
a greater period of time," said Brent Chapman, director of technical
marketing for Covad Communications, an
upstart DSL wholesaler.
The problem stems from a type of Internet marker called an
IP address. When a user logs on to the Net, they are assigned an
"address." That marker helps information--like email--get to its
proper destination. Yet that same address can also be used by malicious
hackers to pinpoint the location of a user and possibly gain unauthorized
access to that user's network.
Many broadband service providers are already looking to
offer users randomly assigned Net addresses, or addresses that change
constantly as to make them harder to track. But those numbers are only
randomly assigned each time a user turns their computer off.
"A lot of people are going to use their computers on
all the time, so they may have the same IP address for days," said George
Peabody, managing director for telecommunications research at Aberdeen
Group. "What we're seeing is a need for firewall software on an
individual user's computer because of the always-on nature of broadband
connections."
How to protect yourself
Some analysts believe service providers could be doing more to alert their
customers to potential risks.
"I don't think they're doing much [to protect their
users]," Peabody said. "I think they're just becoming aware of what
the risks are."
Yet some executives claim that many home PC users aren't
likely targets for an intentional PC attack.
"I think it's a little overblown. What value do I have
on my computer to a hacker? They're more interested in corporate networks with
intellectual property," Bell Atlantic's Waldhuter said.
Aberdeen Group analyst Eric Hemmindiger disagreed.
"If you're a high-schooler, figuring out what his
neighbor has on his computer might be more interesting than a corporation he
knows nothing about," he said. "Or if he had a falling out with a
friend, he could say, 'Gee, let me see what we can do there.'"
High-speed Internet users, short of buying personal firewall
software, are not without security options.
Bell Atlantic's Waldhuter said there are several simple
methods to keep a home network safe from attack.
"The first logical thing is you might want to password
protect you computer in your home. It's a simple thing you can do," he
said. "If you really have something that's sensitive, the thing to do is
not to leave it on your hard drive. Keep it on a floppy."
B
Microsoft to charge for Windows 98 bug fixes
By Michael Kanellos
Staff Writer, CNET News.com
April 6, 1999, 5:25 p.m. PT
just in Windows 98 users planning on getting bug fixes and other features that Microsoft
has been planning for
the operating system had better be prepared to shell out some bucks.
Microsoft is preparing another version of Windows 98 Second Edition, adding technology and
eliminating bugs that appeared
in the maiden release of its consumer operating system. Windows 98 Second Edition is due
in the fall. (See related story.)
The latest edition, called StepUp, is designed for consumers who are currently using
Windows 98 but want to take
advantage of new features the software giant has been working on for the past few months,
according to beta testers. To
date, Microsoft has discussed coming out with a new full version of Windows 98 and upgrade
packages that would take
users from Windows 3.1 or Windows 95 to Windows 98.
Current users, however, will have to pay for the privilege to clear out their bugs with
StepUp. Microsoft is going to offer the
upgrade package for an estimated retail price of $89, according to a spokeswoman from
Waggoner Edstrom, Microsoft's PR
firm. Microsoft will sell the StepUp CD on its Web site, but not post the bug fixes and
other technologies for free downloads,
she said.
Put another way, it will cost as much to upgrade from the current version of Windows 98 to
the fixed version of Windows 98
as it will to go from Windows 95 to Windows 98.
The charge will not likely sit well with users. In many cases, bug fixes are posted for
free by software companies. Microsoft
also indicated that the upgrade would come for free.
"If I'm right in assuming they will charge for the release, a lot of people are not
going to be too happy, since Windows 98 SP
1 was supposed to be freely available on Windows Update," said Nate Mook, webmaster
for the site BetaNews.
Additionally, some of the new features due with the new version of Windows 98, such as
Internet Explorer 5.0, will be free
elsewhere. A letter that went out today from Microsoft to beta testers read as follows:
"The next major release of the Windows 98 Second Edition Beta is right around the
corner and we need some information
from our testers. This release will be shipped as the Full and Upgrade versions, but one
more version is being added
specifically for those upgrading from Windows 98 Gold (retail). We are looking for testers
planning this type of upgrade to
test this special version, called the StepUp version, of Windows 98 Second Edition.
Back to Top
By Sandeep Junnarkar
Staff Writer, CNET News.com
August 5, 1999, 2 p.m. PT
URL: http://www.news.com/News/Item/0,4,40158,00.html
update Microsoft has turned up the heat significantly in its fight for Internet dominance, disclosing today that it may offer low- or no-cost Internet access that would compete for customers of America Online and other services.
Although the software giant is already entrenched in the Net connection business with its MSN Internet service, it is still a distant second to AOL. The largest online service boasts nearly 18 million subscribers who pay $21.95 per month.
"We are aggressively thinking about how to get people to use our products and services and offering a low-cost or no-cost service is an option," said Deanne Sanford, lead product manager at Microsoft Network. MSN is the No. 2 Internet access provider with about 1.8 million subscribers, according to research firm Jupiter Communications.
At stake in the ongoing fight between AOL and Microsoft--which also are mired in a related battle over popular instant messaging technology--is the future of how people will use computers and the Net. As the mass market flock online, both are trying to control what is emerging as the Holy Grail--the interface users see when they turn on their computers and surf the Web.
Microsoft has long dominated that interface because of the prominence of its Windows operating system. But Windows and other systems are increasingly being marginalized as the browser and other Internet technologies gain importance. Even applications that traditionally ran on the operating system are moving onto the Web.
"Microsoft is motivated by reasons other than world domination--namely, a major threat to its core operating system franchise," Merrill Lynch analyst Henry Blodget wrote in a letter to clients today. "Microsoft has hinted at a willingness to lose money on the access business in order to gain market share, and more importantly, sell operating systems."
Last month, Microsoft joined the free PC fray with plans to give a free computer to people who sign up for three years of its MSN Internet access service. AOL joined that game earlier, offering a $400 rebate on low-cost computers in exchange for a long-term commitment to its CompuServe service.
Despite Microsoft's moves, an AOL representative said the online giant is undaunted. "It is a mistake to underestimate the power of the AOL brand and the power of the service we have built," AOL spokeswoman Ann Brackbill said.
She said that AOL has been ambushed on several fronts by companies offering low cost access or free PC for Internet access services, but is still pulling away from competitors. "We're still firing on all cylinders after actually raising our prices last year to $21.95," Brackbill said.
AOL, which last year acquired Microsoft rival Netscape Communications, said it is willing to do battle in the access space. AOL believes that Microsoft can't touch its strong branding power across the United States.
"Microsoft's brand translates to a software company and an operating system company," Brackbill said. "We have a brand that is unmatched in the online space."
AOL said it already has a strong presence in the lower cost arena with its CompuServe unit which give 20 hours a month for $9.95. The service is a strong magnet for people interested in "value access," extending AOL recognition, the company said.
"A low-cost alternative would certainly attract a number of new users and give MSN a greater growth trajectory," said Zia Daniell Wigder, an access analyst at Jupiter. "But MSN will have a long way to go."
Back to Top
By Michael Kanellos
Staff Writer, CNET News.com
February 24, 1999, 7:45 a.m. PT
PALM SPRINGS, California--Intel captured the speed record for desktop processors at its
developer's forum by
showing off a chip that ran at more than 1000 MHz.
Intel showed off a Pentium III desktop prototype that ran at 1002 MHz, a new land speed
record for processors, according to
Albert Yu, senior vice president of microprocessor products at Intel. The chip was running
a computer running a multimedia
application featuring underwater seascapes.
This was the first time the gigahertz (one billion cycles per second) frequency has been
achieved on a standard microprocessor, Intel said.
The demonstration, part of Yu's keynote at the three-day affair, was mostly performed for
entertainment's sake. But it also served as a showcase for Intel to tout the Pentium III's
capabilities. The Pentium III shares a similar architecture to the Pentium II, which
currently
runs at 450 MHz. The Pentium III will come out later this week at 450 MHz and 500 MHz. The
demo, if anything, showed that the chip design can handle much higher speeds.
Yu had the chip running at 900 MHz and then asked his assistant to gun it. "I thought
you were going to show me something exciting," he said. Oddly enough, Intel
essentially was overclocking its chips, or running them past the commercially recommended
speeds. This is a
practice that the company discourages in others. IBM has said it has run processors as
fast as 1000 MHz, using an experimental 64-bit PowerPC chip.
Pentium IIIs running at these high speeds won't debut for some time. The first desktop
chip to hit 1000 MHz from Intel may be Foster, the code name for the successor to Pentium
III. Foster is slated for release in late 2000, said Yu. Intel's first commercial chip
running at 1000 MHz will likely be Merced, its 64-bit server chip coming out in the middle
of next year. McKinley, Merced's successor, will start at 1000 MHz, but it comes out in
2001.
Back to Top
Emachines unveils iMac knockoff
By Jim Davis
Staff Writer, CNET News.com
August 5, 1999, 3:30 p.m. PT
URL: http://www.news.com/News/Item/0,4,40175,00.html
update Upstart PC maker Emachines, which has grabbed headlines and market share by offering ultracheap computers, is training its sights on Apple with a computer that resembles the iMac.
Irvine, California-based Emachines today introduced the eOne PC, an all-in-one computer that looks like the popular iMac. Unusually for a PC, the design incorporates the monitor and the system's electronic guts into one case.
The eOne comes with a translucent "cool blue" case, while the original iMac had a two-toned case with "Bondi Blue" accents. Emachines hopes to avoid legal trouble because the shape of the computer is different from the iMac.
Clearly, the success of Apple's desktop has largely owed to its unconventional look, which is why PC makers have begun eyeing different designs. Apple is watching the moves of these companies very closely, and in July filed a lawsuit against Korean conglomerate Daewoo and U.S.-based affiliate Future Power over a $799 computer that looks nearly identical to the computer that inspired it.
Shape isn't the only difference. At $799, the eOne is also priced less than the $1,199 iMac. CNET News.com first reported on Emachines' plan for a more stylish PC last year.
The company had planned a launch for the first half of 1999 but delayed it as it focused on making enough of its hot-selling but more staid-looking PCs. Emachines has also been focusing on going public, which could happen as early as this month, said sources familiar with the company's plans.
The iMac has been Apple's growth engine since its introduction last year. As of April, when Apple last reported such numbers, the company claimed that 32 percent of fiscal second-quarter iMac sales were to first-time buyers, while 11 percent were "converts" from Windows-based machines--consumers that Emachines is also targeting.
Most PC makers haven't ventured too far from "beige box" standard, but Gateway, among others, recently released an "all-in-one" desktop that fuses a PC and a flat-panel monitor into one unit. Sony has also experimented with color, and magnesium ensconced notebooks are the latest design fad in portable PCs.
"[Emachines] is trying to go up the food chain, and that's the difficult proposition," said Ashok Kumar, a financial analyst with US Bancorp Piper Jaffray. "The problem is that there is no brand loyalty in this space."
Currently the bulk of Emachines' sales come from $399 PCs, which by Kumar's calculations are being sold at a loss. Kumar figures that to make money, the computers have to be priced closer to $599.
Inside, the Emachines computer will be similar to other standard Windows-based systems. The eOne will have a 433-MHz Intel Celeron, 64 megabytes of memory, and 15-inch monitor.
The system will include a floppy drive, unlike the iMac, and comes with some technology for networking PCs over home phone lines that the iMac doesn't currently include. Also, the system can accept PC cards, which are commonly used to expand the capabilities of notebooks. The iMac does not feature such slots, but its capabilities can be added to with the use of Universal Serial Bus peripherals.
The eOne will be available exclusively at Circuit City, the company said.
Emachines looks to be betting that the new system will help boost sales enough to make its IPO a more attractive option. Sources say the company is currently hoping to raise upwards of $650 million from its offering, but it has already received enough financing to take the company through the end of the year. One of those financiers is America Online, which has a ten percent stake in the company, said sources.
Back to Top
Mic
M
Back to Top
Consumers to benefit from new set-top standards
By Jim Davis
Staff Writer, CNET News.com
August 6, 1999, 3:15 p.m. PT
URL: http://www.news.com/News/Item/0,4,40215,00.html
A new breed of cable TV set-top boxes that will allow consumers to receive interactive services moved a step closer to reality today.
CableLabs, the industry's research group, issued a final set of hardware specifications for the next generation of advanced set-top boxes. Development of the plans marks an important milestone for getting the boxes into retail stores by the government-mandated deadline of July 2000.
Cable operators typically buy equipment from just one vendor because copyright protection technology differs between manufacturers. As a result, most cable boxes work only with one cable operator.
The new specifications standardize how these devices will connect to digital video systems, allowing cable companies and consumers to choose from a variety of manufacturers regardless of who provides their cable service.
Cable operators have been anxious to get the specifications completed so manufacturers such as General Instrument and Scientific Atlanta can make set-tops that run interactive applications such as video on demand, email, high-speed Internet access and new electronic program guides (EPGs).
"With the purchase of such a [standards-based set-top], the consumer will be able to use their set-top box or integrated television in compatible cable systems," said Lisa Lee, who heads the standards effort known as OpenCable for CableLabs.
"This also will provide a very competitive environment for new applications to be developed and deployed. Televisions as we know them today will be a thing of the past," she said in a statement.
Cable companies such as AT&T's Broadband and Internet Services division (formerly known as TCI) and Time-Warner Cable are interested in the billions of dollars in new revenue these applications could provide.
A new report from Forrester Research estimates that interactive TV services will generate $11 billion in advertising, $7 billion in commerce, and $2 billion in subscription revenues by 2004. Electronic program guides alone, which will function like portals to TV content, are expected reach into 55 million homes and create $3.2 billion in advertising revenues in the next five years.
Cable companies will derive another benefit: Consumers will purchase the set-tops rather than lease them from the cable operator.
Software still an issue
"What's left to do is actual implementation. Once these are deployed, then people will be able to find out what gremlins are in the ground," said Cynthia Brumfield, president of the consulting firm Broadband Intelligence.
The specifications for the various software components have not been formalized yet, she noted, but those are not as critical a step as setting the hardware specifications.
Eager to enter the market, AT&T has created an organization to oversee a strategy for rolling out interactive services and to handle technical work such as designing interfaces. Called the Interactive Offerings Group, it will also consider making strategic investments.
Brumfield said more cable operators will start similar operations because interactive content "is so different in nature that unless they have a coordinated, focused effort, I can't see cable operators knowing what to do."
Cable operators may wind up waiting, in either case. A middle layer of software that is needed to interpret data that is passing from a server to the set-top's operating system has not yet been defined by OpenCable, and Sun Microsystems, Microsoft, and Liberate Technologies (formerly NCI) are still vying for that critical piece of software, according to Leslie Ellis, cable industry analyst with research firm Paul Kagan & Associates.
For cable operators, this is software layer is needed so that applications they have written, such as the EPG and video-on-demand programs, can control what the box displays on the TV, no matter what brand it is. For consumers, that means the box they paid for will have access to the same features, no matter where they use it.
The only other option is to actually download a new operating system into the box, which is sometimes a difficult task.
Cable operators are aiming for the former scenario. Analysts say it's technically possible, but actually hammering out the details--especially given the animosities between Sun and Microsoft--could be difficult.
"Everybody wants their software in that box," Ellis said.
It remains to be seen who the cable companies will let in.
