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September 27, 1999 Microsoft Blasts JusticeMicrosoft blasted the Justice Department last week in closing arguments of the government's highly publicized case against the software company, calling the case little more than "red herrings, misstatements, and omissions." The government hasn't proved Microsoft broke any laws, instead smearing the company using E-mail snippets and videotapes to embarrass it, said Microsoft attorney John Warden. The government is prosecuting Microsoft for hardball tactics that others practice regularly, he said, citing an E-mail from IBM's Software Group VP John Thompson to Sun Microsystems chairman Scott McNealy in which Thompson said the companies, both Microsoft rivals, should work together to put Microsoft on the defensive. The government has a "double standard" in antitrust prosecutions, Warden said, calling the IBM-Sun conversations "collusion."
--Darryl K. Taft, Computer Reseller News
Duffield Moves On PeopleSoft Inc. founder Dave Duffield has stepped down as CEO of the enterprise software vendor, tapping current president Craig Conway to take his place. Duffield's resignation continues a process that began when the company named Conway, the former chief of interactive network broadcast vendor OneTouch Systems, president and chief operating officer in May. Duffield will continue as chairman; PeopleSoft declined comment. The change could energize the company, which has suffered poor financial results as the enterprise resource planning market has slowed. PeopleSoft "has more of a perception issue than a fundamental business problem, and that can sometimes be addressed by a change in leadership," says Extraprise Group analyst Allen Bonde. But, he warns, it won't cure everything: "ERP can still be a tough place to be."
Planning Means Y2K Optimism With less than 100 days before the end of the year, there's some good news and some bad news when it comes to year 2000 compliance. According to a study of 156 large companies released last week by IT services firm Cap Gemini America Inc. and research firm Rubin Systems, 82% of those surveyed don't expect non-compliant systems to pose a "significant business risk." However, only a little more than half of companies expect 100% of their critical systems to be compliant by year's end. More than one-third expect between 76% and 99% of their critical systems to be compliant by then. The reason for the optimism: Most companies surveyed say they're confident contingency plans will deal with any problems. Even companies that expect to have 100% of their critical systems compliant in time are focusing a lot of attention on just-in-case planning. John Ogens, global Y2K manager at Monsanto Co., expects 100% of the agricultural products company's critical systems to be compliant by October. Nonetheless, "over the next 100 days, we're focused on fine-tuning our contingency plans" (July 19, p. 42). While many are optimistic, 12% of companies say noncompliance poses a risk, and 6% say they're not sure of the potential impact. Of those expecting the greatest impact, most are manufacturers that anticipate supply-chain issues, says Howard Rubin, CEO of Rubin Systems. Overall, while the doomsayers who predict havoc may be overreacting, they help prompt companies to be more aggressive in addressing Y2K issues, Rubin says. "While there's optimism," he says, "the reality still is that no one really knows what will happen when you take all the individual possible problems and put them in volume."
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