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Edupage is a service of EDUCAUSE, an international nonprofit
association dedicated to transforming education through
information technologies.
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TOP STORIES for April 14, 1999
Computer Age Gains Respect of Economists
Amazon, eBay Announce Acquisitions, Alliances for Online-Auction
Businesses
Firms Adopt Rules to Stem Software Abuse
Cheap PCs Lead to Breakthrough: Computers Now in 50 Percent of Homes
ALSO
Internet Gap in Sex, Race Narrowing, Study Finds
Windows Conference No Love-In This Time
Is Millennium Bug a Fly in PC Firms' Ointment?
Compaq Steps Up E-Commerce Push Amid Woes
COMPUTER AGE GAINS RESPECT OF ECONOMISTS
For years economists have doubted the economic benefits of
information technology, but recent productivity growth is
persuading some skeptics that technology investments are now
paying off. Since 1996 productivity growth has averaged about 2
percent, approximately twice the rate from 1973 to 1995. Several
presentations on the effects of information technology on the
economy will be given tomorrow to Federal Reserve Chairman
Alan Greenspan and other officials. Many experts believe the
electronic links companies are now able to form with customers
and suppliers are promising for productivity growth. Forrester
Research predicts that by 2003, business-to-business commerce
online will jump to $1.5 trillion, from $48 billion in 1998.
(New York Times 04/14/99)
AMAZON, EBAY ANNOUNCE ACQUISITIONS, ALLIANCES FOR
ONLINE-AUCTION BUSINESSES
Amazon.com and eBay both announced separate deals yesterday
designed to bolster their positions in the hot online auction business.
Amazon, which entered the online auction business just two weeks ago,
announced that it was buying LiveBid.com for about $50 million. LiveBid
lets users watch auctions all over the U.S. and enables them to bid on
any item. Meanwhile, eBay announced agreements with shipping
companies Mail Boxes and iShip.com. The two firms will provide
enhanced shipping services to eBay's two million registered users.
eBay's customers already account for almost 5 percent of all person-to-
person package deliveries in the U.S. Auction services are one of the
hottest areas of electronic commerce because of their low overhead and
ability to generate profits almost immediately. Auction companies simply
provide an environment for users to sell products to one another, earning a
commission on each sale. (Wall Street Journal 04/13/99)
FIRMS ADOPT RULES TO STEM SOFTWARE ABUSE
Concerns about software abuse have led some companies to create
policies banning unauthorized software in the workplace. Worker
productivity, legal liability, the Y2K bug, and computer glitches are
among the issues that cause companies to implement software
policies. Companies can deal with software abuse by using
monitoring tools to detect or prevent unauthorized installation, or
thin-client systems without hard drives. Other solutions include
auditing software regularly and using networks to deliver applications.
Business Software Association's Karine Elsen says end-user
copying is one of the most common forms of piracy, noting that in
1998 her organization collected over $10 million in settlements
from over 500 U.S. companies. (Investor's Business Daily 04/13/99)
CHEAP PCS LEAD TO BREAKTHROUGH: COMPUTERS NOW
IN 50 PERCENT OF HOMES
The number of U.S. homes with personal computers has surpassed
the halfway mark. Although this development is not a surprise, it has
happened more quickly than many insiders anticipated. While the
increasing popularity of the Internet probably is a factor, figures show
that the introduction of a wider range of PCs costing less than $1,000
has democratized computer ownership. Half of the low-priced PC
customers never previously owned a computer. Households that
earned less than $35,000 in yearly income accounted for 56 percent of
$1,000-or-less PCs sales. The number of PCs sold at retail cost of
$1,000 or less has dramatically risen from 25 percent in the beginning
of 1997 to today's 61 percent.
(San Jose Mercury News Online 04/11/99)
=======================================
INTERNET GAP IN SEX, RACE NARROWING, STUDY FINDS
The digital divide is narrowing, according to a new study
released by the nonprofit U.S. Internet Council, as minorities
and women increasingly are getting online. Nearly one quarter
(23 percent) of blacks and slightly more than one third of
Hispanics (36 percent) are now online, with both of those
percentages expected to hit 40 percent or more by next year.
Meanwhile, the percent of women using the Internet likely
will hit 50 percent by next year, reaching the same level as men.
The study also says that just 7.5 percent of the U.S. population lives
in an area with no local Internet service provider (ISP), while over
75 percent live in area with four or more ISPs to choose from.
(Washington Times 04/13/99)
WINDOWS CONFERENCE NO LOVE-IN THIS TIME
Microsoft's Windows Hardware Engineering Conference (WinHEC),
which in the past has demonstrated the unity of the PC industry,
this year showed the diverging interests of some companies,
particularly Microsoft and Intel. The two companies offered
different views of how digitally enhanced devices will be
supported. Microsoft says its Universal Plug and Play initiative
will allow users connectivity to a range of electronics devices,
even without a PC or a traditional operating system. However,
Intel says digitally enhanced consumer electronics devices will
not be successful unless they are connected to PCs. Although
Microsoft will benefit from new information appliances if phones
and televisions, for example, use the company's software code,
Intel wants the next generation of this technology to generate a
demand for more powerful processors.
(San Jose Mercury News Online 04/12/99)
IS MILLENIUM BUG A FLY IN PC FIRMS' OINTMENT?
The effects Y2K will have on PC makers are still uncertain,
leaving PC companies unsure of whether to increase inventories.
One theory suggests that businesses will solve Y2K problems by
purchasing more computers, since new computers will not be
affected by the bug. Another theory argues that companies will
have spent so much time and money on Y2K fixes that they will
postpone buying new computers. If a flood of orders results from
Y2K, PC makers may not be able to supply the demand for machines.
Inventories held by PC makers, dealers, and parts suppliers are
now at a five-year low, according to a Deloitte Consulting
survey. Intel reports that some PC makers are stockpiling chips,
and the company is maintaining a reserve of microprocessors in
case demand surges. Other chipmakers, in addition to Intel, may
stock up on chips. (Investor's Business Daily 04/14/99)
COMPAQ STEPS UP E-COMMERCE PUSH AMID WOES
Compaq Computer yesterday announced plans to focus on larger
companies that need equipment, software, and services to engage
in electronic commerce. Compaq CEO Eckhard Pfeiffer says the
company will help large businesses with e-commerce by refocusing
the service expertise Compaq gained in the acquisition of Digital
Equipment. The announcement -- which follows the news that
Compaq's first-quarter profit will be less than half what Wall Street
Predicted -- indicates Compaq's awareness that to return to historic
growth rates, the company will have to progress beyond PCs.
Dropping prices for desktop computers and strong competition
from direct sellers such as Gateway and Dell caused Compaq's
business to suffer. (Los Angeles Times 04/14/99)
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Edie Clark, Editor
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UPCOMING EDUCAUSE CONFERENCES AND MEETINGS:
Networking '99 Conference on Advanced Networking
April 28-30, 1999, Washington, DC
http://www.educause.edu/netatedu/contents/events/apr99/
Information Resources for the 21st Century
May 5-7, 1999, Portland, Oregon
http://www.educause.edu/conference/regional/nwacc/1999/
CUMREC '99 Breaking Through: 2000 and Beyond
May 9-12, 1999, San Antonio, Texas
http://www.cumrec.com/cumrec99/
For additional information on these conferences see
http://www.educause.edu/conference/conf.html
For information on other technology related
educational conferences see
http://www.educause.edu/ir/events.html
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OTHER EDUCAUSE PUBLICATIONS
EDUCOM REVIEW is a bimonthly print magazine on information
technology and education. U.S. subscriptions are $18 a year.
CAUSE/EFFECT is a quarterly practitioner's journal about
managing and using information resources on college and
university campuses. U.S. subscriptions are $52 a year.
For additional information on these and other EDUCAUSE
Publications see: http://www.educause.edu/pub/pubs.html
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Edupage Copyright 1999, EDUCAUSE
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