Business Tech

It was a busy week in the worlds of browsers and operating systems, as Google proved--with its unveiling of the browser-based Chrome OS--that the two are colliding.

Imagine a computer experience that's much like TV: flip a switch and it's on. That was the vision conveyed by Google Vice President of Product Marketing Sundar Pichai Thursday as he offered the public its first look at Chrome OS, the new operating system based on the company's Chrome browser.

Chrome OS eliminates the boot loader and optimizes the kernel so that all the services that normally load with an OS start-up don't load until they are needed, Pichai explained.

Although Chrome OS is a year away from release, Google released the source code for the project on Thursday. It also relayed, through it's demo of the OS, a bit about how it thinks the Netbook should evolve. For one thing, Google plans to develop a detailed specification of hardware components that Chrome OS Netbook makers must adhere to in order to use the operating system.

"We really want software to understand the underlying hardware," Pichai said.

The Chrome OS unveiling came on the heels of sneak previews from Microsoft's Professional Developers Conference in Los Angeles. Among those was the release of an Office 2010 beta, with new features such as a mechanism for connecting Outlook to social networks.

The software giant announced plans for the formal launch of Windows Azure, the cloud-based operating system that lets developers write programs that run on servers in Microsoft's data centers. It will be in production for all users starting January 1.

And Microsoft showed it's serious about building a competitive browser with the first glimpses of technology in Internet Explorer 9.

Not to be forgotten in the browser wars, Firefox maker The Mozilla Foundation, reported revenue grew 5 percent to $79 million in 2008. The organization also noted that it's not interested in building a Firefox OS.

More headlines

Feds: Top e-tailers profit from billion-dollar Web scam

An investigation by a Senate subcommittee says millions of Americans were "tricked" into signing up for online membership clubs and were betrayed by many Web retailers.

AT&T loses first legal battle against Verizon ads

A federal judge has denied AT&T's request to force Verizon Wireless to stop running advertisements comparing the operators' 3G wireless networks.

AOL: We need to fire 2,500 'volunteers'

Layoff program begins December 4, just before spinoff from Time Warner. AOL says cuts will drop its annual operating expenses by $300 million.
• Nokia to lay off up to 330 R&D staffers
• AOL to sell MapQuest, maybe to Microsoft?
• AOL to spin off Dec. 9, begin trading Dec. 10

Antitrust concerns linger in Google Books deal

Opponents of Google Books settlement say the search giant will still have exclusive rights to digitize orphaned out-of-print works.
• Judge sets February hearing for new Google Books deal

Modern Warfare 2 tops entertainment industry, not just games

Call of Duty: Modern Warfare 2 was one of this year's most anticipated titles, but Activision figures now estimate that its launch was even bigger than expected.

Ballmer: Windows 7 selling like hotcakes

At Microsoft's shareholder meeting, the CEO says the OS has sold twice as fast in its early days as any prior version of Windows. He also takes a few shots at Apple.

Computer glitch slows U.S. air travel

A computer glitch causes flight delays and cancellations Thursday morning, but the FAA says that its main flight processing system is now back up and running.

Consumers to plug into home energy displays?

Dozens of companies are prepping tech to help consumers find ways to save energy, but it's hard to say which approach will stick.
• Photos: Home energy displays show you the juice
• California approves efficiency mandate for TVs

Also of note
•  IBM: Computing rivaling human brain may be ready by 2019
•  Paul Allen diagnosed with cancer
•  The 411 on early-termination fees (FAQ)
•  Al Gore: Our next power grid will be like the Net
•  Next year's Flip will do Wi-Fi

Cloud computing is luring more businesses with its promise of minimal maintenance and low costs. But are companies putting their data at risk?

A new, free report released Friday by the European Network and Information Security Agency (ENISA) outlines the benefits and potential pitfalls of cloud computing. Based on an ongoing survey, the 123-page report, "Cloud Computing: Benefits, Risks and Recommendations for Information Security" (PDF), also offers recommendations to businesses on how to minimize the risks of entrusing their data to a cloud provider.

The benefits of cloud computing as described by ENISA are clear. Business content and services are always available. Companies can reduce costs by not overspending on the capacity of their own data centers. They can also scale up or down, depending on the services they use, and pay for those services only as needed. Internal IT is freed up by not having to implement or maintain certain hardware or software.

As more businesses hop onto the cloud, IDC expects worldwide spending on cloud services to hit $17.4 billion, revving up to $44.2 billion by 2013.

But cloud computing poses certain key risks.

"The picture we got back from the survey was clear," Giles Hogben, editor of the ENISA report, said in a statement. "The business case for cloud computing is obvious--it's computing on tap, available instantly, commitment-free and on-demand. But the number one issue holding many people back is security--how can I know if it's safe to trust the cloud provider with my data and in some cases my entire business infrastructure?"

Though cloud-service providers promise 24-by-7 availability, their data centers can go down. Security is out of the hands of the customer, who must place trust in the service provider. Customers become dependent on a single provider and may face challenges if data and services need to be migrated to a different provider. By entrusting data to the cloud, companies could face risks and challenges from regulatory audits. Further, some cloud providers may not fully and properly delete data even if a customer requests it.

In its report, ENISA outlines measures companies can take when dealing with cloud-service providers.

Companies must perform risk assessments, comparing the potential risks of storing data in the cloud with keeping files in an internal data center. Companies must also compare different cloud providers to narrow the list and then obtain service-level assurances from selected providers. Further, customers should clearly specify which services and tasks will be handled by internal IT and which by the cloud provider.

The report includes a checklist and detailed questions that customers can use when shopping for a cloud provider.

With the right provider, data can be safe and secure in the cloud. In fact, security with a cloud provider can be even more robust, flexible, and quicker to implement than when done internally. ENISA Executive Director Udo Helmbrecht noted in a statement: "The scale and flexibility of cloud computing gives the providers a security edge. For example, providers can instantly call on extra defensive resources like filtering and re-routing. They can also roll out new security patches more efficiently and keep more comprehensive evidence for diagnostics."

Nokia said Friday that a streamlining effort could result in the elimination of as many as 330 positions from its research and development staff, or about 2 percent of its global R&D workforce.

The changes will likely hit up to 230 workers in the company's Oulu site in Finland and roughly 100 at its Copenhagen site. Nokia said it plans to offer voluntary severance packages to the affected workers and to find alternative jobs for as many people as possible.

The company currently employs more than 17,000 workers in its R&D business. It has 2,000 employees at the Oulu facility and 1,000 in Copenhagen.

Though Nokia still holds the top spot in the smartphone arena, its dominance has been eroded by competition from the likes of Apple and Research In Motion. A recent In-Stat report found that Nokia's share of the smartphone market had dropped to 35 percent in this year's second quarter compared with 50 percent in the prior year's quarter.

Another report from Strategy Analytics revealed that Apple had surpassed Nokia in cell phone profits during the third quarter, the first time that Nokia had fallen to second place.

Nokia's third-quarter results showed a net loss of $832 million, while sales dropped around 20 percent. Nokia Siemens, the network equipment maker run by Nokia and Siemens, has also been a drag on its owners, recently announcing its own layoffs and cost cuts as a result of its weak performance.

Google wants to catalyze the era of Web applications with its Chrome OS project, but Mozilla has no plans for its own browser-based operating system, at least for now.

"We're really focused on making the Web the right platform of whatever operating system one is using. That's a fair amount of work," Mozilla Foundation Chairman Mitchell Baker said. "I think we're going to continue to focus for quite awhile on the Web itself as a platform and the capabilities of the Web rather than build an operating system of our own and pull everybody into our world."

Baker shared the thoughts in an interview about the Mozilla Foundation's report of $79 million. The foundation isn't strapped for cash, but it is financially tiny compared to the three main rivals in the browser market today, Microsoft, Apple, and Google.

Microsoft was largely dormant when Firefox was getting its start five years ago, but the company is lighting a fire under its Internet Explorer developers for IE 9. Among the features the company touted are faster execution of Web-based JavaScript programs, better compliance with Web standards, and higher performance in general.

Internet Explorer remains the dominant browser in use today. Today, the elderly IE 6, dating from 2001, still is the most widely used version, and its widespread use is an anchor that keeps Web developers and therefore other browsers from advancing as fast as they might. So, unsurprisingly, Baker was comfortable with the prospect of a higher-powered IE being resurgent.

"If it could resurge enough to pull the hundreds of millions of people still using IE 6, we'd all be ecstatic," she said. "A lot of people are going to continue to use IE. They get it on their machine. If Microsoft makes that product more capable so the Web can move forward, there's good in that."

The Mozilla Foundation, of which Firefox developer Mozilla Corp. is a taxable subsidiary, gets the bulk of its revenue from Google through a search-ad deal that runs through 2011 at present. Search traffic that stems from Firefox's built-in search bar is set by default to go to Google, and a portion of the resulting Google search-ad revenue goes back to Mozilla.

Mozilla is looking to diversify its revenue sources, though, Baker said, and has taken some small steps.

"We did some small diversification in search, for example in Russia," using Google rival Yandex's services, she said. "We look at diversification, but we're not rushing into it."

And she's comfortable with today's funding situation because it doesn't force Mozilla to take Firefox in a direction it doesn't want to go.

"We have search in the product because we want it. We don't have any other discussions with Google about what the product is," she said. "The search and revenue relationship is completely distinct from the product development relationship."

Though Mozilla's revenue grew only at 5 percent from 2007 to 2008, compared to 12 percent the year before, Baker isn't concerned. "It matches our projections" of slow, steady growth, she said. "We're pretty much in line."

Digging into the financial statement, it should be noted that the foundation's $79 million in revenue is after a $7.8 million unrealized loss in the value of its investments. As the economy improves, it's possible those investments will recover some of their value.

The foundation is making more money than it loses. Expenses were $49 million for 2008, according to the financial statement.

"We have adequate resources to do what we have planned, plus save a little bit," Baker said. "Right now we're not bumping up against the ceiling. Our revenue is adequate to meet our needs. We try to be careful with money."

The Internal Revenue Service is scrutinizing Mozilla's corporate structure--a foundation with two taxable if not exactly for-profit subsidiaries. The foundation disclosed the scrutiny a year ago, and that investigation is continuing, Baker said.

"The IRS can be a very slow-moving organization. It's still an open discussion," she said, and the foundation is taking the matter seriously. "We don't have a clear idea what the IRS is thinking."

Two years ago, the Mozilla Foundation established its second taxable subsidiary, Mozilla Messaging, which focuses on the Thunderbird e-mail software and more recently on the Web-based Raindrop universal communications service. For now, that project gets its funding from the Firefox side of the house, but Baker plans to increase its financial focus once the near-final Thunderbird 3 is finished.

"The task now is to ship first Thunderbird 3. We expect to see that this year," Baker said. Mozilla overall is set up to be sustainable, not to be a money machine, but Mozilla Messaging will need to generate more revenue on its own eventually to help with that sustainability effort.

Advanced Micro Devices stock was upgraded Thursday by Broadpoint AmTech analyst Doug Freedman, citing a solid product road map and debt restructuring efforts.

AMD was trading above $7 midday on Thursday, high above the $3.50 (approximate) lows seen back in July of this year.

Freedman said in a research note Thursday that he is upgrading AMD to "buy" from "neutral" and raising the price target to $10 from $5.80.

"Positive events...lead us to believe that AMD's risk/reward is now compelling," he said. One of the biggest positives was AMD's move on Wednesday to pay off $1 billion in debt using part of its $1.25 billion settlement income from Intel and a new $500 million bond offering. "We believe AMD's debt of $3.7B will be reduced by 25 percent," Freedman said.

And Future "Fusion" chips point toward a more competitive AMD. Fusion silicon--which combines the main CPU processor with the graphics chip or GPU--is due in 2011. "We believe Fusion (CPU+GPU) will deliver discrete-like performance on an integrated chip," Freedman said, referring to high-performance standalone "discrete" graphics processors. "Fusion will likely be a low-cost product--targeting mainstream and lower-end," according to Freedman.

Chips that go into servers are also likely set for market share gains, Freedman said. "We estimate that server share could grow from ~8 percent currently, by our own forecast, to ~12 percent by FY10 year-end," he wrote. High-end "Maranello" chips boasting as many as 12 processing cores are due in the first half of next year and 16-core processors are coming in 2011.

Graphics chips that are compatible with Windows 7 DirectX 11 technology for accelerating games and general multimedia tasks are also expected to do well, such as the company's HD 5000 series of graphics chips.

The Mozilla Foundation's revenue grew 5 percent to $79 million in 2008, with its Firefox search-ad deal with Google still the biggest benefactor, the organization said Thursday.

The figure is notable for an open-source effort, but the growth tapered off significantly. For 2007, by comparison, the Mozilla Foundation reported $75 million in revenue, a 12 percent increase over 2006.

Mozilla Chairman Mitchell Baker revealed the latest Mozilla figures on her blog Thursday.

Update: for further details and commentary from Baker, check this follow-up interview.

Firefox has won over about a quarter of the world's users of Web browsers, taking most of that share from Microsoft's still dominant Internet Explorer. The browser faces new challenges, though, in the form of newcomer Google Chrome and Microsoft's resurgent effort to improve Internet Explorer. On Wednesday, Microsoft showed off some elements of the forthcoming IE 9, and Thursday, Google released the source code underlying its Chrome OS, a browser-based operating system for lower-end computers.

Google supplies "the bulk" of the Mozilla Foundation's revenue through a deal that currently lasts through 2011, the foundation said. Under that deal, people performing searches through Firefox using the default Google search engine see and sometimes click on search ads at Google; Google and Mozilla share the resulting revenue. In 2007, Google supplied 89 percent of Mozilla's revenue.

Google isn't the only revenue source, though. Here's how Mozilla described its sources in an FAQ:

"The majority of this revenue is generated from the search functionality in Mozilla Firefox from partners such as Google, Yahoo, Amazon, eBay, and others. Mozilla takes in additional revenue from donations, online affiliate programs, the Mozilla Store, and income on our invested assets. In 2008, we expanded our Firefox partnerships with new firms such as Yandex (Russia Search), Canonical (Ubuntu), and Nokia (Mobile).

With possible action by the Federal Trade Commission looming, an unidentified Dell executive is cited prominently in legal documents as a person who might exonerate Intel, or at least mitigate the severity of the charges leveled against it for alleged antitrust behavior. So, what is known about this Dell mystery man?

This week the Dell executive, referred to as "Mr. A," was cited throughout the European Union ombudsman's "decision" on on a complaint filed by Intel about the European Commission's ruling against the chipmaker. Ombudsman P. Nikiforos Diamandouros' November 18 decision found "maladministration" on the part of the Commission because of its failure to make a "proper note" of a meeting with Dell--represented most prominently by Mr. A in the the ombudsman's decision.

Diamandouros has been the The European Union's ombudsman since April of 2003.

Most importantly, Mr. A is brought up by Intel as a person who has made exculpatory statements--and therefore could refute allegations such as those made about Intel and Dell in New York Attorney General Andrew Cuomo's complaint against the chipmaker.

And who is Mr. A? He was "a senior Dell executive" and the person "responsible for Dell's relationship with Intel," according to the ombudsman's published statement.

What else is known about Mr. A? Intel asserts in its complaint to the Commission--which the ombudsman responded to in its decision--that "Mr. A's FTC [Federal Trade Commission] testimony exonerates Intel and contradicts the allegations contained in the statement of objections concerning Dell's relationship with Intel."

And Intel has had more to say about this person. "Mr. A again gave sworn testimony confirming that the key points made in his 2003 FTC testimony, to the effect that Dell did not have an exclusive relationship with Intel and that Intel did not 'threaten' or 'punish' Dell for considering a dual-source [Intel and AMD] strategy."

Also in the ombudsman's decision--which refers to Intel as the complainant: "It is clear from these events that the Commission sought to conceal and suppress exculpatory evidence. Also in the complainant's view, this misconduct (and the failure to make a complete note of the meeting which would have eliminated any debate as to what Mr. A said) constitutes a serious act of maladministration."

Intel spokesman Chuck Mulloy said Thursday that Intel continues to talk to the FTC. "Yes we are talking. We are continuing to answer their questions concerning our business practices and now we are also explaining the settlement we just completed with AMD [Advanced Micro Devices]," Mulloy said.

The Federal Aviation Administration says a glitch in its computer system that caused widespread flight cancellations and delays nationwide Thursday has been fixed.

The FAA confirmed to CBS News that its main flight processing system is now back up and running, CBS News correspondent Nancy Cordes reports.

The problem was with the FAA's system that collects airlines' flight plans. It was the second time in 15 months that a glitch in the flight plan system caused delays.

The agency still requires some time to reboot its residual systems, but FAA officials told Cordes that flights should get back to normal fairly quickly.

Read more of "Computer Glitch Slows U.S. Air Travel" at CBSNews.com.

Intel Labs Europe is joining a handful of French institutions to investigate large-scale computing challenges that face today's information technology industry.

The Exascale Computing Research Center will investigate machines that can perform 1,000 times more calculations than today's top supercomputers, Intel said, and the chipmaker is spending millions of dollars on the three-year partnership.

The effort also includes Commissariat a l'Energie Atomique, Grand Equipement National de Calcul Intensif, and the Universite de Versailles Saint-Quentin-en-Yvelines. Those organizations will jointly match Intel's investment, Intel said.

"France has taken a leading role in driving high-performance computing research in Europe. We chose to work with these three organizations because of their world-class software competency in exascale and high- performance computing," said Steve Pawlowski, general manager of the Intel Architecture Group's central architecture and planning, in a statement.

The move also raises the company's profile in a jurisdiction that's been tough on Intel. The chipmaker ended up on the losing end of a European Commission antitrust judgment, and is now appealing the resulting fine of 1.06 billion euros ($1.58 billion). Intel just settled a separate antitrust case brought by rival AMD.

Intel Labs Europe employs 900 researchers in Europe, the chipmaker said.