Windows 7 Upgrade Spat Could Have Been Avoided

The Windows 7 upgrade issue that's causing friction between Microsoft (NSDQ:MSFT) and some of its most fervent supporters highlights the need for a central repository for Microsoft software licensing policies. Or, at the very least, better communication from the software giant on a problem that's affecting many of its customers.

In the wake of Microsoft's Oct. 22 launch of Windows 7, many XP-using customers ran into problems trying to clean install Windows 7 using upgrade media. Microsoft permits customers to do this on PCs that have a previous version of Windows installed, but not on PCs with blank hard drives. Given the ubiquity of Windows, many customers that were legally entitled to use the Windows 7 upgrade were understandably frustrated when Windows 7 wouldn't activate.

On Microsoft's Small Business Community blog, which is run by Eric Ligman, global partner experience lead in Microsoft's Worldwide Partner Group, one commenter summed up the situation in particularly eloquent fashion.

"This is the sort of information that many people at Microsoft should know. It is the sort of information that should transcend departments and divisions. It is the sort of information that should be in published documents, with clear explanations of steps to take in the event that a legal upgrade technically fails," wrote commenter 'Timmy'.

"What will it take for someone at Microsoft to take this question by the horns and just plain answer it directly? By the way, this question has gone unanswered for the duration of the Vista Beta, the Vista Release, the Windows 7 Beta, and the Windows 7 Release," wrote 'Timmy.'

Microsoft still hasn't offered customers an explanation on how to work around this problem, even though doing so would have mitigated much of the anger that has arisen within the Windows user community and customer base. Ligman, for his part, has vowed to get an official answer from Microsoft on the issue.

Microsoft often says its main competition to Windows is pirated versions of Windows, so it makes sense that it wouldn't want to provide a roadmap for pirates by advocating workarounds. And the amount of money Microsoft stands to lose in this scenario isn't insignificant, given that Windows 7 Home Premium upgrade sells for $80 less than the full version, and the Windows 7 Professional and Ultimate upgrades are $100 less than full price.

"Sure, some people will indeed play games with the system, using cheaper upgrade media rather than full versions to install Windows 7 improperly," said Paul DeGroot, an analyst with Directions On Microsoft, Kirkland, Wash.

However, aside from Windows Product Activation, Microsoft builds very little technical enforcement of licensing into Windows. And it's worth noting that for Microsoft, having customers buy Windows 7 upgrades is a good thing. Microsoft has developed Windows 7 to allow it to run on older hardware, and the many discounts it's offering with Windows 7 shows its desire to get customers to upgrade older computers, even if it results in lower margins.

According to DeGroot, this was a major problem with Vista that Microsoft is looking to fix in Windows 7. "Vista couldn't run on older hardware, and that made it less of a financial success because Microsoft only got the revenue from new PC sales," he said.

Microsoft is plenty capable of developing a mechanism to make it possible for legitimate users to clean install Windows 7 upgrade media without opening the door to greater piracy, says Bob Nitrio, CEO of Ranvest Associates, an Orangevale, Calif.-based technology consultant. But because Microsoft hasn't listened to customers and partners on the Windows 7 upgrade issue, much of the criticism it's receiving is justified, he adds.

"At some point, Microsoft needs to start trusting its customers again instead of assuming that they're all criminals," Nitrio said.

T-Mobile says software error behind outage

T-Mobile said on Wednesday that a software glitch was to blame for a massive outage on Tuesday that left many customers unable to send or receive calls or text messages.

"After investigating the cause, we have determined that a back-end system software error had generated abnormal congestion on the network," T-Mobile said in a statement. "T-Mobile has since implemented additional measures to help prevent this from happening in the future."

The wireless service provider did not say which software caused the issue.

"We again apologize to those customers who were affected and may have been inconvenienced," T-Mobile said. I've also asked the carrier what, if any, compensation it plans to give those who were without service.

The service disruption began on Tuesday afternoon and lasted, for some, until late into the evening Pacific Time.

T-Mobile has stated that the outage affected about 5 percent of its users.

Web, cellphone users are not isolated from reality

It's easy – and tempting – to believe that cellphones and the Internet are making Americans more isolated as they filter out those around them and focus on lighted screens, distant Facebook friends and LOL conversations.

But a new survey finds that this may not be true.

In fact, Americans who use such technologies have larger and more diverse "core discussion networks" than those who don't – and their networks also appear to be more diverse.

Though the study from the Pew Internet & American Life Project finds evidence that using social networking sites such as Facebook and LinkedIn can indeed substitute for a measure of neighborhood involvement, Internet users in general are just as likely as others to visit with neighbors. Cellphone users, bloggers and those who use the Internet frequently at work are actually more likely to belong to a local volunteer group as well.

"It really adds a whole new social setting," says sociologist Keith Hampton of the University of Pennsylvania and one of the authors of the study.

But the survey also finds that although Facebook users know their neighbors as well as others, they're less likely to see them as companions or to rely on them for help in caring for themselves or a family member.

The survey is the first to examine how using cellphones and the Internet changes how people interact – and it suggests that Internet use doesn't keep people from public places such as parks, restaurants, libraries and cafes. Actually, the technology is associated with more widespread use of these places, though Hampton says it's unclear whether Internet use widens people's social circles or whether people with already-wide social circles simply tend to use the Internet more.

Either way, the findings may serve as a sort of salve to those who worry about growing social isolation in the USA. A widely read 2006 study by researchers at the University of Arizona and Duke University found that the proportion of Americans who have "no one with whom they discuss important matters" nearly tripled from 1985 to 2004. It also found that the average person's social network had shrunk by about one-third, from three people to two.

The Pew study, which posed the same questions, confirms the shrinking network but shows people who use cellphones and the Internet actually buck the trend.

For instance, respondents who have a cellphone have a "core discussion network" that is 12% bigger than those who don't. Those who use the Internet for instant messaging or to share photos have a network that's 9% bigger – and they're more likely to discuss important matters with people who aren't family.

The findings clearly stand in contrast to the notion that technology "might cause people to retreat from life," says Lee Rainie, who directs the Pew Internet project. Spending time with online social networks, he says, gives people "new powers to extend themselves and extend their interests."

Microsoft Refreshes MSN, Adds Social Networking Links

Microsoft (NSDQ:MSFT) is previewing a long-overdue makeover of its MSN portal, which is far less cluttered than its current AOL look-alike and which makes it a little bit easier to access social networking sites.

The preview of the new MSN portal shows considerably more white space than does the existing MSN portal, and appears to make it easier for users to navigate.

For instance, instead of being hit with a mess of uncategorized links on the top of the old MSN homepage, ranging from Airfares & Travel to Money to Yellow Pages, browsers of the new MSN will find the Bing search bar followed by six simple categories including "News," "Entertainment," "Sports," "Money," "Lifestyle," and "More."

The featured articles are also prominently displayed near the top of the page on the left, making them much easier to find than having to look past a cluttered navigation column that runs almost the length of the left side of the page with the old MSN.

The new MSN seems to be more social network-friendly. Microsoft has also added live links to let users connect to such Windows Live, Facebook, and Twitter with two clicks.

However, those links, which might be commonly accessed given the popularity of social networking, are actually on the right side of the home page and may not be as easy to find as some users might wish. That could be especially important to users of smaller notebook PCs or netbooks who much deal with relatively small displays.

Cuomo Hits Intel With Suit

Intel Corp. was slapped with new charges alleging it abused its dominance of the computer-chip market, this time from New York's attorney general, whose complaint includes a raft of revealing emails between some of the technology industry's most powerful executives.

The lawsuit alleges the chip giant threatened computer makers including Dell Inc., Hewlett-Packard Co. and International Business Machines Corp. and paid billions of dollars in kickbacks to stop them from using a competitor's chips. In one email, Intel Chief Executive Paul Otellini called Dell, which used Intel chips exclusively, "the best friend money can buy," according to the suit.

The antitrust complaint, filed in a Delaware federal court, adds to cases and investigations across several countries that accuse the Silicon Valley company of anticompetitive practices. Dell, H-P and IBM declined to comment on the complaint.

Though the charges are familiar, the latest complaint increases the pressure on Intel, which has already paid a $1.45 billion fine to antitrust authorities in Europe and faces an investigation by the U.S. Federal Trade Commission.

It also provides the fullest picture yet of the measures Intel, which for years has commanded 80% of the microprocessor market, allegedly used to keep rival Advanced Micro Devices Inc. from expanding its market share.

Intel, which is appealing the EU ruling, has denied the allegations. It says its practices have benefited consumers by bringing innovations at lower prices. Intel "will defend itself," said a spokesman. AMD said it welcomed the latest lawsuit and the details disclosed in it.

Attorney General Andrew Cuomo's complaint includes excerpts of emails between top Intel executives and leaders at its big partners, who discuss Intel's market power and fears of retaliation if they dealt with AMD. It also provides some of the first estimates for how much Intel allegedly paid in rebates and other incentives to dissuade PC makers from buying AMD chips.

For example, the complaint alleges that Dell received approximately $6 billion in rebates from Intel between February 2002 to January 2007, adding that in two quarters of 2006 the Intel payments exceeded Dell's net income. The Austin, Texas, company for much of the decade was the only major computer maker that purchased microprocessors only from Intel.

In one email exchange described in the suit, Dell Chairman Michael Dell complained to Mr. Otellini over the agreement to use only Intel chips. "We have lost the performance leadership and it's seriously impacting our business in several areas," Mr. Dell wrote in November 2005. Mr. Otellini wrote back that Intel had given more than $1 billion in rebates and payments to Dell, which Dell had deemed "more than sufficient" compensation.

In April 2006, after Dell informed Intel that it had decided to begin buying from AMD, the complaint states, then-Intel Chairman Craig Barrett said Intel should respond by cutting off payments and discounts to Dell.

"Not a time for weakness on our part," Mr. Barrett wrote in an email quoted in the complaint. "Stop writing checks immediately and put them back on list prices ASAP."

Following the change, rebates to Dell, which totaled about $800 million for February, March and April of 2006, shrank to $200 million from that November through January 2007, the complaint states.

Mr. Otellini and Mr. Barrett, who has retired from Intel, were not available for comment. A spokesman said Intel has evidence that answers issues raised by the emails, but it can't be released due to a protective order in an antitrust case by AMD.

Some observers found the timing of Mr. Cuomo's move surprising, especially since some lawyers expect the FTC to soon file its own suit The FTC declined to comment.

"It is highly unusual for a state attorney general to take on a national monopoly case before the Feds have acted," said John DeQ. Briggs, an antitrust expert at D.C. law firm Axinn, Veltrop & Harkrider LLP.

Benjamin Lawsky, a special assistant to Mr. Cuomo, said the prosecutor is acting to protect competition. "Of course, we look forward to continuing to partner with the federal government when appropriate," he added.

The case is one of a string of high-profile investigations launched by Mr. Cuomo, a Democrat who is expected to run for New York governor in 2010.

Mr. Cuomo described Intel's practices as harming consumers, companies and governments. He said Intel has "no laws of supply and demand," adding that it "ruled with an iron fist"

Intel argues that the rebates and other incentives targeted by regulators are lawful forms of price competition, based on the volume of chips customers purchase.

In the case of H-P, which was a regular AMD customer, the complaint states that Intel was determined to limit sales of AMD-based computers to corporate customers, a lucrative segment of the market. Internal H-P emails cited in the complaint say executives became worried that Intel could retaliate by reducing support for a chip line called Itanium that was crucial for some H-P computers.

Confronted with Intel threats and eager to retain rebate payments, the complaint alleges, H-P agreed to restrictions that include limiting global sales of AMD-based desktop PCs to business to no more than 5% of that business. One agreement between the companies, negotiated in 2004, contained incentives that H-P calculated was worth $182 million to the company, the complaint states.

IBM, which in 2003 agreed to use AMD chips in some server systems, was pressured by Intel not to extend its use of that technology, the complaint states. In April 2004, for example, Intel agreed to pay IBM $130 million not to launch a line of servers using AMD chips, the suit states.

In a statement, IBM said it "has cooperated with the requests for information from the government, and believes it has conducted its business appropriately.We have no comment on the allegations in the complaint."

Apple's App Store: 100,000 Apps, But Most Are Unused

This week, Apple is flexing to impress. The iPhone-maker officially announced its tightly controlled App Store has surpassed the 100,000 mark when it comes to available applications. A hundred thousand -- that's a lot of apps, especially compared to other platforms' far more limited offerings.

But, to revisit the age-old question, how much does size really matter? Does anyone actually need a selection of 100,000...of anything? In the case of the App Store, it appears that despite the impressive nature of its big and firm number, the way we use the catalog may count far more than any measurement.

[ Discover iPhone apps for business and IT pros the easy way: Use InfoWorld's business iPhone apps finder. | Get the InfoWorld editors' 28-page hands-on look at the new iPhone OS from the perspective of business and IT pros. ]

Apple App Store Stats

The sobering statistics come courtesy of AppsFire, an app tracking and sharing service that caters to iPhone customers. AppsFire analyzed the 100,000-plus apps in Apple's App Store to see how many were actively installed on users' devices. Its conclusion: not very many.

According to AppsFire's analysis, by the time you hit the 1000th app (as far as popularity), you're looking at only 1.76 percent of users with the program installed. Once you pass the 2000th program, the number of active installs is barely a blip on the radar.

Yep -- the overwhelming majority of apps are simply sitting unused.

App Store Comparisons

All right, time for a reality check: Does this finding take anything away from the App Store's success? Not in the least. Apple's managed to build up an extraordinary array of high-quality offerings, and that's something no raw number can assess. But does the finding take a bit of steam out of the company's size-centric marketing push? You'd better believe it.

Bear in mind the timing of all of this: On Friday, Verizon's Motorola Droid hits stores nationwide. The phone is already being hyped as one of the first serious iPhone contenders -- but, despite its standout features, the size of the Droid-connected Android Market has been widely cited as a key limiting feature. The Android Market's 10,000 apps, many have suggested, simply can't compete with the App Store's 100k-strong selection.

Seeing how few of the App Store's 100,000 apps are actually in use certainly brings that idea into question.

Now, there's still the notion of quality: Do the Android apps hold a torch to the iPhone's when it comes to what they offer and how well they perform? That's a subjective question you'll have to answer for yourself. When it comes to sheer numbers, though, you may want to think twice before letting an extra zero make up your mind.

JR Raphael writes geek humor at eSarcasm, home to more than 100,000 tech-related jokes. He has never once had success using that as a pickup line.

By JR Raphael | PC World