Windows 7 is getting a lot of good buzz.

Apple's Problem
Apple PCs (and, yes, Macs are "PCs"; look up the term and consider the fact that Apple got you to think Macs weren't PCs -- that's marketing) have gained a lot of market share recently, largely from two things: the perception that Vista sucks; and Apple's ability to manipulate the perceptions of both Microsoft's and its own offerings. However, Windows 7 is getting a lot of good buzz. In fact, among the influencers I follow, many who had gone to Leopard have now moved back to Windows 7 since getting access to the Windows 7 RC (release candidate) or RTM (release to manufacturers). On top of that, Jobs and Apple know, thanks to seeing Microsoft's current advertising campaign, that Microsoft is capable of executing at Apple's level now. The launch has more Apple-targeted products -- all-in-ones and premium notebooks -- than have ever existed in the market.
To Apple, this likely looks like a tsunami threatening not only its anticipated growth but also its ability to hold onto recently acquired customers who haven't been aboard long enough -- and are likely struggling with the initial incompatibilities -- to stay, in the face of what could be an impressive wave.
Microsoft's Exposure
As good as Hall and her team are, they don't run Microsoft, and they don't even run Windows. And Microsoft, as a company, doesn't really understand marketing.
To give you an idea of how this is ingrained in Microsoft: At an analyst event last week, a story was told of a recent meeting with Bill Gates where he was asked about the Mac vs. PC Apple ads and went off on how they were based on a pack of lies and exaggerations. Engineers are like that; they don't get that ads aren't based on reality -- they are designed to change the perception of something.
Look back at Apple's original "1984" ad, which is widely considered one of the best ads ever created. At the time, IBM (NYSE: IBM) was the most respected and loved company in the world. With one amazing ad, Apple repositioned it as a despotic, evil, excessively controlling firm -- without even saying its name. Five years later, IBM took a nosedive, and that ad was a surprisingly big contributor to its downfall (I wrote one of the post mortems back then).
Apple's Reality-Distortion Field
Snow Leopard, if you think about it, is what Microsoft would call a "service pack" (no major changes, just minor tweaks) and at Microsoft, service packs are free.
In addition, Apple is not a software company -- it is a vertically integrated hardware company. It could give its OS away for free -- as IBM used to do -- without much trouble, because it lives off hardware revenue. (What does an iPhone or iPod OS cost, for instance?)
Apple is effectively charging US$29 for something Microsoft typically gives away for free -- and it does give away for free on other products -- in a way that makes Microsoft look like the one overcharging.
That's marketing.
Apple's Legendary Head Fake
Microsoft made a critical mistake, for while it actually had its product ready before Apple did, Microsoft delayed its release until late October -- two months later than the ideal launch date for a perfect holiday season.
What Apple has pulled off will likely go down in history as one of the greatest head fakes in history (I'm borrowing a term that Michael Gartenberg used to describe this). Apple initially signaled a launch that would precede Microsoft's by 30 days, knowing that Microsoft would move aggressively to roll out its own campaign early to offset Apple's timing advantage. Then, last week, Apple announced it would launch on Friday, catching Microsoft unprepared and with insufficient time to move media buys and shift the campaign yet again.
Wrapping Up: Judo Marketing
Apple is doing some of the best work it has ever done -- this new ad is classic; even the use of a "Seinfeld" actor Patrick Warburton is top art -- and that's saying a lot. Microsoft has fielded the best marketing team, product, and vendor-coordinated launch it has had since Brad Silverberg and Brad Chase launched Windows 95 and nearly snuffed out Apple. But Apple didn't have Steve Jobs back then.
Jobs is turning Microsoft's size and engineering focus against it, and by so doing, it's unraveling much of Windows marketing team's work. This is a "come to Jesus" for Microsoft in that it has to decide if it really wants to fight at Apple's level or, as is often the case with big firms, start working on the list of ways it can say "Apple doesn't fight fairly" to explain why it bled shares like a stuck pig.

European regulators are also expected to review the deal

As the U.S. Justice Department reviews the proposed partnership, approval figures to hinge on this question: Will the online ad market be healthier if Google's dominance is challenged by a single, more muscular rival instead of two scrawnier foes?
The first step toward getting an answer came this month when Microsoft and Yahoo filed paperwork with federal regulators to comply with the Hart-Scott-Rodino Act, an antitrust law governing mergers and alliances between competitors. The Justice Department has until early September to approve the agreement or -- as is likely in this case -- request additional information.
European regulators are also expected to review the deal. Microsoft and Yahoo are bracing for the probes to extend into early next year, and the outcome isGoogle Tried
Just nine months ago, Google abandoned its own proposed partnership with Yahoo to avoid a showdown with the government, which had concluded that Google was already too powerful in the lucrative market for selling ads alongside search results.
Google had hoped to extend its reach even further by selling ads next to some of Yahoo's search results, and in the process, keep Yahoo out of Microsoft's clutches. Microsoft aggressively lobbied against the partnership.
With the Google-Yahoo inquiry behind them, U.S. antitrust regulators are likely to enter this examination with a clearer definition of the Internet search landscape and a better understanding of how it affects the steadily growing online advertising market.
Justice Department spokesperson Gina Talamona would not comment on the antitrust review, whose existence was confirmed by Microsoft and Yahoo.
Microsoft is counting on the Yahoo partnership to close the wide gap separating the software maker from Google in search. Under the 10-year agreement announced last month, Microsoft's Bing search engine would process all search requests and steer search-related ads on Yahoo.
Analysts believe the move will free Yahoo to phase out of the search business so it can focus on other products. Yahoo would keep 88 percent of advertising revenue generated by searches on its site for the first five years of the deal, and as much as 93 percent in the final five years.
2+3 Does Not Equal 1+2
The Microsoft-Yahoo alliance may stand a better chance of winning antitrust approval than the Google-Yahoo pact because it would combine the second and third players in the search market instead of the top two, said Melissa Maxman, head of the antitrust practice group at Baker & Hostetler. In fact, a combination of Microsoft and Yahoo would still lag far behind Google.
Google handled 64.7 percent of all U.S. Web searches in July, while Yahoo processed 19.3 percent and Microsoft 8.9 percent, according to comScore.
The lopsided competition means neither Yahoo nor Microsoft has a large enough audience on its own to lure a significant amount of search advertising dollars away from Google, argues Microsoft General Counsel Brad Smith.
"Advertisers want scale," Smith said in an interview, "so we need to increase our scale to offer something compelling to advertisers."
Already, one large group of advertisers that opposed the Google deal is supporting the Microsoft marriage.
Last year, the Association of National Advertisers feared Google would gain too much pricing leverage over advertisers through a Yahoo alliance. However, Microsoft still won't be in the driver's seat if it teams with Yahoo, said Bob Liodice, president of the trade group. Its members include such big marketers as Procter & Gamble, Johnson & Johnson (NYSE: JNJ) and General Motors (NYSE: GM) .
"This is a whole different ball game," Liodice said. "We are not concerned about monopolization of the market as a result of two weaker competitors coming together. We would still have a very competitive marketplace."
A Matter of Survival
Maxman said regulators will have to consider another factor as well: Yahoo may need Microsoft to survive. Although it remains profitable, Yahoo might not be able to afford to keep spending so much money on search -- where it has been losing ground to Google for years -- while its hold on its audience is threatened by rapidly growing Internet hubs such as Facebook and Twitter .
Nevertheless, Maxman said, antitrust regulators could still conclude that Microsoft and Yahoo don't absolutely need each other to compete effectively with Google. Microsoft has deep pockets and plenty of brainpower, and while Yahoo's profits have been slipping for the past three years, the company is now run by a chief executive, Carol Bartz, who has been trying to instill more discipline and focus during the first seven months of her tenure.
"There is no reason that with the right management and right strategy that it can't remain a viable third alternative in the search market," said Matthew Cantor, a New York attorney specializing in antitrust law.
Antitrust regulators generally frown on deals that create duopolies, unless one of the players can show it needs to bow out of a cutthroat competition to stay alive, Cantor said.
"The Justice Department's goal is to prevent the market from becoming too concentrated," Maxman said. far from certain.

Book Scanning Project

Book Scanning Project
The saga started some three years ago when the Association of American Publishers and the Authors Guild filed a lawsuit against Google to shut down its book-scanning project a-- or at least get compensation for copyright holders.
Last October, Google reached a US$45 million settlement agreement with the two groups in which it would establish a database through which authors may register works, approve the license of the works through Google, and collect royalties.
That settlement, however, was somewhat controversial; one criticism was that the plaintiffs in the case represented only some of the authors of works that Google would eventually publish in its Book Search project.
Other criticisms focused on the supposed monopoly Google would have over the online database of books. It was likely this issue that prompted the government to take a look at the agreement.
Earlier this year, the Department of Justice alerted the parties that it would be investing the agreement, which is still pending in the court.
Striking a Nerve
Parties to the agreement have defended the deal they struck.A coalition of firms that oppose a settlement reached last year between Google (Nasdaq: GOOG) and some representatives of the publishing industry over its Google Books project is growing. New members now reportedly include a troika of Web giants: Amazon (Nasdaq: AMZN) , Microsoft (Nasdaq: MSFT) and Yahoo (Nasdaq: YHOO) .
The coalition, called the "Open Book Alliance," is backed by groups opposing the court settlement that Google reached last October with the Association of American Publishers and the Authors Guild. Other groups include Internet Archive and Consumer Watchdog.
The members of Open Book Alliance will be formally disclosed over the next couple of weeks, Peter Brantley, a director at the Internet Archive, has told reporters. Brantley did not return a call to the E-Commerce Times.
If the reports are accurate, it would represent significantly more pushback against Google, which may have thought the major challenges to its goal of scanning and placing online millions of books from library collections -- many of which are still under copyright -- ended when it settled a suit with the two (then) main antagonists to its project.
"We believe the settlement has enormous benefits for publishers, scholars, researchers and the general public," Association of American Publishers spokesperson Judy Platt told the E-Commerce Times. "It'll give access to published works that, right now, researchers can only dream about."
Advocates of the agreement -- including Google itself -- say the Open Book Alliance is merely a group of competitors worried that a savvy tech company is getting too far ahead.
The settlement is injecting more competition into the digital books space, which is why Amazon, Microsoft and Yahoo are fighting against it, said Gabriel Stricker, a Google spokesperson.
"Ask yourself, who is opposing the settlement?" Platt said. "These are all competitors of Google, which did what they didn't do and negotiated an agreement with us -- an agreement that is not exclusive, I might add."
Fight Over Out-of-Print Books
It is interesting that such a fuss would be kicked up over an agreement that largely covers books that have been out of general circulation for some time, Eric J. Karson, associate professor of marketing with Villanova School of Business, told the E-Commerce Times.
"Most of what Google is digitizing now is out of print and inaccessible to most people -- not to mention, off their radar. Funny that now there is a fight over doing it," he said. The sad part is that no one even knows whether there is any positive revenue associated with these "long tail" types of publications, he added.
To be sure, Google is not approaching this endeavor from an entirely altruistic standpoint, Karson pointed out. "I believe competition is always good, but might it be more important to broaden the access to all work? Is Google doing this because they think they can profit from it, or because they can? To some extent, I think it is the latter."
A collective might be one possible happy compromise, Karson said. "These digital rights -- and potential but unlikely profits -- can be shared to further the goal of universal access to published works," he concluded.

"It could represent a solid threat to LendingTree

Mortech Injunction
LendingTree, a unit of, aaannounced the lawsuit on Wednesday, a day after it was fDo you have a video that has the potential to really go viral, like the wedding entrance dance or David after the dentist? Post it on YouTube -- not only for the notoriety, but also for the cold hard cash. At least that is the offer Google (Nasdaq: GOOG) , YouTube's corporate parent, is extending to users.
The company is expanding its revenue-sharing YouTube Partnership program to include individual popular videos, according to a blog posting by Product Manager Shenaz Zack.
The partnership program, which Google launched in December 2007, initially focused on prolific users whose videos would regularly reach a wide audience. Google would occasionally extend the program to include one-off videos that took off on the site -- such as Otters holding hands -- which "helped many people earn thousands of dollars a month," Zack wroteiled in U.S. District Court in Charlotte, N.C., where the company is based.
The lawsuit seeks an injunction against a company called "Mortech" which helps automate pricing by lenders who are offering loans. The lawsuit says Mortech works for lenders, not for LendingTree. However, LendingTree claims Mortech signed an agreement limiting its ability to make pricing searches available to other online loan aggregators. LendingTree claims Mortech has broken that agreement by giving data related to mortgage offers to Google in connection with Google's testing.
"In the course of its collaboration with GooOther Experiments
Google issued a written statement Wednesday saying it is "working on a small ad unit test" involving a limited number of mortgage-related searches.
"We have a number of experiments going on at any one time, but we don't speculate on future product development," the company said.
Google has made several moves that lead it away from its core business of selling ads alongside Internet search results. Last month it altered its popular Google Maps page to highlight its real estate search tools.
Other experiments have included an operating system for mobile devices, and Google Voice, which gives people an additional phone number that's not tied to any one phone line. Earlier this year it unveiled a PowerMeter that homeowners can use to track energy use.
A Google move into the lending referral business would be one more step away from its core business, said Rob Enderle, an analyst for the Enderle Group.
"It could represent a solid threat to LendingTree, and a distraction for Google," Enderle said. gle, Mortech will inevitably disclose the confidential, proprietary, and secret information that it has about LendingTree," LendingTree claims in the court papers.

In the business intelligence space

"TInvest Now
Hultgren advises companies to consider investing in business intelligence solutions now, even if they are working under tight budgets. Prices for services are currently very competitive, making the present period an especially good time to invest in BI. "There are lower prices for sure," he observed.Operations and Strategy
In the business intelligence space, there is a growing awareness that operations and strategy are two separate areas. Strategy aligned management will be a growing movement that will bring clarity to people wrestling with the two issues, in Barberg's estimation.
"It's starting to grow into separate but complementary disciplines," Barberg observed. Operations and strategy are distinct areas, but they work well together, he said.
Operations and strategy are two separate components and recognition of that will increase, Hardin concurred. "That's a useful distinction," he noted.
The strategy component is growing, Hardin added. Operations deals with what individual customers want. However, Hardin sees more companies using data to help make decisions in the boardroom. Now, the economy drives people to look at data to make strategic decisions.
When he lays out architecture for business intelligence systems, Hultgren splits operations and strategic components at a logical level where there is a need for separate components. The two different components impact the capabilities of the architecture and the technical aspect, Hultgren said. From his point of view, the operations and strategic dichotomy is a technical concern rather than something that impacts business requirements.
Hultgren also points out that the enterprise-wide view is being taken into consideration. Companies now focus more on the total cost of ownership as they realize that business intelligence is an ongoing program to invest in. They are seeking to lower costs.
Investing in business intelligence is important for a company now more than ever, agreed Bill Barberg, president of Insightformation and an expert in Balanced Scorecard methodology. Sound business intelligence helps companies make fact-based decisions as they try to navigate in today's stormy economy, he told CRM Buyer. "Business intelligence can help companies make much better decisions," he said.
Rising Field
Companies are beginning to recognize this, and business intelligence is a rising field. Dr. J. Michael Hardin, senior associate dean at Culverhouse College of Commerce and Business Administration, told CRM Buyer that he has noticed increased interest from companies in recruiting students with business intelligence expertise. "I've had quite a few phone calls from companies wanting to hire students," Hardin said.
This is due to rise in demand from companies searching for a smart way to leverage their dollars and to guide their strategy , he said. They want a competitive edge during the recession, Hardin remarked, adding that he sees a higher demand for data-mining people and graduates with knowledge of statistics.
Hardin recommends hiring candidates with a good business background, sharp analytical skills, and an understanding of why business intelligence is important to a company. Future business intelligence professionals should also develop these qualifications. "Learn how to think with data," Hardin advised.
Business intelligence Invest Now
Hultgren advises companies to consider investing in business intelligence solutions now, even if they are working under tight budgets. Prices for services are currently very competitive, making the present period an especially good time to invest in BI. "There are lower prices for sure," he observed.
Investing in business intelligence is important for a company now more than ever, agreed Bill Barberg, president of Insightformation and an expert in Balanced Scorecard methodology. Sound business intelligence helps companies make fact-based decisions as they try to navigate in today's stormy economy, he told CRM Buyer. "Business intelligence can help companies make much better decisions," he said.
Rising Field
Companies are beginning to recognize this, and business intelligence is a rising field. Dr. J. Michael Hardin, senior associate dean at Culverhouse College of Commerce and Business Administration, told CRM Buyer that he has noticed increased interest from companies in recruiting students with business intelligence expertise. "I've had quite a few phone calls from companies wanting to hire students," Hardin said.
This is due to rise in demand from companies searching for a smart way to leverage their dollars and to guide their strategy , he said. They want a competitive edge during the recession, Hardin remarked, adding that he sees a higher demand for data-mining people and graduates with knowledge of statistics.
Hardin recommends hiring candidates with a good business background, sharp analytical skills, and an understanding of why business intelligence is important to a company. Future business intelligence professionals should also develop these qualifications. "Learn how to think with data," Hardin advised.
Business intelligence has matured as a field, Barberg added. The experts in the field are seasoned professionals and know how to avoid mistakes. The knowledge these experts offer is just as valuable a resource as business intelligence systems, Barberg pointed out.
"The people are as important as the tools," Barberg explainedhas matured as a field, Barberg added. The experts in the field are seasoned professionals and know how to avoid mistakes. The knowledge these experts offer is just as valuable a resource as business intelligence systems, Barberg pointed out.
he people are as important as the tools," Barberg explained

In 2004, alleging that Dish infringed

Wednesday sued AT&T (NYSE: T) and Verizon Communications for infringing its patents, including one covering the ability to pause and rewind live TV.
"There are multichannel operators who compete with us through the unauthorized use of our intellectual property," said TiVo CEO Tom Rogers, in a conference call with analysts.
He added that while there were talks, "business agreements have not been reached."
AT&T declined to comment.
Verizon said it hasn't seen the lawsuit yet and can't comment.
Setback in Dish Case
Separately, TiVo received a setback Wednesday in a similar patent lawsuit against Dish Network and sister firm EchoStar (Nasdaq: SATS) .
The U.S. Patent and Trademark Office ruled that the re-examination of TiVo's patent that's the subject of litigation may continue.
TiVo had asked the agency to vacate Dish's request to look anew at the patents.
Wrangling Over Workaround
TiVo sued Dish in 2004, alleging that Dish infringed on its DVR technology. Dish lost.
While the case was on appeal, Dish designed a modified software that it downloaded to customers' DVRs.
However, TiVo said the workaround software still infringed on its patent and asked the district court for a permanent injunction.

Xbox 360 Pro -- with a 60 GB hard drive

Back to school time is upon us, but it's not just students who will soon be facing homework. Thanks to Thursday's announcement that Microsoft (Nasdaq: MSFT) is cutting the price of its high-end Xbox 360 Elite video game console from US$399 to $299 -- matching that of Sony's (NYSE: SNE) new PlayStation 3 Slim -- consumers will have to study up on which console now better fits their affordable entertainment needs in a down economy.
"It's never been a better time to be a gamer," gaming guide author and consultant David Hodgson told the E-Commerce Times. "I think you're finally seeing a price point that is going to attract a huge mass-market buy. I think you've got the battle lines drawn. But it's going to be a tricky decision on which console to buy."
Microsoft clouded that decision-making process further by trimming the price of the Xbox 360 Pro -- with a 60 GB hard drive -- from $299 to $249, the same price as Nintendo's best-selling Wii console. Microsoft will sell the Pro while supplies last and then will discontinue the model. There are no changes to the cheapest Xbox 360, the Arcade; it remains at $199.
The move confirms reports on some gaming blogs of fliers advertising weekend price cuts coming for the Elite.
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New Price Points, New Decisions
Consumer decisions on video game console purchases may now be guided by what else the systems do besides play games, Hodgson said. "People want to be more encompassing with their media," he said. "I think you've got benefits and you've got problems with both systems. But now there's more of a reason to pick up either one."
Microsoft has boosted its Xbox Live service with enhanced Netflix (Nasdaq: NFLX) movie streaming. Xbox Live also now offers full downloads of new games, necessitating for some a fat 120 GB hard drive like that in the Elite.
Sony's PS3 is also a Blu-ray DVD player, and while that hasn't helped much with sales so far, "it's been reviewed as one of the best Blu-ray players on the market. There's no reason to buy a standalone player when you can now buy a PlayStation 3. The only thing slightly annoying is a remote, or a lack of one," Hodgson said.
The PS3 has WiFi built in; Xbox 360s require an add-on, sold seperately. The PS3 is a quieter machine; the Xbox 360's loud fan "is okay if you're playing 'Call of Duty' and explosions are rocking the room, but if you're watching the subtle part of a movie, you're taken out of that experience."
Speaking of Games ...
The software coming for both PlayStation 3 Slims and Xbox 360 Elites isn't likely to help consumers make up their minds. Both Sony and Microsoft have strong titles coming out in the fourth quarter and beyond, including "Halo 3 ODST," "The Beatles -- Rock Band," a new "Uncharted," and another sequel to "Fallout." Some titles will be exclusive to either machine, but some will be available for both systems.
Will Nintendo follow suit by cutting the price of its $249 Wii? Not likely, said Hodgson. "The Wii has always been a different type of console. If Nintendo cared about going head-to-head, they would have put high-definition capability in if they thought they needed it. It's less bleeding-edge (technology), but more mass-market. Until you see sales decline to a point where it's a massive, precipitous drop, they're not going to touch the price point.
"Until you see motion controllers from the other two (Xbox 360 and PS3), I wouldn't be worried if I were in Nintendo's company," Hodgson said. "No other system allows you to wave a wand at the screen without a cable attached."