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QUOTE OF THE DAY:

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Microsoft, with its Windows Media Technologies, is making a come-from-behind effort in the Internet audio and video streaming market, running second to rival RealNetworks and its RealPlayer G2. Apple, with QuickTime, is third overall in the market, according to a recent report from Dataquest.

Source: http://www.techweb.com/wire/finance/story/INV19991220S0007

CyberSister’s Comment:

We've seen this one before! Technologies such as audio/video streaming, television and computer software/hardware are converging and Microsoft wants to be leading the way! So, they invest in smaller technology companies to keep up. It's interesting that CNN television also has an equity stake in this company. This is the kind of technology Microsoft and CNN need to become the Internet portal/entertainment unit of the future.

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FACTOID OF THE WEEK:

This is the CyberSister's favourite issue! A chance to review the top stories of 1999, see if our last year's predictions were anywhere close to the mark, and take a stroll down memory lane. So, here is our list of the top ten Internet stories of 1999:

1. Microsoft is a monopoly. No, it's not just us little computer companies whining, this is a "finding of fact" from U.S. District Judge Thomas Penfield Jackson. This is going to take some time to really shake out, but watch for a loosening of the hold Microsoft has on your operating system and choice of software.
2. The Internet truly goes mainstream - and everybody actually notices! (i.e. Jeff Bezo of Amazon.com appears on the cover of Time as "Person of the Year")
3. MP3 (an audio compression file format) opens the gates toward mainstream digital music. Large music and recording companies struggle to get a handle on how this is going to change the way music is delivered to the general public. This leads to the huge IPO for MP3.com. Stay tuned on this one.
4. Gaping Security Holes made Public - RealNetworks, Hotmail, Microsoft among the companies caught with their pants (or skirts J ) down when it is revealed that their services have huge security holes that allow unauthorized access to client information. Some companies are also caught collecting private information about their clients without permission!
5. Television gets Smart - 1999 was a significant year for interactive television and "WebTV". Ok, there's way too many to list here, but it was the year of big buck initial public offerings, major mergers and technology introductions. Companies like Motorola, Sony, Philips, America Online and satellite television provider DirecTV, as well as content media companies such as NBC, CBS and Disney are hooking up with software/Internet companies to try and grab a stake in the interactive television market.
6. Palm Pilot thrives - the handheld mania is well underway. Handheld wireless Internet devices, MP3 players were introduced to the market and took off.
7. Online E-tailing continues to grow. Ok, so this has been going on for a few years now, so why does it keep making the top ten? Because it is remarkable growth! Although not all the data is in yet, indications are that this holiday season hit a new record for online purchases - early estimates are that it is up between 40-50% from last year.
8. XML as a commercial technology. XML is "Extensible Markup Language" - it is an add-on to basic HTML that allows web pages to deliver structured data and communicate better with databases. In 1999, software developers adapted it as a standard, and started to promote their services and software as "XML compliant". Could be a major advance for the exchange of data on the Internet. (interested in this technology? I (Diane) just completed a major research project about this - contact me at dcurrie@digitalripple.com if you want to know more).
9. Personal Computer prices take a nosedive. 1999 was a year when it became a lot cheaper to buy a decent PC. In fact some companies even offered PC's for free if you signed up for a bunch of Net Services and were willing to look at advertising. Traditional PC makers such as IBM and Compaq announced major layoffs and re-structuring.
10. "Upstart" Linux grabs Headlines. Partly in response to the antitrust trial, this was definitely the year of the "operating system wars" - with Linux companies going for big IPO's and grabbing headlines at Comdex. Linux is a UNIX based operating system that is starting to make in-roads as a viable competitor to Windows systems.

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TIP:

"Last Minute Y2K Tips"

Ok, so this is really coming down to the wire, and some of our international readers may already be in the new millenium! However, for those of you who are thinking "hmm… should I do anything about this bug?"….. here are some last minute tips!

1. It's too late to do anything major, so just shut down your computer, relax and have a good time at a New Year's Party!
2. Sometime in the few days after New Year's start up your computer, download and update all virus fixes from your virus protection software company (e.g. Mcaffee, Symantec, etc…) Do this before doing any other web surfing or emailing. (there are likely to be some "New Year's" viruses or hoaxes, so do this first). The sites may be very busy, so keep trying.
3. If you don't have virus protection software, now's a good time to get some!!! Don't spend Y2K unprotected. It's almost guaranteed you'll be sorry if you don't.
4. Make sure you have all important data files backed up on a removable device (i.e. not on your own hard drive, on a CD or zip drive, or remote secure drive).

CyberSister's Comment:

http://news.cnet.com/news/0-1009-201-1510834-0.html?tag=st.ne.ron.lthd.1009-200-1510834

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BIZ SITES OF THE WEEK:

1. Want to try an offsite backup service? Try :
   http://www.backup.com/
2. If you are doing last minute backups, there is a free trial software for backups available at:

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TERM OF THE DAY:

"Internet Appliance"

A device specialized for accessing e-mail and/or the Web. It either plugs into a standard telephone jack or has a wireless connection to the Internet. Internet TV services, such as WebTV, are designed for home use, and network computers (NCs) are designed for business use.

Source: http://www.techweb.com/

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Ripple Effect "Rock"

What's a Ripple Effect Rock? Well, think of a rock thrown in a lake, and how the water ripples outward. This section of the newsletter covers developments and technologies that we think might soon cause a "ripple effect" in business or society.

Ripple Rock for December 31, 1999:

1. Since Y2K bug is going to be relatively benign (at least compared to the doomsayers of '99), companies will relax a bit and start spending on upgrading their systems and software. I think it will be a real boom year for technology in general and especially Internet and ecommerce companies.
   
2. It'll be the year of the ASP (application service provider) - of course people won't start to notice this until the end of the year or the beginning of the next year. (Small/med sized businesses will start to run their applications remotely via ASPs in a big way).
3. Watch for XML to make headway as a business communications standards. True web compliant, auditable, secure business forms on the Net will become standard for large forms users such as health care, insurance and government.
4. Even more money will be made by Internet startups, large scale mergers and buyouts of E-commerce companies. (this one is a no-brainer, I'm only saying that analysts who warn of a slow-down or who think the day s of the big bucks Internet IPO's and stock plays are over, are, in my opinion, wrong. There's more to come.)
5. With all the talk about technologies converging (satellite, audio/radio, TV, etc…) the one major technology that's been relatively slow to converge is the plain old telephone system (POTS). 2000 may be the year that phone calls over the web starts to become popular. Web telephony may be the surprise technology of 2000 and 2001.
6. "Bots" and personalization trends continue. I think they'll be a few real hits in this area - some startups that offer shopping bots or recommendation services (bottomdollar.com, auctionwatch.com) are going to take off. "Bots" were covered in our Nov 12 /99 issue.
7. Europe! This is the year that European Internet access, companies and online services is going to reach a critical mass and close the gap between US and Europe in terms of Internet. 1999 was the introduction of the euro - creating a powerful single market and an economy of scale to compete with the United States. Expectations are that European Internet access will triple over the next few years. (Source: http://www.redherring.com/)
8. Passwords may start to become obsolete. How? Well, I predict we'll start to see the practical applications of bio-security technology that scans fingerprints, retina patterns and voice recognition. You won't have to remember a password, the computer will be able to recognize you! (Want an example? Check out this article - http://news.cnet.com/news/0-1006-200-1510976.html?tag=st.ne.ron.lthd.1006-200-1510976
9. E-Commerce lawsuits - more of them, nastier, bigger and stupider. Yes, it's not going to stop, e-squatters who grab domain names, people who register similar sounding names or the same names, but different country domain are going to continue to make news and cause lawsuits. It's a new business world, so there's bound to be new legal challenges. The concept of "intellectual property" and "copyright" will be challenged, expanded and re-thought through lawsuits and opportunistic cyber-squatters (or freedom fighters depending on your point of view J ).
10. It's not about being wired. It's about being wireless. Connectivity will grow as usual, in massive amounts, by whatever means including wireless, cable, and fiber optic. We will jump to wireless, ubiquitous connections. The new century is post-complicated connections and desktop boxes - it's post-wires, post-computers, post-keyboards, post-reboot and post Microsoft domination. It's going to be a new wireless world out there.

CyberSister's comment:

If you have any comments about our predictions - let me know (dcurrie@digitalripple.com). The CyberSisters are researchers and analysts in the E-commerce/Internet field, so if we can be of assistance to you in figuring out where you or your company needs to go in this area, please contact us.

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That's it for now! Happy New Year from the CyberSisters!

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"Exploring the Ripple Effect of Digital Technology"