Battle of the software giants

Microsoft chairman, Bill Gates, is throwing one of the world’s biggest parties. The most famous software company in the world was founded in 1975 in Albuquerque, New Mexico. In 1986, it moved its HQ to Redmond in Washington. And now, it is celebrating its 35th birthday! We saw the release of Vista, a more secure version of Windows, as well as updated of the Office suite, which included Word and Excel. However, after years of dominating the software market, is the future as bright as the company would have us believe?

Competition is stronger than ever. Many users are changing their browsers – Mozilla Firefox is hailed as faster and more secure than Internet Explorer. Viruses are everywhere, and Microsoft now spends over 30% of its research and development budget on security issues. Skype’s software for free internet telephony has been successful – taking business away from Microsoft’s MSN messenger service. Skype have now attracted a takeover offer from e-Bay, the Internet auction site. Rival Apple’s iPod media player has damaged Microsoft’s plans for growing into the digital music world. Another competitor, Linux, produces ‘open source’ software, which its supporters argue is better, cheaper and more reliable than Microsoft’s products.

On the one hand Bill Gates describes an exciting future where different types of software products ‘converge’ so your digital world is with you everywhere – in the office, at home and on the road. Microsoft could be all around you! CEO Steve Ballmer talks about “winning” the Web, meaning beating Google and Yahoo! and other companies which have a core base on the Internet. On the other hand, critics paint a picture of slow product development, slow growth, pointing out that the launch of Longhorn, the successor to Windows XP, was delayed several times and then this product was renamed. So, will Microsoft continue to dominate the world of computers? Maybe its very size makes it more difficult to compete in the fast-moving technology market, with smaller companies driving innovation forward.

ASWER THE QUESTIONS: 1. What software do you use at work/at home/for study? 2. What kind of problems have you had recently, e.g. viruses? 3. Do you agree with Bill Gates that new products will ‘converge’? Give examples. 4. Do you think that Microsoft will continue to dominate the software market? 5. Do you think one company will ‘dominate the web’? If so, which one and why? 6. What Internet browsers do you know? 7. What are their advantages/disadvantages over others? 8. What do you think about Linux? 9. What are its advantages/disadvantages over Windows XP/ Vista? 10. Do you know other “open source” software?

Exercise 5. Write an annotation to this text.

Sony’s new e-book Reader

Sales of e-books are growing. However, sales of e-books make up just a tiny per cent of the total book market. Sony want to change that. This month, the company launches its new reader in the US. It is about the size of a paperback book, 175.6 mm long, and 126.6 mm wide. The e-book Reader is portable, weighing just 250 grammes. The device uses E-ink and according to the manufacturer, offers a reading experience which is similar to reading on paper. The Reader recognises different file formats such as pdfs, and allows users to read blogs and play certain MP3 music files.

Is this really an innovative product? There have been several attempts by different companies to make e-books popular, and none have really been successful. In 2004 Sony launched a similar version in Japan. It failed. One reason was the high price. The big difference this time around is the number of e-books which have been made available to read. Sony has done deals with major publishers such as Penguin and HarperCollins to sell digital e-books via its Connect™ online store.

Is Sony attempting to follow the model of Apple’s iTunes by making thousands of books (that publishers have translated into Sony’s format) available through downloading? However, there are big differences between storing songs and books. Usually, we only read one book at any given time. Why would anyone wish to carry around the 80 books, which can be stored on each device? Perhaps the Reader will attract those users who do need regular access to huge manuals while on the move. Some business users may appreciate the chance to read pdfs.

Sony is making impressive claims for its product, but it is being criticised on Internet forums for continuing to believe that the public want this product. Perhaps the main reason e-books have never taken off is simple: many people prefer to read a book. So the big question is – will the Reader sell? With a current price of $350, the answer is far from sure.