CIO —
1. "IT Execs See Higher Spending Because Of Sarb-Ox," Computerworld, 10/20. Most companies complying with the Sarbanes-Oxley Act have had to raise IT spending particularly to beef up computer security and records management. However, firms that have invested in establishing frameworks to deal with SOX regulation should be well placed to deal with the demands of any future state or federal compliance.
2. "Microsoft Assesses Linux, Google," PC World, 10/20. Gates Inc.’s CEO Steve Ballmer admitted the company has had to scale back its ambitious plans for its Vista operating system to include a new file system and presentation surface. Instead, the new components will appear after Vista launches in the second half of next year in order to ensure they are fully secure. Microsoft hopes to leapfrog what Google and Yahoo are doing on the Internet through the development of new search technologies, he said, stressing the software giant’s commitment to innovation.
3. "The Tech Party Isn’t Over," BusinessWeek, 10/19. The week was dominated by IT vendors announcing their financial results, and, for the most part it was good news all round with the likes of Intel, IBM and Motorola all reporting continued strong demand for their products. However, analysts are predicting a likely slowdown in sales growth for the fourth quarter in part due to the impact of rising energy costs on consumers.
4. "As Nortel Appoints New CEO, Users Hope For Growth," Computerworld, 10/20. This week’s big surprise was the announcement of a new man at the top of troubled telecom equipment company Nortel. Mike Zafirovski, Motorola’s former president and chief operating officer, replaced incumbent Bill Owens after only 19 months in the job. Customers are hoping Zafirovski will continue Owens’ work on reforming and stabilizing a company rocked by financial restatements and executive reshuffles. The only potential fly in the ointment is a suit Motorola filed to stop Zafirovski from working for Nortel for two years claiming he’d breached noncompete agreements he’d signed with the firm before leaving in January 2005.
5. "Livermore: HP To Stay The Course," Computerworld, 10/17. Despite many rumors to the contrary, Hewlett-Packard intends to stay intact with no plans to spin off any businesses or radically change its strategy, according to company executive Ann Livermore. Instead, HP will carry on acquiring businesses to expand its IT architectural strategy known as Adaptive Enterprise. Customers welcomed the downbeat message from Livermore and CEO Mark Hurd, saying they’d undergone enough change under the reign of HP’s previous CEO Carly Fiorina.
