February 1, 1998

News from Cyberspace

Are executives soaring on the Internet? A survey by the Deloitte Consulting says that the Internet is falling out of favor with a growing number of North American corporate executives. Why? Because of poor online business. Despite a rise in corporate Internet use, a majority of chief information officers are disillusioned with the Internet’s perceived inability

to improve companies’ bottom lines. Barbara Kieley, a Deloitte partner, says that 69 percent of executives questioned say Internet costs are a “significant concern,” up from 16 percent in 1995. As a result, executives are cutting back on Internet spending, with the number of CIOs planning to increase Internet spending dropping from 65 percent to 31 percent, and 17 percent of CIOs

expecting no increase in spending while 1 percent forecasting a decrease in Internet spending.

SPONSORED CONTENT

Ways to thank a caregiver

If you have a caregiver or know someone who has been serving as a primary caregiver, March 3rd is the day to reach out and show them how much they are valued!

Beware of diploma mills on the Net. A number of would-be students have fallen victim to the dark side of distance learning on the Internet — fraudulent schemes that claim to offer accredited degrees in as little as 27 days. In many of these cases, a Web site is about all these “institutions” have to offer, says the co-author of “Bears’ Guide to Earning College Degrees Nontraditionally.” And while some people assume that a “.edu” suffix guarantees the authenticity of an educational institution, Network Solutions (the company that registers Internet domain

names) says it gives a “.edu” name to anyone who requests it. So far, the Accrediting Commission of the Distance Education and Training Council is the only nationally recognized accrediting body for distance-learning programs, while the Global Alliance for Transnational Education focuses on evaluating and certifying international institutions.

Will advanced technology program fund online education? The U.S. Commerce

Department is expected to decide early this year whether to provide funding to learning technology ventures through the Department’s Advanced Technology Program, which has funded such things as better refrigeration technologies and improved health information systems. Program manager Richard W. Morris says: “If we migrate to the Web, all of a sudden the

economies of scale change dramatically. If we do the technology right, we can re-use and update and integrate the pieces of instruction in almost an infinite number of ways so all the advantages of the Internet make for a new economy of learning.”

Rate cuts could slow Net telephony. Telephone companies’ rate reductions for international calls may slow the spread of Internet telephony, according to a market research report. The Yankee Group Europe, based in London, said proposals by the U.S. Federal Communications Commission could “adversely impact” the development of Net telephony. The FCC is planing to reduce the cost of calls by lowering the amount paid between carriers

sending and receiving each other’s traffic. Net telephony consultant Jeff Pulver disagrees with the researchers. He has been a central figure in the development of Net telephony and sponsors Voice of the Net conferences on the subject. “Internet telephony is not about cheap or free long distance calls, but rather enhanced services,” he said. Future telecommunications networks will be built using Internet protocols, he predicted, saying, “IP telephony is a fundamental technology that will be used to provide data services, plus voice.”

Computing down the highway. Intel will soon offer a new voice-activated in-car computer that will read e-mail out loud to the driver and automatically call 911 if there’s a collision. The system will offer the same functions as a desktop computer, plus connection to the Internet and a wireless keyboard for passengers. A manager for the Connected Car program explains: “The idea is that you’re keeping your passengers connected with information

systems.” Intel is in talks with major manufacturers to have the computers included in cars by 2000.

High-tech’s liberating effect. As the Internet makes inroads into information-restrictive nations, such as China, efforts to limit access to only “desirable” ideas are doomed to failure, say experts. “The complaint one hears against the Internet isn’t that there is too little speech,” says

Manhattan Institute analyst Peter Huber. “Instead, the argument is that there is too much hateful or pornographic speech. Stalin manipulated the past, altering photos and just wiping people and events out of the historical record. But today, documents and photos get downloaded and

stored in files all over the world. You can make corrupt copies, false copies, but you can’t erase real copies, now.” Huber, author of the book “Orwell’s Revenge,” applauds the move by industry to make encryption products widely available: “It means that we can now create a zone of

privacy that the government can’t penetrate. That’s the exact opposite of what Orwell thought would happen.”

Rosy tally for holiday e-commerce. Several analysts agree that the volume of online holiday shopping this year far surpassed last year’s. The chief of America Online’s e-tailing area has been quoted saying business doubled. Pioneer online merchant, Jim McCann of 1-800-Flowers, has offered some information about his site’s sales. Eight percent of his company’s telephone customers mentioned the Web site, pointing to the increasing use

of sites as electronic catalogs, he says. “Our customers are also telling us that they are increasingly pressed for time. They will give their business to companies that are convenient and easy to access and who also provide them with help in selecting gifts,” McCann adds.

Internet gaming league. The Professional Gamers’ League began its first season this past fall, with more than 1,000 personal computer game aficionados signed up to participate in the first pro organization for online computer game players. The PGL boasts a commissioner, referees, playoffs, big-name sponsors and player endorsements. Separate tournaments will be held in two categories: action, featuring the game Quake, and strategy, using Command & Conquer: Red Alert. The single-elimination tournaments will last about two months, and the games will be available for viewing in real-time on the Internet. Cash prizes will be awarded the winners. Forrester Research estimates there are 6.9 million online gamers, with that number expected to more than double by 2001.

Internet start-ups may get crushed by progress. Netscape, Cybercash and Spyglass are examples of “hot” Internet pioneers whose stock prices have fallen dramatically from their all-time highs and are now at levels below their initial public offering price. The reason? Competition from Microsoft and other established companies. Industry analyst Kevin Landers

says: “As soon as innovation slows down, they are playing a game the Goliaths have been playing for a long time. There are going to be companies along the way that get crushed by progress.”

Answering machine does e-mail. Casio PhoneMate is coming out with a digital

telephone answering machine that enables users to also check and read e-mail. The IT-380 E-Mail Link supports the POP-3 e-mail standard and will be available in the spring.

Online trading more than half of Schwab’s business. Online trading is soaring to new levels. Electronic trading accounted for more than have the retail commission trading conducted by Charles Schwab in December, according to a report by ZDNet. A spokesman for Schwab said 42 percent of the entire quarter’s commission-generating business came in online. The

nation’s largest discount broker intends to expand its Web site next week, the report added, with Schwab adding research from full-service brokerage firms.

Net performance improved in 1997. 1997 was also not the year the Internet

crashed, as Net guru Robert Metcalfe predicted would happen someday. According to over 5.2 million measurements collected by Keynote Systems, a monitor of Internet performance, the average time required to access and download the home pages from 40 popular business Web sites during business hours was 26.19 seconds. There were, however “severe variations” in

Internet performance based on where the users were. Boston and Milwaukee were the best of 27 large metropolitan areas from which to access Web sites. Page-download times were often more than four times faster than from the slowest ones, Tampa, Fla., and San Diego.

Researchers find Microsoft browser most used. A management consulting firm’s ongoing study of Internet browser use reported Netscape’s Navigator browser is losing market share to Microsoft. Positive Support Review Inc. said recent data covering the period from Sept. 9, 1997, to Jan. 3, shows Microsoft’s browsers (versions 2, 3 and 4) were used in 63.3 percent

of all Internet sessions, vs. Netscape’s browsers (versions 2, 3 and 4), which garnered only 35.6 percent. “Based on analysis of the data, it is clear that Microsoft’s IE 4.0 product is taking market share away from Netscape,´ said PSR Chief Executive M. Victor Janulaitis. “On the bright

side for Netscape, the 4.0 product is holding its own and maintaining a strong market position.”

Are executives soaring on the Internet? A survey by the Deloitte Consulting says that the Internet is falling out of favor with a growing number of North American corporate executives. Why? Because of poor online business. Despite a rise in corporate Internet use, a majority of chief information officers are disillusioned with the Internet’s perceived inability

to improve companies’ bottom lines. Barbara Kieley, a Deloitte partner, says that 69 percent of executives questioned say Internet costs are a “significant concern,” up from 16 percent in 1995. As a result, executives are cutting back on Internet spending, with the number of…

Categories:
Sign up for BizWest Daily Alerts