SharePoint development is for losers

The big losers would be the users

Transcript

1 B 2615 C 31st VOLUME NO. 39 FROM 24 SEPTEMBER 2004 UNIT PRICE 3.20 AUSTRIA 3.27 / SFR 6.26 NEWS ANALYZES TRENDS PKI the second attempt Users are rediscovering public key infrastructure. PAGE 14 Ariba's Second Spring President David McCormick believes the crisis is over. PAGE 26 The data center of the future Seven tips for reducing operating costs in data centers. PAGE 32 IT training in danger Applicants from vocational academies beat apprentices. PAGE 44 Developers under pressure Software quality is getting worse and worse MUNICH (CW) According to a global user survey by the Meta Group, newly introduced software is increasingly showing deficiencies. In the last three years, the Post Implementation Defect, which describes the software error rate per 1000 lines of code, rose from 0.36 to 0.68. The reason is the smaller development teams who have to implement increasingly complex and rapidly changing requirements under great time pressure. The analysts advise investing more in testing tools, processes, training and certification. (as)% Who is who? For the first time, the editorial team of COMPUTERWOCHE has compiled the hundred most important companies in the German ICT industry in a special issue. PAGE 10 Survey on Oracle's attempt to take over Peoplesoft The big losers would be the users MUNICH (CW) Since June last year, Oracle has been fighting to be able to take over Peoplesoft. The takeover battle is wreaking havoc on both competitors: The users are unsettled and prefer to buy their business software from the competition at the moment. COMPUTERWOCHE asked analysts, competitors and users for an assessment. The big losers from this takeover would be the users, because it's all about money, Wall Street and shareholder value, fears Andreas Bitterer, an analyst at Meta Group. He particularly recommends potential new customers to look around at the competition. SAP in particular will emerge from this takeover battle as the big winner. Peoplesoft users see the situation more relaxed. A company that is willing to pay that much money for Peoplesoft essentially buys the existing customers and the products, according to Peter Mischok, Managing Director of Igepa IT Service GmbH. He does not expect any disadvantages for the customers, since in the event of a takeover Oracle would hardly do without what it considers better products from Peoplesoft. André Birrenbach, IT manager at Rotkäppchen-Mumm Sektkellereien GmbH, does not assume that Peoplesoft's products will compete against Microsoft, SAP and IBM with a new company if Peoplesoft's products are acquired by Invensys and the ERP provider Baan, which was later passed on to SSA Global, is back in the IT industry. The software veteran, the Baan in the 1970s, focused on IT made in Germany 36 The German IT scene is better than its reputation. While the public mostly talks about SAP and Telecom, a large part of the progress is being made with embedded systems. founded, is now trying his luck as a provider of web services software. His new company Cordys, who also gave the software its name, is based in Putten, the Netherlands. Baan has been working on Cordys since 2001, Justin Anderson, who is responsible for Cordys operations in America, told US media. Numerous employees from the old Baan times are on board. Cordys wants to offer its customers an integration platform on the basis of which information and data from business applications from various providers can be found. Andreas Bitterer, Vice President and Analyst of the Meta Group: At some point, Peoplesoft customers will be informed that they will no longer receive support. position would disappear from the market: If support and development were to be discontinued, Oracle would alienate customers. (See page 8) (hv)% Jan Baan is working on a comeback with Web-Services MUNICH (CW) Jan Baan is trying his luck in the software market again. The former managing director of the ERP provider of the same name, which is now part of SSA Global, has founded a new company with Cordys. should be exchanged. In contrast to other integration providers who offer various products such as portals, application servers or special integration applications, Cordys is bringing out an integrated framework that supports all of the techniques mentioned, explains Anderson. The product is based on XML and open standards. Anderson admits that Cordys with IBM's Websphere, Microsofts.NET platform and SAP's Netweaver must assert itself against well-known competition in the integration market. Continued on page 4 This week G&D boss leaves: Willi Berchtold, managing director of Giesecke and Devrient, is leaving office surprisingly. PAGE 4 Netware successor presented: At the Brainshare developer conference, Novell presented the Open Enterprise Server, which is considered the successor to Netware. PAGE 4 Oracle plans tsunami: The database giant wants to enter the content management business under this code name and compete with Microsoft's SharePoint server. PAGE 6 Setback for Sender ID: The online service AOL does not want to support Microsoft's anti-spam technology, contrary to previous intentions. PAGE 6 Alcatel on a shopping spree: With Spatial Wireless and edial, the French telecommunications supplier is taking over two companies again after a long lean period. PAGE 6 Airbus should help Microsoft: In order to get the European antitrust authorities positive, Bill Gates is now relying on the help of corporations such as Airbus and Boeing. PAGE 7 Hackers are becoming more malicious: According to statistics, the harmless hackers with purely sporting intentions are now outnumbered. PAGE 7 Source code for governments: Microsoft founder Bill Gates opens his office suite Office for governments to fend off challengers from the open source camp. PAGE 12 JOB MARKET from page 46 job market subscription service Computerwoche, Postfach 800, D Offenburg PVST DPAG Fee paid

2 CONTENTS 3 News Products & Technologies Companies & Markets IT Strategies People Marketing The People The Competence DasImage Department Marketing The Vision The Services The Strengths DasImage The Core Messages of IT Marketing Project Marketing What is done? Why is it being realized? How is it done? Who is involved? Service provider versus user What is it now? Interview with Capgemini boss: Antonio Schnieder explains why the German subsidiary is currently growing faster than the French mother. PAGE 12 Agile software development: Teamwork, flexibility and a clear definition of the requirements should keep projects from failing. PAGE 24 Euphoria is subsiding: Internet usage in Germany hardly increased in 2004 compared to previous years. PAGE 28 Image cultivation: With targeted self-marketing, CIOs and IT departments can strengthen their acceptance in the company. PAGE 30 NEWS PRODUCTS & TECHNOLOGIES COMPANIES & MARKETS IT STRATEGIES Symantec 4 Symantec is particularly impressed by the consulting team of the IT security specialist. Microsoft is expanding Visual Studio 4 Among other things, tools for the management of software code and a work environment for all languages ​​are planned. FOCUS IT made in Germany IT location Germany 36 In the international ITC competition, Germany only ranks tenth. But the trend is upwards. Self-confident medium-sized ERP companies 40 Medium-sized ERP providers are looking for strategies for survival between Microsoft and SAP. IT for the auto industry 42 The future of automakers has already begun. But the moving computers must not crash. Keys to PKI Success 14 Many projects with the Public Key Infrastructure encryption system have failed because of their overly comprehensive approach. Concentrating on one core application has proven successful. Router as a complete solution 18 After 3Com, Cisco also presented devices which, in addition to classic router functions, provide features for VoIP, VPN, firewall and intrusion detection. Hyperion arranges portfolio 20 In addition to version 7X of the multidimensional database Essbase, which has been revised for new user groups, the BI specialist integrates its various client technologies. Notebook for wind and weather 21 Panasonic also offers advice on the degree of protection required for all of its robust portable models in the CF-29 model family. Ariba about to make a comeback? 26 After a sharp drop in sales, the former e-procurement specialist has recently shown itself to be surprisingly stable in its operative business. Storage software in demand 27 In the second quarter of 2004, the global market for storage software again grew significantly. According to IDC, the providers' income rose by almost 17 percent compared to the same period last year. EMC was able to maintain its leading position. Share of the week: Veritas Software28 The storage specialist's paper has yet to digest the price drops of the past few weeks, but has long-term prospects. STANDARDS 24.3 Other market shares in percent 32.5 EMC 22.6 Veritas Software 7.0 IBM 7.0 Hewlett-Packard 6.6 Computer Associates Column 7 Imprint 32 People 49 Figures Forecasts Trends 50 Job advertisements 46 Lower data center costs 32 Mit A bundle of measures can reduce IT operating costs by a quarter. These include consolidation projects, thin client computing, open source and IP telephony. IT SERVICES Everything from one service provider 34 The major IT service providers are expanding their portfolios. The market researchers from Lünendonk believe they have discovered a new type of provider. TDS is getting leaner 35 TDS AG sells its system integration division to the consulting firm JM2 Consulting. JOB & CAREER Fewer IT trainees 44 corporations rely more on applicants from vocational academies. This worsens the chances of secondary and secondary school students. Hardly any virtual classrooms 49 SAS training director Norbert Seibel complains about the reluctance of Germans when it comes to technology-based seminar methods. online news products + technologies IT strategies job + career job market company + markets project exchange subscription shop members only media service contact data protection imprint exchange 2003: consolidation offers enormous savings potential black holes in the budget career guide 2004 Blackberry replaces the notebook Mobile clients have Research in Motion (RIM) Blackberry handhelds captured their market share. But the handhelds can do more: At Völker AG, they replace the notebooks of the field staff. Photo: Photodisc Consolidation in the software warehouse Between the Davids and Goliaths in the software industry, there is hardly any space left for comrades-in-arms. The result: medium-sized companies either buy additional market shares or are swallowed up themselves. Market consolidation is in full swing Microsoft is reviewing Windows licenses Computer lawyer in biggest piracy scandal, The Ups and Downs of Windows

3 4 NEWS No change in the Bitkom top G&D boss Berchtold resigns MUNICH (CW) Willi Berchtold, CEO of the Munich banknote and chip card manufacturer Giesecke & Devrient (G&D), has surprisingly announced his resignation. Even insiders were not prepared for Berchtold's withdrawal. According to a G&D spokesman, the managing director informed the supervisory board of his plan last week. Accordingly, he wants to give up his office on October 31. The decision to resign as chairman of the G&D management team was apparently so surprising that no successor has been determined to date. Until further notice With the acquisition, Symantec hopes to strengthen its consulting expertise. Customers include six of the ten leading financial institutions, four of the ten largest independent software manufacturers and seven of the largest carriers. At the same time, the company is given access to applications for password management, for securing web-based applications and for detecting security leaks in competence in the field is no coincidence: the founders should take responsibility for managing directors Walter Schlebusch (banknote printing) and Peter Zattler (finance) take. Speculations that there had been differences of opinion about the course of the company were denied by circles close to the company. Berchtold switched from IBM Germany to G&D in 1998 and had the Oracle not being used Total answers: 607 Figures in percent Source: CW Yes 42.8 Will Oracle take over Peoplesoft? 5.5 No assessment Company more geared towards the growth markets of security and chip cards. However, during the crisis in the IT industry, G&D had gone through several restructuring phases in recent years. G&D had great hopes for the introduction of the health card in Germany, a project about whose schedule Berchtold had recently expressed criticism. He does not want to give up his position as president of the ITK umbrella organization Bitkom, which he only took up in July last year. This is interpreted in such a way that Berchtold will shortly take on a new role at another IT company. (gh) brings consulting know-how Symantec strengthens the consulting arm with acquisition MUNICH (CW) Symantec intends to buy the IT security specialist. The company wants to catch up with its competitor Mc-Afee, who took over Foundstone, a specialist in tracking down IT security leaks, in August. Willi Berchtold G&D The former IBM manager will most likely stay in the IT industry. the company originally belonged to lopht, a so-called gray hat hacker group who publish security leaks but do not use them for criminal activities. Financial details of the deal were not disclosed. (mb)% 51.7 No online CW39 / 04 The majority of Computerwoche.de readers are of the opinion that Oracle will fail with its takeover attempt. Brainshare: Support from partners Novell blows the Linux offensive BARCELONA (CW) This year's Novell Brainshare developer conference in Barcelona was all about Linux. The networkers entered into a number of new partnerships when it came to Linux. The company announced the prospect of a first public beta version of the Open EnterpriseServer for November. Many industry experts see the system as the successor to classic Netware. For Novell, the European Brainshare was a welcome platform to present its own Linux strategy to users in the old world. Although it is not that different from the white papers that the company published at the American Brainshare in March, Novell can now underpin its strategy with concrete partnerships and products. With Bull, IBM, Intershop, Scali, SoftwareAG and Tarantella, Novell has gained important Linux partners. While companies like Intershop or Software AG port their products to Suse Linux or develop new solutions, others are opening their partner programs. In this way, Novell and IBM are expanding their collaboration on Linux, while Bull first joined the Novell Partnerset Technology Program. Scali tests Linux solutions Linux users will find practical help at Scali in Oslo. On behalf of Novell, it operates the High Performance Computing Center of Excellence, which is intended to support customers and ISVs in testing Linux solutions. Novell also wants to set up a first porting and migration center in Germany to simplify the switch to the Suse Linux EnterpriseServer for users. A highlight at the Brainshare, which put the other product presentations in the shade, was the announcement that the Open Enterprise Server will go into the public beta test from November 2004. The platform is expected by many users because it is the first time that it brings together Netware and Suse Linux. The user can then choose which operating system kernel he wants to use. Based on the kernel, the network services of Novell Services are available to him, as JackMessman, CEO Open Enterprise Server, brings together Netware and Suse Linux. also the applications of the Linux world. The new Zenworks 6.6 Linux Management, which according to Novell can also be used under Red Hat, is used to administer the Linux environment. Novell promises a simplification of the identity management with the Virtual Directory Services and the E-Directory 8.8. The VirtualDirectory Services allow developers to integrate locally stored identities into existing company-wide directories. This means that identities can now be linked to applications without having to set up additional stand-alone directories or change company-wide directories. The E-Directory is said to have improved installation processes and higher performance, so that the use of millions of identities is possible. (hi)% CONTINUED FROM PAGE 1 JanBaanbastelt ... However, the advantage of the newcomer lies in the independence from the manufacturers. Competitors primarily relate integration to their own products. Analysts do give Cordys opportunities. The competition is tough, says Ron Schmelzer, an analyst at Zap Think. However, it would be foolish to underestimate Cordys technology and the skills of company founder Jan Baan. He sees his work as a continuation of the Baan story. Much will, however, depend on whether the new company succeeds in luring customers away from their previous software providers. (ba)% In the future, an environment for all programming languages ​​Microsoft is pushing ahead with the expansion of VisualStudio MUNICH (CW) Microsoft presented VS Live! in Orlando, details of his product strategy for the tool collection Visual Studio were explained. Tools for the management of software code and a working environment for all languages ​​are planned.A special edition was also presented. One of the highlights of the event was the presentation of a beta version of Visual Studio 2005 Team System (VSTS). In the future, it will offer development teams tools that support the editing of software code throughout its entire life cycle. For the first time, the manufacturer is competing against providers such as Borland and IBM / Rational, who have been promoting application lifecycle management (ALM) with corresponding products for a long time and are increasingly combining these with their development environments. An important part of the future ALM offering from Microsoft are tools for configuration management, which in future will be sold as the VSTS Team Foundation. Among other things, they offer team functions for change management, saving and tracking changes in the code, and controlling code usage. Microsoft's previous tool Source Safe, however, is being phased out. VSTS will be available together with the next version of the Visual Studio 2005 development suite, which is now available as an updated Beta 1 release. Their Standard Edition is to come onto the market in the first half of 2005 and, as a special feature, will support the programming languages ​​Visual Basic, C / C ++, Visual C # and Visual J # in one environment for the first time. The previous marketing of Visual Studio in separate packages will only be available in the future for the recently introduced Express versions for beginners. In addition, the manufacturer announced the Visual Studio.NET 2003 Professional, SpecialEdition in Orlando. It is used to develop web-based corporate solutions that can be integrated with the Office package. The development tools VisualStudio.NET 2003, Windows Server 2003 Developer Edition and SQL Server 2000 Developer Edition are included. A full version costs about $ 750. (as)%

4 Middleware connects everything. Do you see it? Rational Resolution 1. Software makes the competition look old. 2. Wireless application developed smoothly. 3. Interface installed cheaper than expected. 4. New product delivered early. 5. Software created with Development Platform. MIDDLEWARE IS IBM SOFTWARE. A powerful software like Rational. Ideally suited to support the IBMSoftware Development Platform. Ideal for getting a head start on the competition. An efficient solution that installs, integrates, updates, extends and builds software. Open, modular and therefore easy to integrate into your existing systems. This is how you program your company for success. This is ON DEMAND BUSINESS. See the success story of many companies. With the IBM Software Development Platform. At ibm.com/middleware/sdp/de IBM, the IBM logo, and Rational are trademarks or registered trademarks of International Business Machines Corporation in the United States and / or other countries. Other company, product, and service names may be trademarks or registered trademarks of their respective owners IBM Corporation. All rights reserved. O&M IBM SW 23/04

5 6 NEWS Tsunami to be announced in the fourth quarter Content management: Oracle plans market entry MUNICH (fn) Oracle wants to expand its activities in content management. Under the code name Tsunami, the Californians are developing software for document management and archiving based on the collaboration suite. Not Oracle, but the market research company Ovum let the cat out of the bag to the annoyance of the software giant. We won't say more about the product until the fourth quarter, a company spokeswoman admitted tightly. Tsunami will only be available According to Alan Pelz-Sharpe, Research Director at Ovum, Oracle does not intend to compete with specialists in enterprise content management such as Filenet, Documentum or Open Text. While these competing products are complex and usually only come into question for individual departments in the company, Tsunami aims to provide companies with a highly scalable, cost-effective platform for managing documents and s, process processing and records management, i.e. storing documents in accordance with legal requirements Regulations to deliver. According to Pelz-Sharpe, Oracle's entry into the market is directed more against Microsoft. The Redmond-based company is quite successful with the Sharepoint product, which is designed for collaboration and simple document management, in combination with the Office suite. According to the Ovum man, Oracle will try to market Tsunami as a platform for company-wide solutions with 5000 to 5000 workstations. The database specialist would benefit from the fact that the products of many content management providers are too expensive for installations of this size. Compared to Microsoft's Sharepoint, Oracle sees itself as having an advantage, since Tsunami will run on a Java-based infrastructure platform and will probably scale better. But nobody knows the full extent of the tsunami yet, and one can only speculate about its success. Experts are rather critical of the chances of success of the tsunami. Oracle had deficits in document management and workflow. The functions for web content management were underdeveloped, according to Ulrich Kampffmeyer, expert for document management and managing director of the management consultancy Project Consult from Hamburg. Now the provider is preparing with Tsunami to deliver missing functions (workflow and team functions) that the competition can already show. With Tsunami, Oracle offers content management functions that the competition already has. Ulrich Kampffmeyer, Project Consult According to Kampffmeyer, the market penetration of tsunami stands or falls with the licensing policy of the provider. It is likely that Oracle will advertise Tsunami and the Collaboration Suite as a complete package. However, Kampffmeyer points out that such a bundling would overwhelm users with program functions that often covered existing programs from SAP, Microsoft and IBM / Lotus and specialized providers. Nevertheless, Oracle will try to bring content functions to the man in the context of database, data warehouse and ERP contracts. This is also supported by the fact that, according to Ovum, the Tsunami technology should also be integrated into the E-Business Suite. Success will also depend on whether Oracle finds suitable integrators who can build solutions for companies from Tsunami. Kampffmeyer is convinced that the manufacturer must first win over the appropriate system houses. But many of them have been dealing with the products of established providers for years. % IETF wants to change the standard, AOL takes off. Setbacks for Sender ID MUNICH (CW) Microsoft's anti-spam technology Sender ID suffered a setback. With AOL, one of the original proponents has dropped out, and the Internet Engineering Task Force (IETF) has decided to only standardize the process in modified form. America Online (AOL) had already set up a trial implementation of the anti-spam technology Sender-ID developed by Microsoft, but decided against it because of the alleged lack of acceptance especially in the online community for free and open source software. Microsoft's advance suffers yet another setback: The responsible working group of the Internet Engineering Task Force After years of saving and shrinking, Alcatel has embarked on a new strategy. With two acquisitions in supposed growth areas, the company is covering technical gaps, and the relationship with the (IETF) had previously announced that work on the corresponding technical standard for Sender ID would be suspended for the time being. The reason for this are the conditions of use for the use of the underlying technology. The open source scene in particular resisted this. The specification will probably now be made more flexible so that it supports both Microsoft's technology Porported Responsible Sender (PRS) and the Sender Policy Framework (SPF) from Pobox.com. AOL announced that it would support both methods for outgoing e-mails, but only process SPF-based ones for incoming electronic messages. (ave)% Spatial Wireless and edial taken over Alcatel swallows two US companies MUNICH (CW) The French telecommunications equipment supplier Alcatel wants to leave the industry crisis behind and has shifted into forward gear: The company is strengthening itself through two acquisitions in the USA for a total of 277 Million dollars. US market strengthened. For 27 million dollars, Alcatel bought the company edial, which specializes in programs for video conferencing and real-time collaboration. With a volume of 250 million dollars, the purchase of the company Spatial Wireless was significantly larger. The Texan company, which is already an Alcatel partner, focuses on software switches for the integration of mobile voice and data services with the fixed network. Meanwhile, Alcatel confirmed the goal of increasing sales in the third quarter by more than ten percent. The French sold the energy technology division to the investment company Ripplewood last week. (ajf)% Diamondback Borland improves Delphi tools MUNICH (CW) Borland claims to offer better Windows development tools than Microsoft. The importance of Delphi was therefore underlined at the in-house exhibition BorCon, which in the present version offers 8 developer teams a uniform environment for both existing Win-32 and new.net applications and is positioned by the manufacturer as a migration platform. The update known as Diamondback is currently in beta testing and offers a number of improvements. In addition to the ability to do code refactoring, the code editor now displays errors on-the-fly. The Starteam client is integrated for project management. The History Manager allows an automatic backup of the files. (ue)% Good arguments 100 million project Ford relies on Voice-over-IP MUNICH (CW) The US network operator SBC Communications will install a Voice-over-IP network for the automobile manufacturer Ford, which will work at 110 locations should provide. The project is scheduled to run for three years and is estimated to be worth $ 100 million. SBC, the second largest regional carrier in the USA, will build the infrastructure with Cisco equipment and also obtain the IP telephones from the networking company. With the deal, which also includes network management, a traditional network operator has succeeded for the first time in winning a major VoIP contract. In July, the IP specialist Cisco caused a sensation with an order from Boeing for a global Internet telephony network. 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6 NEWS 7 Aircraft manufacturers Airbus and Boeing could appear as witnesses in the European cartel dispute Microsoft forges alliances for the MUNICH trial (CW) The European cartel trial against Microsoft is widespread. Large corporations such as Airbus and Boeing apparently fear that the EU Commission could also target their industry after a decision against Microsoft. The software company is trying, however, to close the ranks of its allies for the upcoming proceedings. Semi-annual study by Symantec The European aircraft manufacturer Airbus wants to testify in favor of Microsoft as part of the proceedings of the EU Commission against the world's largest software manufacturer. Representatives of the company have requested this in a corresponding petition to the EU authorities in Brussels. According to a report in the Wall Street Journal, the Airbus executives apparently fear that a ruling by the European antitrust authorities against Microsoft could also affect the business of the aircraft industry in the foreseeable future. Accordingly, it is conceivable that manufacturers will be forced to allow companies other than the previous contractual partners to manufacture kitchen equipment or seats for the machines, for example. Airbus competitor Boeing could also take the stand for Microsoft. Company spokesman Tim Neale confirmed that the US company had received an inquiry from the world's largest software manufacturer about possible support in the antitrust proceedings. The company is currently examining the request from Redmond. In March of this year, Microsoft was fined almost 500 million euros by the EU Commission for violating competition law. In addition, the software manufacturer should release the coupling of the media player with the Windows operating systems and release interface information of its client and server operating systems for competing software providers. Those responsible for Microsoft have appealed against this ruling. MUNICH (CW) The image of the smart teenager whose goal is to crack systems but not cause any damage no longer applies to today's average hacker, says the antivirus manufacturer Symantec in its semi-annual Internet Threat Study. According to Alfred Huger, Senior Director of Engineering at Symantec Security Response, the driving force behind criminal activity has now been to steal and misuse personal data from victims or to earn money by spreading spam. Accordingly, the perpetrators are now proceeding more professionally. After a security vulnerability becomes known, it only takes an average of 5.8 days for it to be attacked. A year ago, the time span was 99 days, according to the study. Compared to the same period in the previous year, the number of newly emerged viruses has increased four-fold to 4496. In many cases, they were more advanced variants of older pests. The most widespread was the MyDoom worm in different versions. The trend is increasingly towards Trojan horses, which for example log keystrokes in order to spy out passwords and install relays to send spam. Bots are also becoming increasingly widespread. With their help, the authors can take control of infected computers and set up spam networks, said Huger. According to its own statements, Symantec discovered bot-infected computers in the first half of 2004. In the second half of 2003 there were only the biggest threat here is Gaobot, which also exists in many variants. Credit card numbers in demand Attackers are no longer concentrating as much on high-tech companies as in previous years, but are targeting smaller online shops. According to Huger, in most cases they target customers' credit card numbers. The hackers benefit from the fact that e-commerce offers from small companies often lack security. The number of worms that can independently spread on the web has decreased. Their share was 45 percent in the second half of 2003 and has fallen to 17 percent this year. At 37 percent, most attacks are launched from the United States. China follows in second place ahead of Canada. (lex)% Column Own operation lowers costs Mega deals are not a solution Joachim Hackmann Editor of the CW European Court of First Instance under Judge Bo Vesterdorf, the software manufacturer is now rearranging its ranks and looking for allies. So far, it is still unclear which companies Microsoft will bring to the stand. However, Horacio Gutierrez, chief lawyer of the software manufacturer in Europe, has already announced that he wants to offer the broadest possible front from different companies from different industries. So far, representatives of the EU Commission have not wanted to comment on Microsoft's process strategy. So far, no petition has been received from Airbus, said EU spokeswoman Amelia Torres. The authority could also see no connection between the Microsoft case and the aircraft industry. Antitrust law experts also doubt that Microsoft's strategy will be successful. If you want to intervene in such a process, you have to prove a connection with your own business, explains British lawyer Frank Fine. However, it would be difficult to prove a connection between the Airbus machines and the media player in Windows. (ba)% J.P. Morgan is bringing its IT back into the house MUNICH (CW) The US bank J.P. Morgan Chase & Co. will operate the IT that was outsourced to IBM two years ago from next January. Employees previously taken over by Big Blue are returning. The seven-year outsourcing agreement signed between J.P. Morgan and IBM Global Services at the end of 2002 has lapsed. J.P. Morgan fully- The outsourcing business is currently changing fundamentally. The US financial group J.P. Morgan Chase & Co. is reversing one of the largest outsourcing projects ever completed after only two years of productive operation through the outsourcing partner IBM. It is more in your own interests to manage and control the installation yourself, according to top managers of the financial group. At almost the same time, the new Infineon boss Wolfgang Ziebart announced that the chip manufacturer would change its outsourcing course. Although he is not planning a fundamental U-turn, he is planning a less aggressive outsourcing policy than the one that his predecessor Ulrich Schumacher had adopted under extreme cost pressure. The external company is increasingly being examined more soberly and critically. The notion that outsourcing obnoxious IT departments, a heterogeneous infrastructure and undocumented legacy applications means that you can get rid of all problems at the stroke of a hand is wrong. One of the partners pays the bill in any case, as numerous examples prove: Daimler-Chrysler and HP experienced a belly landing with a global PC outsourcing deal. The British National Savings project ruined the operator SBS several times and some lazy outsourcing deals almost drove EDS to ruin.It is above all the mega-deals, the hundreds of millions of euros or dollars in projects, that cause problems. It is not uncommon for neither side to be really happy with them. On the user side, there are no savings effects, and the modernization of IT that is usually initiated with the handover costs energy and ties up resources. In addition, the drew did a complete turnaround, not unexpectedly, and will take over the data centers, help desks, distributed IT systems as well as the voice and data networks that were outsourced at the time from January 1, 2005. The decision is not unexpected. It has its origins in the merger of J.P. Morgan and Bank One earlier this year. Under the leadership of CEO James Dimon, Bank One had a massive monopoly on the expansion of IT users in the outsourced areas. The providers, in turn, sometimes pay excessive prices for acquired assets and promise more than they can keep in order to win prestige contracts. This has a negative effect on the balance sheet, large outsourcing projects are in the black today at the earliest after three or four years. An environment in which innovations flourish for the users' core business looks different. Mega deals have outlived themselves, but outsourcing itself is unstoppable. Small, targeted outsourcing projects are easier to manage and control for both partners. The return on investment is easier to determine, and in the event of problems, the affected functions and business processes can be brought back or outsourced to another partner. The Infineon boss's announcement fits into this picture, and J.P. Morgan’s future strategy. It is hard to imagine that the US bank will not outsource any part of its IT operations. It is unimaginable, however, that there will be a single new record project again. invested, promoted in-house operation and was able to achieve significant cost savings. Dimon is currently Chief Operating Officer (COO) of the merged group and is expected to take over the position of Chief Executive Officer (CEO) from 2006. In a mandatory notification to the US Securities and Exchange Commission, IBM, the J.P. Morgan withdrawal will have a positive impact on the coming earnings. The project was still in the investment phase. (jha)%