Your report for Monday, May 2, 2005

Dow Corning income, sales head upward
New auto software from veteran Troy tech firm
Microsoft seeks more auto biz, donates $1M to The Henry Ford
Concordia, Kettering sign transfer deal for engineering
students


Kalamazoo wraps up TechTour 2005 with tons of cool stuff: My ancestral homeland (well, close enough) of Kalamazoo was the fifth and final stop on the TechTour 2005 of Michigan technology, sponsored by Walt Michal RV Center and Wireless Oakland. And what fun it was. The day began with a visit with M. Kathleen Johnson, director of the RFID Technology Center, housed at Kalamazoo Valley Community College. The center's mission is to promote West Michigan as a research and development center in RFID, which essentially is the use of tiny radios printed on tags to send, receive and store a variety of data on a variety of objects for a wide variety of purposes, many having to do with inventory control -- they're eyed a next-generation for the bar code. The RFID Technology Center in Kalamazoo was established about a year ago mostly under the urging of Blue Granite Inc., a veteran Kalamazoo tech firm that's working with the region's blueberry farmers and bedding plant growers to use RFID to keep track of inventory and prevent food and flowers from spoiling in transport and storage. Blue Granite hosted an early RFID user group, but decided to move it to KVCC and make it a nonprofit in order to obtain more funding for research, and to provide a structure that would allow multiple companies to participate. Right now, the center has three pilot research projects under way, including a study on how RFID tags that transmit temperature and humidity information can be used to prevent spoiling of fresh fruit. Western Michigan University also has a terrific RFID lab, which we'll get to in a minute. The RFID Technology Center is also planning an RFID summit with Automation Alley in October. More at a nifty Web site, www.rfidtechnologycenter.com


Monday, May 2: American Society for Quality, 5:30 to 7:30 p.m., Cleary University, 3601 Plymouth Road, Ann Arbor. More at  www.asq1010.org or call (734) 426-2130.

Tuesday, May 3: Ann Arbor IT Zone Robert Pasick's Leaders Connect Breakfast, 7:15 to 9:30 a.m., Ann Arbor IT Zone, 330 E. Liberty St., Ann Arbor. More at www.annarboritzone.org

Tuesday, May 3: Kalamazoo Venture Tuesday, 9 a.m. to noon, Southwest Michigan Innovation Center, 4717 Campus Drive, Kalamazoo. More at www.southwestmichiganfirst.com

Wednesday, May 4: Harris Interactive Presents Rollout at the Ritz, 7:30 a.m. to noon, Ritz-Carlton Dearborn. More at this link.

Wednesday, May 4: Ikon Office Solutions Document Management Event, noon to 3 p.m., Tiger Den, Comerica Park, Detroit. More at www.ikon.com/insight.

Wednesday, May 4:  Western Michigan and Upper Peninsula Chapter of the Special Libraries Association Competitive Intelligence Event, 1 to 4:30 p.m., Grand Rapids Community College Applied Technology Center, Room 168. 

Wednesday, May 4: Michigan Council of Women in Technology Sponsor Recognition and Scholarship Event, 5:30 to 7:30 p.m., Birmingham Country Club. More at www.mcwt.org

Thursday, May 5: Automation Alley product launch event, 8 to 10 a.m., Automation Alley headquarters, 2675 Bellingham, Troy. More at this link.

Thursday, May 5: 123Secure.Net reseller recruitment event, 10 a.m. to 5 p.m., Hockeytown Cafe and Comerica Park, Detroit. More at dfuller@123secure.net or call (248) 837-1236.

Thursday, May 5: GlimaWALA Munch, Learn & Mingle, 6 p.m., Cleary University, 3601 Plymouth Road, Ann Arbor. More at www.glimawala.org

Friday, May 6: Ann Arbor IT Zone Creativity Forum, noon to 1:30 p.m., Ann Arbor IT Zone, 330 E. Liberty St., Ann Arbor. More at www.annarboritzone.org

Saturday, May 7: University of Michigan Mars Engineering Team, 1 to 4 p.m., Cranbrook Institute of Science, Bloomfield Hills. More at www.cranbrook.edu or call Michael Narlock, Cranbrook Institute of Science Head of Astronomy, at (248) 645-3729.

Tuesday, May 10 and Wednesday, May 11: Detroit TechCongress, Royal Park Hotel, Rochester. More at www.detroit-techcongress.com

Tuesday, May 10 and Wednesday, May 11: Small Business Innovation Research and Small Business Technology Transfer grant workshops, Michigan Works building, 1209 South Garfield Ave., Suite C, Traverse City. More at www.bioconsultants.com or call (734) 930-9741.

Tuesday, May 10: Automation Alley CompanyCrafters HyperGrowth seminar, 8 to 10:30 a.m., Automation Alley headquarters, 2675 Bellingham, Troy. More at this link.

Tuesday, May 10: First Tech Direct - Microsoft Corp. CRM event, 4 to 7 p.m., Microsoft office, 1000 Town Center, Suite 1930, Southfield. More at www.firsttechdirect.com/CRM_Southfield.htm

Tuesday, May 10: Entrepreneur and Investor Exchange, 5 to 8 p.m., Fox and Hounds, Woodward Avenue at Long Lake Road, Bloomfield Hills. More at www.entrepreneurinvestorexchange.com

Tuesday, May 10: Ann Arbor IT Zone High-Tech Tuesday, 5 to 7 p.m., IT Zone, 330 E. Liberty St., Ann Arbor. More at www.annarboritzone.org

Tuesday, May 10: Detroit Chapter, Independent Computer Consultants Association monthly meeting, 6 to 8:30 p.m., Novi City Hall, 45175 West 10 Mile Road. To RSVP, e-mail rsvp@icca-detroit.org or call (734) 673-4749.

Wednesday, May 11 and Thursday, May 12: Telecommunications Association of Michigan PoliTech 2005, Radisson Hotel, Lansing. 

Wednesday, May 11: Southeastern Michigan Chapter of the Society for Technical Communication and the Michigan Chapter of the Usability Professionals' Association joint meeting, 6 to 8:30 p.m., TechSmith Corp., 2405 Woodlake Drive, Okemos. More at www.stc-sm.org or www.miupa.org.

Thursday, May 12 and Friday, May 13: Ann Arbor Entrepreneur Boot Camp, Michigan Information Technology Center, 1000 Oak Brook Drive, Ann Arbor. More at www.annarboritzone.org

Thursday, May 12: Microsoft Corp. SQL Server 2005 Summit, 8 a.m. to 5 p.m., Microsoft office, 1000 Town Center, Suite 1930, Southfield. More at this link and enter event code 1032271928.

Thursday, May 12: Analysts International Security Expo 2005, 8 a.m. to 4 p.m., Westin Southfield, 1500 Town Center. To register, visit http://security.analysts.com

Thursday, May 12: Automation Alley CompanyCrafters series, The Venture Value Chain, 5 to 7:30 p.m., Automation Alley headquarters, 2675 Bellingham, Troy. More at this link.

Thursday, May 12: GlimaWest elections and presentations, 5:30 p.m., Tre Cugini, 120 Monroe Center, Grand Rapids. More at www.glimawest.org

Note: Some sponsorships for the special sections are still available. For information on this or other Great Lakes IT Report marketing matters, contact Dan Keelan at dkeelan@cbs.com or (248) 455-7252.

Then it was BlueGranite's turn. CEO Matthew Mace said this tech company was founded in 1996 as Granite Solutions to build Web pages for hosting clients of AT&T Corp. That relationship lasted about two years, when hosting prices plummeted, and BlueGranite evolved into application development. Today, the company has 22 employees and takes up 8,000 square feet of a very cool building in Western Michigan University's Business Technology and Research Park, in what used to be a cornfield southwest of WMU's campus. How has BlueGranite survived when other tech companies have folded? Mace credits some luck, but also a drive to stay entrepreneurial and be willing to try new products and services. Blue Granite got into RFID three years ago and is chasing that business. And more recently the company has entered the business intelligence market, offering sophisticated data analysis services. The company also continues to chase new clients, recently landing transportation equipment manufacturer Eaton Corp. And Mace said BlueGranite is now recruiting staff at ever-younger ages, even now seeking to identify promising future staffers at the Kalamazoo Area Math and Science Center, a multi-high-school magnet center for gifted math and science students.
After BlueGranite it was on to WMU's stunning new College of Engineering, where I met with Bradley J. Brazuin, assistant professor of electrical and computer engineering, who will talk your ear off about his fascination with radio. Brazuin runs the RFID lab at Western's engineering school, where students design and test a wide variety of RFID radios, antennas and other systems. They also design sensors to run RFID systems. If you're into radio, you would love this place. More about the lab at http://homepages.wmich.edu/~bazuinb. And the new engineering building itself, which the WMU engineering college moved into in August 2003, is unbelievable. Check this page from the architects, and this one from the university.) Bob Miller, a WMU associate vice president in charge of economic development, said the university's major economic development effort these days is WMU's 265-acre Parkview Campus, which includes the College of Engineering and Applied Science complex and the 137-acre Business, Technology and Research Park. The campus got its start in the fall of 1999, and is now home to 26 companies and 500 private sector high-tech jobs. Sixteen of the companies are in life sciences and nine are in advanced engineering. BlueGranite is the only IT company in the park so far. The engineering complex includes the College of Engineering, an energy resource center that includes an energy engineering teaching center, and a pilot paper plant. The engineering building is 330,000 square feet, and houses 3,000 students in 18 engineering disciplines. The BTR park already has 80 percent of its land spoken for. The park is also a state SmartZone, and happens to house more than half of the SmartZone companies in the state. Miller also said the university is ramping up its tech transfer efforts in terms of intellectual property licensing.
I wrapped up my visit to Kalamazoo by visiting a Portage software company that made me feel right at home -- Configuration Solutions L.L.C., which has created a software system that allows manufacturers of complex, custom systems to produce price quotes and responses to bids more quickly, efficiently and consistently. Predecessors of the company date back to 1980 in Chicago. It current system, CS-Enterprise, was developed by a predecessor company, Logia Business Systems, in 1988 as a DOS program. It was rewritten as a Windows system in 1996 and in 2000 as a Web-based, thin-client Java application. The company is now on version 3.6 of that application. Configuration Solutions has marketed the system to a wide variety of manufacturers, from folks building custom pressure sensors to pumps to cans. But only last year did Configuration Solutions start chasing auto suppliers as customers. Today, the drive toward mass customization makes the product more appropriate than ever, company officials said. "Traditional business systems require you to prebuild every possible combination that could ever exist, whether it ever gets sold or not," said Ryan A. Colosky, vice president of sales and marketing. "Even if you don't actually build it you have to engineer it, cost it, have a bill of materials for it. Our system allows you to build all combinations on the fly, without ever having to prebuild everything." The system also automatically turns quotes into orders in a company's ERP systems, and even automatically generates engineering drawings for the shop floor off those quotes. Configuration Systems has 22 employees, 15 at its Portage headquarters. More at www.configsc.com
I want to thank everyone involved in Tech Tour 2005 for making it such a pleasure, from the folks who hosted me to my boss, Rich Homberg at WWJ, for coming up with the idea of getting me on the road, to Gerogeann Herbert, WWJ Operations Manager, and Curtis Paul, GLITR's marketing master, for holding down the fort for me while I was gone. And thanks to our sponsors, Walt Michal RV Center and Wireless Oakland, for believing that the tour had something important to say, something important enough to sponsor. And in a completely unsolicited endorsement, I will say that the Walt Michal Coachmen Freedom 20-foot RV is very easy to drive, and a lot of fun to have on the road. It would be perfect for a couple -- but for a family of four, I might spring for the 29-footer, which has a real bedroom in the back!
Dow Corning boosts income: Midland-based Dow Corning Corp., which offers a variety of silicon-based products, Friday reported net income of $135.9 million in the first quarter of 2005, up from $52.2 million in the same quarter of 2004. Adjusted for items related to the company's Chapter 11 bankruptcy, from which it emerged June 1, 2004, net income was $132.6 million. Revenue was $982.5 million, up 21 percent from $814.3 million a year earlier. "First-quarter sales growth was driven by volume increases in all major geographies," CFO J. Donald Sheets said in a statement. "Profitability improved primarily due to our ability to contain operating expense growth below the rate of sales growth." Dow Corning offers more than 7,000 products to some 25,000 customers worldwide, including a lot of the guts of silicon-based electronics. More at www.dowcorning.com. Dow Corning is a 50-50 joint venture of Midland-based Dow Chemical Co. (NYSE: DOW) and Corning Inc, (NYSE: GLW) .
New software from Genzlinger: Troy-based Genzlinger Associates Inc. said last week that it had released Version 7.0 of its Genzlinger Repetitive Manufacturing System software for Tier 1 and Tier 2 auto suppliers. The company said the new version of the software includes dozens of new features that expand functionality and ease of use. Included are better inventory systems, enhanced security, a shop floor subsystem, and integrated data collection. The software integrates electronic data interchange and radio-frequency data collection systems with a complete suite of manufacturing and financial applications that manufacturers use to plan and manage material, machines and personnel. More at www.genzlinger.com
Tech companies dominate '50 to watch': If you're watching the new business honor list, "50 Companies to Watch in Michigan," you're watching a lot of tech companies. The new awards, sponsored by the Edward Lowe Foundation, debuted last week with the Michigan Celebrates Small Business event in Lansing, keynoted by Gov. Jennifer Granholm. Nominees for the awards must be second-stage companies, defined as employing seven to 99 full-time-equivalent workers and generating $750,000 to $50 million in revenue. The companies must also be privately held and based in Michigan. Winners were selected by the Michigan Celebrates Small Business event partners: the Michigan Small Business & Technology Development Center, the Small Business Association of Michigan, the Michigan Economic Development Corporation, the U.S. Small Business Administration-Michigan and the Edward Lowe Foundation, based in part on the winners demonstrated intent and capacity to grow based employee or sales growth, exceptional entrepreneurial leadership, sustainable competitive advantage or other notable factors. The awards are sponsored by the Edward Lowe Foundation, the entrepreneur-support foundation established by the Cassopolis-based inventor of kitty litter. More at http://edwardlowe.org/Michigan50, or www.michigancelebrates.biz, where you'll see that about 35 of the 50 companies are companies you've read about in this newsletter!
Microsoft seeks more auto biz, donates $1 million to Henry Ford: Well, well. While I was out of town last week, it appears a fella named Bill Gates came to metro Detroit and introduced a new, simpler automotive telematics operating system, which a bevy of auto tech suppliers lined up to support. The Microsoft Peak Performance Automotive Summit event showed off Microsoft Corp.'s vision for the automotive industry. Microsoft's automotive business unit announced the official name of its telematics software platform to Windows Mobile for Automotive, which is to be available next year. Microsoft said the software will give the auto industry a standardized design to reduce cost, complexity and time to development for basic telematics systems. Windows Automotive, an operating system that offers building blocks for more complex in-car systems, will continue to be available. Both technologies are based in Microsoft Windows CE. Gates also announced a donation of $1 million from Microsoft Corp. to The Henry Ford. The Henry Ford is in the midst of a $155 million campaign to fund new exhibitions and programs at Henry Ford Museum and Greenfield Village, including those focusing on technological advancements. Gates announced the donation at The Henry Ford's Lovett Hall before the senior class of a charter school there, Henry Ford Academy. More at www.thehenryford.org. And if you'd like our ol' pal Mike Wendland's account of Gates' visit from the Detroit Free Press, click here. And here's an Associated Press take on the visit. 


Concordia, Kettering sign partnership for engineering co-op programs: Flint-based Kettering University and Concordia University of Ann Arbor last week signed a strategic partnership to introduce a collaborative co-op job programs that will make earning a bachelor's degree in engineering at Kettering easier for students who wish to begin their university education at Concordia, a liberal arts school affiliated with the Lutheran Church. Under the agreement, students will complete their first two years of study at Concordia University with extra counseling and support services, then transfer to Kettering's Flint campus to finish their bachelor's degree through Kettering's combination of classes and paid, professional work experiences at companies throughout the world. The agreement calls for joint academic advising to maximize student success and the smooth transition of students from one institution to the other.  This will be accomplished through the early identification and referral of interested students. Program components include career awareness forums, coordination and enhancement of transfer advising, mentoring, and job opportunities through co-op experiences at more than 600 companies around the world. More at www.cuaa.edu or www.kettering.edu.
Michigan layoffs possible for Pfizer: The Ann Arbor News reported Sunday that local layoffs may be one side effect as Pfizer Inc. swallows a bitter pill to restructure its worldwide operations - an initiative that seeks to purge $4 billion in company costs in three years. David Canter, senior vice president and manager of Pfizer's Ann Arbor Laboratories, acknowledged local layoffs are possible as the world's largest drugmaker moves through an extensive reorganization. More.
Client win for Synergy Computer: Southfield-based Synergy Computer Solutions Inc. announced Friday that it had been awarded a contract to assist CareSource with an implementation of Facets health care administration system. CareSource is a nonprofit Medicaid managed health care plan serving northeast, southwest and central Ohio. It is the largest Medicaid HMO in Ohio and the third fastest growing Medicaid HMO in the nation. More at www.synergycom.com
New software from Absoft: Rochester Hills-based software developers Absoft Corp. said Friday that it had introduced its ProFortran v9.2 Compiler Suite for Apple Computer's new Mac OS C version 10.4 "Tiger" operating system. Pro Fortran v9.2 provides full support for Apple's 64-bit operating system, and Absoft says that allows Fortran developers to fully exploit the entire addressable memory space of the G5 processor for the first time. The software also still supports Mac OS X v.10.3 "Panther." The software is available in single user and floating license configurations for multi-user shared resource environments. The software will begin shipping May 15. More at www.absoft.com.
Madison Heights company to resell Avaya: Madison Heights-based Intelesys Inc. said last week it had reached an agreement with Avaya Inc. (Nasdaq: AV) to begin selling Avaya's Internet Protocol voice products, which includes IP Office, the phone system designed to run over a private data network or through the Internet. Intelesys designs and implements phone systems, data networks, wireless networks and integrated systems. More at www.ivdsystems.com.
Toy challenge team about halfway there: The Sally Ride Toy Challenge team at West Bloomfield's Abbott Middle School has raised about half of its $3,000 cost toward attending the East Coast Regionals of the competition in North Carolina. The Abbott Middle School group has designed a multi-level video game that teaches the pitfalls of making poor life choices. A preliminary concept for the game, complete with storyboards, was submitted in January -- and placed in the top 10 percent of 350 nationwide entries. That earned the team an invitation to the regionals. For more information, or to help with the effort, you can e-mail teacher Mary Timmons at mtimmons@comcast.net. More about the competition overall at www.toychallenge.com.


AG moves against Vonage over 911 warning: Michigan Attorney General Mike Cox announced Friday that he had filed a "notice of intended action" against New Jersey-based Vonage Holdings Corp over its Internet-based phone service. Cox alleges Vonage has misled customers about its emergency 911 service, saying Vonage has failed to make clear that its customers do not have access to traditional 911 emergency service. "Emergency calls made through Vonage's service are often routed through call centers that may not be answered outside of regular business hours," Cox said. Cox said customers who use Vonage's service are not directed to operators who dispatch emergency vehicles. If emergency personnel do get the call, they may not be able to identify the caller's phone number or have information displaying the caller's address. Vonage has 10 days to respond to the notice, after which the attorney general's office may file a civil suit. More at www.michigan.gov/ag.
Mt. Pleasant online training company wins award: Mt. Pleasant-based DCM Associates L.L.C. said it had received one of the 2004 Best Small Business Awards from the Michigan Small Business and Technology Development Center. The companies honored were selected from among 10,000 companies the MI-SBTDC provided with confidential counseling and training last year. The businesses were chosen based on success in sales, employment and business strategy. DCM is housed within the Center for Applied Research and Technology at Central Michigan University, where it designs, develops and distributes interactive work force skills training for regulated areas such as hazardous materials handling. Owner Debby Marmarelli first sought assistance from the MI-SBTDC at Mid Michigan Community College in Harrison for help in writing her business plan. DCMA has grown from one to seven part-time employees, with projections to grow to 21 full-time employees by 2007. The company has also won $200,000 in federal grants. For more information on the Mid-Michigan Community College center, call Marie Elliott at (989) 386-6630.
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Several errors in ProQuest earnings report: I can only blame Tech Tour fatigue, but there were several boo-boos in last week's report on the earnings of Ann Arbor-based database marketers ProQuest Co. So, to wit: the earnings guidance I cited, 35 to 45 cents on revenue growth of 20 to 25 percent, is for the second quarter of this year, not the full year, and it was given for the first time on last week's call. ProQuest also reiterated its full-year guidance of $2.20 to $2.40 per share on revenue of $590 million to $610 million. Also, the company's first quarter ended April 2, not March 31. More at www.proquestcompany.com


Aastrom CEO to present at Techvest healthcare: Ann Arbor-based Aastrom Biosciences Inc. (NASDAQ: ASTM) said Friday that its CEO, R. Douglas Armstrong, will present at the Rodman & Renshaw Techvest Second Annual Global Healthcare Conference Wednesday and Thursday at the InterContinental Hotel in Paris. Armstrong will present at 7 a.m. Eastern time (that's 1 p.m. Paris time) on Wednesday. Rodman & Renshaw is a privately held investment bank. A live Webcast of the presentation can be viewed at www.wsw.com/webcast/rrshq5/astm/. Aastrom (NASDAQ: ASTM) is developing a variety of products and technologies for the repair and regeneration of human tissues. More at www.aastrom.com
Eco-Shred co-founder named to industry board: Farmington-based Secure Eco-Shred said last week that Kevin Smith, its co-founder and vice president, had been named to the board of directors of the National Association for Information Destruction, the document and information destruction industry's non-profit trade organization. NAID has worked with the Federal Trade Commission in developing the Fair and Accurate Credit Transition Act, the federal law designed to reduce the risk of consumer fraud and identity theft created by the improper disposal of consumer information. More about five-year-old Secure Eco Shred at www.secureecoshred.com. More about the trade group at www.naidonline.org.
GlimaWest sets election meet: GlimaWest, Automation Alley's membership organization for technology professionals in the Grand Rapids area, will hold an election for openings in its board, as well as for president and vice president, in a meeting Thursday. Those interested in serving should contact president@glimawest.org. The May 12 meeting will also feature two special presentations -- first, to hand out scholarships to area students who are pursuing degrees in technology fields, and second, a talk from Birgit Klohs of the Grand Rapids-area economic development agency The Right Place Inc. The event will be held at Tre Cugini, 120 Monroe Center in Grand Rapids. Registration and networking starts at 5:45 p.m., with the scholarship awards at 6:30 and Klohs' talk at 6:40. The event is free to GlimaWest members and $10 for others. To sign up, e-mail meetings@glimawest.org.

 


GL-SPIN sets May 12 meet: The Great Lakes Software Process Improvement Network will meet May 12 on "Interoperability: The Modern Approach to Software Intensive Systems." The presenter is Patricia Oberndorf, director of the dynamic systems program at the Software Engineering Institute. The event begins with networking and refreshments at 6:30 p.m. It'll be held in Room 201 of the Dodge Hall of Engineering at Oakland University in Rochester. More at www.gl-spin.org.
Verizon lets MCI deadline pass quietly: Verizon Communications (VZ) let the Friday deadline to counter Qwest's (Q) nearly $10 billion offer for MCI (MCIP) pass without floating another bid or requesting the $250 million breakup fee outlined in its merger agreement with MCI, according to a published report Sunday. MCI declared Verizon's $7.5 billion takeover offer inferior to Qwest's last week, the Associated Press reported. Qwest has given MCI until midnight Monday to switch its support away from Verizon.
University of Maryland boosts 'citizen media' projects: Proposals to create a "virtual home" for hip-hop culture in Philadelphia and to train 32 young New Yorkers to produce weekly news audio programs are among the projects chosen by "New Voices," funded by the John S. and James L. Knight Foundation. Awards to 10 "citizen media experiments" were announced by Jan Schaffer, director of J-Lab at the University of Maryland. Grants of $12,000 were made to community groups, radio stations and local newspapers that "demonstrated both the goal of applying the values of fact-based journalism in pursuit of news, and a realistic plan to find a way to keep the operation going after its launch," Schaffer said in a statement. See the award winners.
TheStreet.com to add free content: TheStreet.com (TSCM) is preparing to move some content from its paid subscription area to its free Web site. Thomas J. Clarke Jr., chairman and chief executive, announced the strategy Thursday evening during the company's quarterly financial report. Highlighting stronger Web advertising revenues, as well as a positive outlook for online ad spending this year, Clarke said "subscription revenue (for paid newsletters and RealMoney.com) probably goes down, as we move quality content over to the free site where it can be monetized through advertising." Subscription revenues, he added, have declined.

Napster for news? The Associated Press has it all wrong, according to an executive with E.W. Scripps (SSP), operator of the Food Network and 21 daily newspapers. Charging members for content, as the AP announced it plans to begin doing, is an act of self-destruction , wrote Bob Benz, general manager of print Web operations for Scripps, and Mike Phillips who is the company's newspaper division editorial director, in an article for the Online Journalism Review. They counter a better idea would be a true cooperative, much like Napster was for music, with publishers making available all their digital content to let "local operations drive cost out of their nonlocal news packages, divert resources to local Web content creation and operate on a level playing field with bloggers, citizen journalists and Internet pure plays." Sharing of content would be monitored and a balance would be necessary. "The more you make available to the network, the more you can take out," the two wrote. Phillips and Benz credit the Associated Press for recognizing the importance of the Web, but faults it because "the AP is like any business confronted with a disruptive technology. Its first inclination is self-preservation, not cannibalization." They said Scripps is ready to host an organizational meeting for such a consortium of news providers.


Bloggers search for a business model: So how do you make money with Web logs? MarketWatch says the question is being asked more frequently as bloggers-turned-entrepreneurs search for a financial reason to keep posting. Two of the latest efforts are from Roger L. Simon, the mystery author, and John Battelle, the former chief executive of Standard Media International (which published the Industry Standard magazine), who is finishing a book about Internet search. Simon hopes to launch the Blog News Service, aggregating content and selling advertising across the network of publishers. An editorial board including Web loggers Glenn Reynolds and Lawrence Kudlow is already in place. "We invite you all to join us," Simon wrote on his blog. "We would be delighted to place ads on your blog and pay you for them." Read the open letter from Simon. Battelle's venture, FMPublishing, is also in startup phase, revealing little about its business model as he searches for financing. He intends to partner only with blogs that already have their own business models, according to a report in Business 2.0. Battelle plans to offer "back-room" tech services to online publishers, as well as sell category-specific advertising on the sites. He's been providing some of this for BoingBoing.net for the past six months, and is said to be generating $40,000 a month in ad revenue. See Battelle's blog about FMPub.


 


Inmates use intermediaries to go online: Keith Maydak's jail cells are roomier than most. Must be all that cyberspace. State and federal prisons don't let inmates use Internet computers behind bars - and the Allegheny County Jail doesn't either. Yet Maydak has answered a reporter's e-mails from the Pittsburgh jail, and later an Ohio lockup, while he awaits sentencing for violating probation on a 900-number phone scam that cost AT&T $550,000. Thousands of other inmates access the Internet indirectly using inmate telephone and mail privileges and a network of family, friends or activists. Maydak, 34, told The Associated Press he uses a network of toll-free phone numbers and friends to access the Internet for him. He was inspired as a teen by the 1983 movie "War Games" in which nuclear war almost results when a teenager hacks into a military computer. And that's precisely why state and federal prisons keep inmates away from the Internet, said Joe Weedon, a spokesman for the American Correctional Association in Lanham, Md. "There were a few jurisdictions that allowed it on a limited basis, but they ran into problems with offenders contacting their victims or inmates running scams of some sort." More.


Apple unleashes Tiger: Apple Computer has unleashed the Tiger. The latest major update of Apple Computer Inc.'s (AAPL.O: Quote, Profile, Research) Mac OS X operating system, code-named Tiger, went on sale around the globe on Friday. At a cost of $129 and available at Apple's own retail stores, authorized Apple resellers and on Apple's online store, the upgrade is the fifth major refresh of Mac OS X and includes more than 200 new features. Toward the top of the feature list is Apple's Spotlight search technology, which scours the Mac computer's hard disk drive to find documents, e-mails, pictures, music and other files, similar to the way Google searches the Internet. More.


Feds find tech help in hunting financial crooks: Governments around the world have found a high-tech ally in their fight against tax cheats, money launderers, corporate crooks, and perhaps the most pernicious of all bureaucratic enemies, paperwork. The technology, a computer language developed by accountants, turns financial information into the equivalent of a bar code, allowing software to scan and comprehend information that would otherwise be left for armies of analysts to re-type and sort out. Extensible business reporting language, as it is called, is gaining a critical following inside the halls of government. Officials from Brussels to Washington have begun encouraging and requiring financial statements to be prepared in XBRL, to counter the cool reception so far in the business community. "It's the killer technology," said Michael Bartell, the chief information officer of the Federal Deposit Insurance Corp., the U.S. banking regulator, speaking at a conference on the technology held last week. "We are drowning in data. We're buying storage faster than we can cut the purchase orders." The technology affixes digital "tags" to virtually every kind of financial information, making it possible for software to spot suspicious or erroneous information and flag reports for more thorough review. While all data can be stored electronically, XBRL provides a standard structure that can be run through many types of analytical software. More.
Business inaction could lead to cybersecurity law: U.S. businesses for years have urged the government to let them set computer-security standards of their own, but their inability to do so could now prompt Congress to step in, experts say. Those who worry that regulation may stifle innovation say the business community may have already missed an opportunity to prove the government's help is not needed. More.
UM April sentiment revised down: Consumer sentiment weakened slightly in late April, according to media reports Friday of proprietary research from the University of Michigan. The UM consumer sentiment index inched lower to 87.7 in late April from 88.7 earlier in the month. Economists were expecting the index to remain flat at 88.7. The index is below the 92.6 level of March. The index has fallen four months in a row. The current conditions index rose to 104.4 from 103.9 in early April. The index was 108 in March. The expectations index fell to 77.0 from 79 earlier in the month. The expectations index was 82.8 in March
Stocks: Technology stocks rose Friday after zigzagging most of the session as investors digested mixed economic data and merger speculation. But the tech-rich Nasdaq Composite Index ended lower for a fourth straight month in the wake of the latest round of earnings that proved to be a mixed bag. The index ($COMPQ: news, chart, profile) rose 17.47 points to 1,921.65 after falling to a six-month low in the previous session. The Amex Computer Technology Index ($XCI: news, chart, profile) added 8.64 points. The Nasdaq Telecommunications Index ($IXTC: news, chart, profile) rose 0.6%, as 16 of the 20 largest index components advanced. The Amex Biotechnology Index edged up 0.58 percent to 509.07 and the Amex Pharmaceutical Index gained 1.34 percent to 331.42, following the broader market northward. The Dow Jones Industrial Average ($INDU: news, chart, profile) rose 122.14 points, or 1.2 percent to 10,192.51. The benchmark index rose 0.3 percent on the week, but fell 3 percent in the month of April. The S&P 500 Index ($SPX: news, chart, profile) rose 11 points to 1,154.
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