Microsoft is suffering something of a popularity crisis, as Google and Apple each outpace it in both revenue growth and media buzz, Randall Stross writes. While Microsoft's enterprise software sales remain strong, analysts note that growth in the consumer market draws far more attention from investors. "Tech investors pay for growth," says Goldman Sachs analyst Sarah Friar.
More than half of chief information officers surveyed by Forrester Research say they're looking to restructure their IT departments within the next three years. More than 75% of respondents said improving service quality would be their highest priority during the revamp, though containing costs is also a concern. "The frustration among senior business leaders that there must be a different way to run IT to get the flexibility and innovation they want while not going back to the pre-recession spending levels is a dilemma that fuels the interest in new models for IT," Forrester's Marc Cecere notes.
India's government debuted a $35 prototype for a computer designed for students, saying the unit's price will eventually reach $10. The Indian government will contract with a private vendor to mass-produce the Linux-based touch-screen devices, which are expected to be rolled out at Indian universities next year.
The runaway retail success of Apple's iPad is prompting rival computer-makers and other companies to embrace the tablet format. According to this report, Hewlett-Packard and Dell are indicative of the trend, as are nontraditional players such as Motorola and RIM, which are rumored to be working on their own tablets.
Oracle has issued a statement clarifying its acquisition strategy after a top leader claimed the software maker was looking to spend about $70 billion acquiring new technologies during the next five years. Such spending is "highly unlikely," Oracle said.