Editor's note: Russ McGuire is the online director of Business Reform Magazine. Each issue of Business Reform features practical advice on operating successfully in business while glorifying God.
A number of readers have written asking that I provide follow-up on topics I've discussed since the beginning of the year. To satisfy that curiosity, I'm devoting this week's column to that end. So, without further ado, here's the latest on Apple, TiVo, IBM, MCI, Oracle, and taxes.
Apple's Seeds Choked By Weeds (January 21)
What I said: Apple Computers is back in its classic form: introducing lots of really cool technology products and losing money. Apple should be great. And profitable. Instead, the seeds of brilliance keep getting choked out by the weeds of commodity products.
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What's happened since: Apple's biggest news has been the extremely successful launch of the iTunes service. Consistent with its legacy, Apple has taken a good idea, wrapped it in great design, great engineering, and an immeasurable coolness factor to establish the first mass market success in the category. Predictably, dozens of other companies have jumped on the bandwagon, learning from Apple's success, and are racing to commoditize the market. Oh, by the way, Apple continues to struggle financially.
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Taxing the Internet dry (February 18)
What I said: In November, the National Governors Association took up the banner of Internet sales taxes. Thirty-eight states have joined the campaign. There's even some rumbling of threatening online retailers to start collecting taxes now or face retroactive tax payments in the future. With challenges like these hanging over their heads, retailers will be fleeing the Internet faster than rats from a sinking ship.
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What's happened since: Many states have been working on legislation to enable the collection of sales taxes online. However, federal level approvals seem to have stalled for now. But, to be safe, many online retailers have already started collecting the taxes. Of greater concern, the European Union has already implemented a "sales tax" specifically aimed at non-EU retailers. It's unclear how the EU will be able to enforce this tax.
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Give me back my TV! (February 26)
What I said: I can hardly watch television anymore. The programming is bad enough, but it's the commercials that have driven me away. Thankfully, technology may provide the answer. Or it may not.
What's happened since: In April, ReplayTV was purchased out of bankruptcy by D&M Holdings. In June, the company announced that ReplayTV products would no longer support the commercial skipping feature that has made it such a wonder for my family. Meanwhile, also in June, TiVo announced that it would be monitoring how its customers use the TiVo product and will create a for-pay service to deliver that information to television networks and advertisers.
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Feds salivate at regulating e-mail (May 12)
What I said: Yes citizens are up in arms about SPAM. And they should be. But let's arm those taxpayers with competitive solutions from which they can choose to effectively defend their own homes and businesses rather than spending their taxes to build an army incapable of even slowing the attack.
What's happened since: Several states have joined the parade of anti-spam legislation and the federal level efforts have only been slowed by battles among legislators to grab the spotlight.
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Will regulators kill wireless? (May 19)
What I said: Have you enjoyed your wireless phone? Do you like the freedom to make and receive calls anywhere, anytime? A big part of our sense of freedom comes from the great pricing that wireless carriers have been able to offer and have been forced to offer because of the competitive environment. However, the Federal Communications Commission (FCC) doesn't seem to think there's enough competition in wireless, and their actions are likely to torpedo the incredible rates we've all been enjoying.
What's happened since: Attempts by the wireless industry to derail the FCC's requirement for number portability have failed and carriers must implement the capability by November 24. Some carriers have now jumped from attacking the increased regulation to embracing it in hopes of gaining customers. The impacts on pricing and customer satisfaction cannot be judged until early next year.
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SCO/Linux war gets ugly (June 3)
What I said: SCO has filed a $1 billion lawsuit against IBM, claiming that IBM broke a contract and included intellectual property now owned by SCO into the open source Linux operating system. Novell and Microsoft jumped into the fray, one on each side of the battle.
What's happened since: In mid-June, SCO increased the amount it was seeking from IBM to $3 billion. The company also stepped up its attempts to collect licensing fees for its intellectual property by targeting corporate users of Linux – effectively squeezing revenue from companies SCO has never been able to sell to by threatening them with future down-time or litigation. Meanwhile, the company has failed to convince the technical community that there is any merit to their suit.
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Worldcom's deadly culture (June 17)
What I said: In 1995 I briefly worked for the company that would become WorldCom. What I saw scared me and within 2 months I had left to launch an Internet startup. This past week's detailed reports on the behavior that sent the company into bankruptcy brought back those memories, as the culture that I experienced is clearly the main culprit in the crimes that have brought down this once-mighty power. New CEO Michael Capellas' failure to identify the fact that the very nature that has been bred into his organization is at fault may keep the newly christened MCI from emerging intact from bankruptcy.
What's happened since:The company appeared to be on track to exit from bankruptcy. However, a new scandal has emerged. It appears that the company has historically doctored phone records to avoid paying some of its vendors. This would require the support of engineering and operations individuals.
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Oracle: Time for Ellison to go (June 23)
What I said: Just when I thought SCO/IBM would dominate the summer stage, along comes the hateful dance between Oracle and PeopleSoft. From watching all this silliness, one might get the impression that technologists are greedy goons completely lacking in social graces. As I've pondered Oracle's situation, it has become clear that Larry Ellison, the software company's egotistical CEO, has finally gone too far. In reflecting on Ellison's life, perhaps this is the beginning of God's wrath that humbles the mighty and destroys the unrepentant.
What's happened since:PeopleSoft completed its acquisition of J.D. Edwards and reported surprisingly strong quarterly results, largely driven by a bitter poison pill offer to customers. The Department of Justice continues to look at the proposed merger to see if it represents an Antitrust issue. Oracle has increased its bid for PeopleSoft to reflect the value of J.D. Edwards, but few stockholders seem to be taking the offer. Oracle has also backed away from its initial statement that it would cease development of PeopleSoft products following acquisition.
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- Oracle's Suit Against PeopleSoft Postponed
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- Duct tape for Larry Ellison
In summary, the technology industry remains as messed up as the rest of the business world, scandals take months or years to work themselves through, and nothing man can offer, from increased regulation to open source software brings true salvation. Stay tuned.
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Russ McGuire is Online Director for Business Reform. Prior to joining Business
Reform, Mr. McGuire spent over a dozen years in the telecom industry, serving as Chief Strategy Officer for TeleChoice and Vice President of Strategic Development for Williams Communications, among many other roles. Mr. McGuire is currently focused on helping businesspeople apply God's eternal truths to their real-world business challenges through Business Reform's online services.
