Low Cost Computing

Computers have never been so cheap: it's a fact. My first PC, a 486 running at a massively fast 33mhz, came with DOS 6.0 and Windows for Workgroups 3..1 This set me back £1000 and I had a couple of trips back to the little trading estate that put it together for a few hardware issues and some TLC, which I got in spades.

A quick look at the internet now and you will find hundreds of online companies selling mostly the same branded computers. All very cheap and 100's of times faster than my original computer. £500 will buy you a very good computer, £1000 will get you a good gaming machine.

A laptop back in the day was just a dream and the closest you could get came in a suitcase. Now portable power can cost as little as £299 and fits into a small brief case.

So why the dramatic cost reduction in computing costs? First the obvious: better production techniques producing low cost components in higher volume are part of the picture. The most significant reduction of costs has come from price wars. The big manufacturers have been pitching against each other and pushing down the costs of their computers so now margins are tiny for the manufacturers.

This means low cost computers and everybody is happy, but the bigger picture may not be as rosy as it seems on the surface. The cost cutting means there is very little margin for good quality customer support, even from the traditional high end manufacturers. This results in overseas call centres, and computers that ship with no rebuild disks, instructions or setup guides relying on hard disk based rebuild tools and manuals, which most users will overlook.

Be happy with your low cost computer purchase but remember that TLC is no longer included in the price. Where do you find TLC? That's our job.

By Grant Peck

Analyst slams UK iPhone strategy

Analysts have described Apple's iPhone strategy in the UK with carrier O2 as "inadequate " and likely to "frustrate a lot of users".

Martin Garner, director of wireless intelligence at Ovum, criticised Apple for not making alterations to the device in light of feedback received since its launch in the US, most notably the non-removable battery and lack of 3G.

Apple chief executive Steve Jobs claimed at the UK announcement yesterday that the lack of 3G was down to the heavy power draw of the chipsets, which would dramatically reduce the battery life of the phone.

However, Garner maintained that European users are accustomed to very good coverage and will require excellent Edge and Wi-Fi coverage if this is not to be a problem.

O2 has promised just 30 per cent Edge coverage across the UK at the iPhone's launch on 9 November.

"AT&T was heavily lambasted as the weak link in the chain when the iPhone started shipping in the US earlier this year. O2 looks to be heading for the same fate here," said Garner.

"O2 said that its research shows that up to two thirds of iPhone usage would be on Wi-Fi either at home or out and about.

"Certainly the [hotspot] deal with The Cloud is good for users and will help in urban areas and in people's houses, but it will not mean much in rural areas."

Garner's predictions were not all doom and gloom, however. "The tariffs look sensible. It is good to see O2 using unlimited data plans, and it promised that unlimited data would be made available on its other contract plans shortly," he said.

"One small niggle is that many users will have to accept fewer voice minutes than their existing £35 plan, or buy a more expensive plan, if they want to use an iPhone."

Garner listed the important factors that need to be considered when it comes to the deal between O2 and Apple:

• How much is this all costing O2 and how long will it take to break even? This will be of great interest to the City ahead of wider European launches due from Q1 2008
• Steve Jobs said that the choice of O2 was cultural more than economic. Yet we understand that it is not using O2 in Germany, and is using a different carrier again in France. Something does not ring true here
• Various handset vendors have started producing user interfaces that head in the direction of the iPhone, and it looks as if a new device segment will emerge with the iPhone heading the charge. But how big is this segment and how competitive will the other vendors be?
  

By Ian Williams

37% of second-hand discs contain sensitive data

Nearly four out of 10 second-hand disc drives contain information that could embarrass former owners and leave them open to civil and criminal prosecution, according to research by BT.

Researchers bought 300 discs in the UK, Australia, North America and Germany from computer auctions, computer fairs and online.

Analysis revealed just more than 37% contained data such as salary details, company financial data, bank and credit account details, hospital records, pornography, visa applications and online purchasing details.

Similar analysis in 2005 put the figure at 52% and 2006 put the figure at 34%. both organisations and individuals were exposed to a range of potential crimes. These organisations had also failed to meet their statutory, regulatory and legal obligations.

Andy Jones, head of security technology research at BT, who led the research, said it was hard to understand why companies were not destroying data properly, given awareness of the problem and suitable tools.

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Microsoft signs patent deal with integrated circuit supplier

Microsoft and integrated circuit and electronic system firm Cadence Design Systems have signed a patent cross-licensing agreement.

Cadence will use the agreement to build systems using Microsoft research and development, and Redmond will use the agreement to further its moves in the hardware device market.

Microsoft said the two companies' exchange and implementation of patented technologies will span many areas and give both firms greater freedom to innovate.

Since 2003, when Microsoft said it was "open for business" on IP (intellectual property), Microsoft has signed cross-licensing agreements with Cisco Systems, LG Electronics, Samsung Electronics, NEC, Seiko Epson, Siemens, SAP and Toshiba.

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EU think-tank floats OS bundling ban

A Brussels think-tank has proposed that the European Commission block vendors from pre-installing operating systems with new PCs.

According to the Globalisation Institute, the practice of bundling an operating system with a PC furthers an anti-competitive market by allowing Microsoft to make its software the de-facto operating system on nearly all PCs.

"Microsoft's dominant position is not in the public interest," wrote Globalisation Institute president Alex Singleton.

"It limits the market and has slowed technical development to the prejudice of consumers."

Singleton claims that Microsoft is able to win over consumers by default, pre-installing its software on so many PCs that users are never properly made aware of the alternatives.

Customers may very well have chosen these alternatives instead of Windows if given the chance, according to Singleton.

To remedy the situation, Singleton proposes that all PCs be sold free of a pre-installed operating system.

This will allow rival operating systems, such as Linux, to openly compete with Microsoft on a much more level playing field.

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