NEWS&ANALYSIS the buzz DEVELOPMENT IBM Rational turns to open source IBM’S RATIONAL DIVISION LAST week laid out plans to standardize its automated software quality tools on an open-source platform. Rational is standardizing the tools on the Hyades open-source software quality platform. Hyades is a subset of the Eclipse opensource development platform. The Hyades Project began in 2002 and provides an infrastructure for tool interoperability to unify software quality efforts across development projects. IBM is making its Rational testing tools Hyadescompliant. —Darryl K. Taft said the sales and channel units lost a number of people. The layoffs, which took effect June 30, represent about 3 percent of McAfee’s work force of 3,200 people. Many McAfee employees sensed the layoffs coming and began inquiring about openings at other technology companies late last month, sources said. In January, the company laid off an undisclosed number of people in its Sniffer unit, mainly due to its outsourcing efforts. McAfee has since sold Sniffer. And in May 2003, the company let go of 150 employees, including a number in the sales unit. —Dennis Fisher EXECUTIVES Ballmer optimistic but cites issues SECURITY More layoffs at McAfee MICROSOFT CEO STEVE BALLMER MCAFEE HAS LAID OFF ABOUT 100 employees from several groups— its third round of layoffs in the last 14 months. Last week, the security software vendor changed its name from Network Associates. Sources close to the company told staffers in his annual e-mail update last week that he is “excited” and “incredibly optimistic” about the future but that he wants to refocus on the company’s culture, values and accountability. “Nothing breeds confidence like success—success in the hearts and minds of our customers, and quarter, which ended June 30. success versus competitors, be The company said it anticipates they established, open source or poorer-than-expected earnings, startups,” Ballmer wrote. “We thanks in large part to Oracle’s must continue to compete as $7.7 billion bid for PeopleSoft. relentlessly as ever, while also For the past year, PeopleSoft reflecting our industry leadership has been resisting Oracle’s hostile responsibilities.” takeover attempt, a bid the U.S. Ballmer addressed Microsoft’s Department of Justice seeks to vision of “integrated innovation” block through a federal injunction. and how this would A ruling isn’t explay out in the next pected for at least generation of Wina month. dows products, The company code-named Longexpects to report horn. Integrated on July 27 total innovation, he said, revenues of $655 is about an experimillion to $665 ence in which a million. Software customer using license revenues Microsoft products are expected to be together gets a $129 million to Ballmer: It’s time to renew whole greater than $133 million. Microsoft’s core values. the sum of its parts. PeopleSoft CEO “It is not about creating techni- Craig Conway said in a statecal dependencies across groups ment that he blames Oracle. for their own sake. Longhorn will “Although we have been able be another major step forward on to meet or exceed our financial which we can add value to cusprojections since Oracle launched tomers through integration,” Balltheir hostile tender offer more mer said. —Peter Galli than a year ago, the extensive publicity of the antitrust trial during the last month of our quarter FINANCIALS was impossible to completely overcome,” said Conway, adding that he expects that business will return to normal once the trial is over. PEOPLESOFT LAST WEEK ANNOUNCED preliminary results for its second —Renee Boucher Ferguson PeopleSoft warns on Q2 earnings BY THE NUMBERS Security dissatisfaction WHAT ARE YOU MOST DISSATISFIED WITH IN YOUR CURRENT NETWORK SECURITY SOLUTION? Vendor’s customer service responsiveness QUOTE OF THE WEEK It’s time for an entirely new regulatory framework for Internet communications. Product reliability 18 e W E E K n J U LY 1 2 , 2 0 0 4 10% 11% 37% Scalability Price Rep. Rick Boucher, D-Va., who introduced a measure on advanced Internet communications services last week VAR’s customer service responsiveness 5% 16% 21% Ease of installation and/or management Source: Sage Research survey of 109 professionals who have responsibility for network security from U.S. businesses with more than 100 employees w w w. e w e e k . c o m