11-10-2004 • VOLUME 7 • NUMBER 38 • £2.60 WWW.ITWEEK.CO.UK 18 ENTERPRISE HP ProLiant takes 64bit path 27 INTERNET Load testing saves Big Brother’s money 29 CLIENT Wireless PDAs link to more Windows apps CONTENTS ENTERPRISEWEEK The latest multifunction printers 17 Where is Sun going with servers? 18 Softek updates Storage Manager 20 INTERNETWEEK Toolset to improve e-trade sites 23 Are e-traders failing in delivery? 24 CLIENTWEEK Email suite challenges BlackBerry 29 Multimedia creeps into the office 30 Palm OS set to focus on phones 30 NETWORKWEEK Smart SSL VPNs ease deployment 33 3Com increases options for VoIP 33 Wireless guardian layers security 34 MANAGEMENTWEEK Tips for process control systems 39 How to make IT auditing easier 40 Xerox’s CEO plots services path 40 Mergers reshape software Martin Veitch NEW WORLD ORDER he face of enterprise software looks set to change, as larger vendors last week revised their strategies and more mergers loomed – the next could be victory for Oracle in its PeopleSoft bid. Obstacles to the PeopleSoft deal are rapidly falling away. Last week, the EC said it would complete its antitrust review by 9 November and PeopleSoft director Steven Goldby said a deal could be wrapped up quickly if Oracle raised its offer. After 16 torpid months, in recent weeks the US Department of Justice said it will not pursue antitrust objections, the EC indicated it will not oppose the combination, and PeopleSoft removed its chief executive, Craig Conway, who was against the deal. However, Goldby said Oracle’s offers have been too low. According to Philip Carnelley of analyst Ovum, investors may feel that Oracle can be persuaded to raise its bid once again. “PeopleSoft licence sales have increased. Ultimately, we believe Oracle’s bid will succeed,” he added. IT suppliers plot survival routes Get Big: Oracle, HP, Symantec, RSA T Get Niche: Siebel, SAS, Xerox, Lawson Get Bought: Brightmail, Commerce One, Netegrity Another suitor could yet step in – perhaps IBM, Microsoft or HP – but Oracle looks likely to seal the deal early next year. Such major shifts in power could hurt some customers but all signs suggest IT buyers will have to stick with the IT giants or prepare for changes among suppliers. Consolidation is also on the cards elsewhere. Computer Associates last week agreed to buy Netegrity for about $340m; and RSA Security said that it is in the market for purchases.“I look at us as a potential consolidator,” said chief executive Art Coviello.“We’ve got a very strong portfolio in identity and access management so we’d go for consolidation of smaller players in this segment.” CRM giant Siebel plans to acquire front-office tools and push into business intelligence. And Microsoft chief executive Steve Ballmer reiterated plans for more acquisitions, while appearing to rule out reopening talks with former target SAP. SAP spokesman Bill Wohl confirmed that talks with Microsoft had ended. While SAP would consider buying smaller firms, its main focus would be on developing and selling its own products. “We’re seeing a great deal of uncertainty about the future, and customers want safety,” said Wohl. However, a minority of companies are trying to retain their focus. SAS Institute, the largest private software firm, last week restated its intention to stay clear of the public markets; while one-time Oracle target Lawson Software hopes to remain an alternative to bigger enterprise application vendors. “It’s only the boys in Walldorf [SAP] that are rubbing their hands with glee about Oracle-PeopleSoft,” said Art Cooke, SAS international president. CA buys Netegrity, p4 Siebel, p8 Lawson, p8 Xerox, p40 Last Word, p42 PDA Flashes up to 256MB IT buyers go to court PalmOne’s Tungsten T5 handheld, due next month, has 256MB of built-in Flash memory to enable users to carry more documents and files.The PDA can also dou XScale ble as a Flash drive for a chip will PC.The £280 + VAT device power T5 has a 320x480 colour screen, a built-in Bluetooth transceiver and runs Palm OS 5.4. Palm Tungsten gets Flash, p29 Palm OS, p30 www.palmone.com ontractual disputes between IT suppliers and customers are increasing, and the cost of claims has more than doubled in the past three years, IT managers were warned this month. “Firms’ risk management procedures have struggled to keep pace with Britain’s burgeoning compensation culture,” said Stephen Wares, UK manager of insurance specialist Hiscox, speaking at a recent IT risk management event. Lawyers advised firms to clarify expectations before signing contracts. Many are agreeing terms that do not detail what should David Neal C be delivered, or the criteria for judging successful delivery, delegates were told. IT suppliers and customers are likely to expect too much of each other – and clients’ expectations are especially likely to be too high. Speakers said buyers must do more to scrutinise proposed contracts before agreeing deals. If projects go wrong, firms could find it hard to obtain compensation unless they have been care Ferguson: agree acceptable risks Showtime for storage Microsoft will give the first UK demonstration of its Data Protection Server at this week’s Storage Expo show. Running at London’s Olympia from Wednesday, the show will also feature presentations by services firms KPMG and Capgemini on topics such as data storage and the law. Veritas will reveal new research on how firms are implementing disaster recovery systems. Other corporates, including finance firms Egg and Abbey, will offer their experiences. Products on display will include Tandberg Data’s StorageLoader VS160 autoloader and 440LTO tape drive, and Exanet’s fully-integrated networkattached storage (NAS) system. Security will also be a focus at the show. Networking specialist Cisco will host a session taking a holistic look at storage area network (SAN) security. LTO, p6 EMC, p10 Comment, p15 SANs, p20 www.storage-expo.com ful in drawing up contracts, said IT lawyer George Gardiner. “Courts are much more technologically aware now and will ask questions of the client such as, ‘Why haven’t you done more checking?” he added. “If you’ve done a bad deal it may well be your fault.” To avoid costly and complicated litigation, both sides need to approach contracts with a much higher level of understanding, and set realistic expectations. Alan Ferguson of project consultancy AFA said agreeing acceptable levels of risk increases the chances of projects succeeding, and can avert costly legal action.“Firms should ask, ‘Does the project have to deliver all the benefits or can we cut the scope?’” he said.“You have to understand how badly you can build something, not how well.” Check the small print, Leader, p12 NEWS INSIDE: MIDDLEWARE Advances, p4 • DSL Trends, p4 • CRM Latest, p8 • VOIP Uptake, p8 • SMARTPHONES Symbian, p8 • THIN CLIENTS Wyse, p10