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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: George Schulte who wrote (46563)	1/16/2002 11:45:47 PM
From: stockman_scott	Read Replies (2) \| Respond to of 65232

Microsoft Announces Strategy Shift Wednesday January 16 10:42 PM ET By D. IAN HOPPER and TED BRIDIS, WASHINGTON (AP) - Microsoft Chairman Bill Gates (news - web sites) announced a major strategy shift across all its products, including its flagship Windows software, to emphasize security and privacy over new capabilities. In an e-mail to employees obtained Wednesday by The Associated Press, Gates referred to the new philosophy as ``Trustworthy Computing'' and said his highest priority is to ensure that computer users continue to venture across an increasingly Internet-connected world. Gates compared the significance of his 1,600-word message, sent Tuesday, to his so-called ``tidal wave'' e-mails during the mid-'90s, which changed the course of Microsoft, and much of the software industry, to focus its products on the Internet. He said this new emphasis on security for Microsoft was ``more important than any other part of our work. If we don't do this, people simply won't be willing - or able - to take advantage of all the other great work we do.'' ``When we face a choice between adding features and resolving security issues, we need to choose security,'' Gates continued. ``Our products should emphasize security right out of the box.'' The dramatic change comes after the discovery of major security problems in Microsoft products, such as flaws in the latest versions of Windows that allow hackers to seize control of a user's computer. Another problem allowed the Code Red viruses to cripple hundreds of thousands of computers running Microsoft products. ``Gates saying that security needs to come before features is a huge statement for the software industry, not just a huge statement for Microsoft,'' said Marc Maiffret, the founder of eEye Digital Security Inc., which discovered both the XP flaws and the Code Red viruses. ``If anybody has the ability to shape the software industry, he's the man.'' David Smith, vice president of Internet Strategy at Gartner Inc., an analysts firm, welcomed the move but said the strategy shift may be coming too late. Smith faulted Microsoft for developing broad, Internet-based strategies without paying enough attention to security. ``It's about time, perhaps overdue,'' Smith said. In the e-mail, Gates also referred to the Sept. 11 terror attacks as a reason to focus on security. He noted that last year's events ``reminded every one of us how important it is to ensure the integrity and security of our critical infrastructure, whether it's the airlines or computer systems.'' Other Microsoft executives declined to comment late Wednesday. Shares of Microsoft were down $1.68 Wednesday to close at $67.87 on the Nasdaq Stock Market, but they gained 38 cents in extended trading. Microsoft products can be found in almost every government facility, from the White House to aircraft carriers at sea. One person with knowledge of the change said new products and features will be tested for security risks before going any further - if they fail, the feature won't be included. ``Things are going to have to go through a crucible, and the crucible will be security-first,'' according to this person, who spoke only on condition of anonymity. Compensation plans of Microsoft product engineers, such as raises and bonuses, will also be tied to how secure their products are. Russ Cooper, a security expert with TruSecure Corporation, said the change occurred in part after a new security team assigned to attend every product meeting met resistance from product teams. Microsoft has long been criticized for focusing on making products more feature-rich rather than emphasizing security and stability. For example, Windows XP (news - web sites) added DVD player-software, a rudimentary Internet security utility and a new instant messaging program. Customers could also see a downside, though. Other than fewer new features, product upgrades could come less frequently or could be pushed back. Privacy is also a focus. ``Users should be in control of how their data is used,'' Gates wrote. ``It should be easy for users to specify appropriate use of their information including controlling the use of e-mail they send.'' - On the Net: microsoft.com _______________ Regards, Scott btw, George I am very comfortable with RBAK long-term...Part of my shares I will position trade but will monitor things. IMO, the company is executing well in a tough environment. As RBAK's new SmartEdge router starts to get more traction throughout the year we should see increasing sales and margins. It will be interesting to see what the ANALysts have to say after the conf. call. We were up every day last week so we were due for some consolidation in the $5-6/share range. Good luck investing...=)

To: George Schulte who wrote (46563)	1/17/2002 9:15:22 AM
From: Bocor	Read Replies (1) \| Respond to of 65232

Redback downgraded despite in line Q4 Redback Networks (RBAK) is sliding 68 cents, or 12 percent, to $5.18 in pre-open trading, after the maker of equipment for high-speed networks reported fourth-quarter results late Wednesday. Although losses and revenue for the period were roughly in line with expectations, analysts from Morgan Stanley and WR Hambrecht followed by downgrading the stock, citing valuation. Morgan's Christopher Stix cut his rating to "neutral" to "outperform," and raised his 2002 and 2003 loss estimates to 58 cents a share from 50 cents a share and 23 cents a share from 7 cents a share, respectively. He believes the stock is already reflecting fair value. WR Hambrecht's Tim Savageaux downgraded the stock to "neutral," from "buy," as the stock had already "eclipsed" his $5 price target.

To: George Schulte who wrote (46563)	1/17/2002 10:12:03 AM
From: stockman_scott	Read Replies (1) \| Respond to of 65232

Redback Networks Reiterated `Strong Buy' at Wells Fargo By Steve Fohring 01/17 09:33 Princeton, New Jersey, Jan. 17 (Bloomberg Data) -- Redback Networks (RBAK US) was reiterated ``strong buy'' by analyst Chester White at Wells Fargo Securities, LLC. The target price is $10.00 per share. Earnings estimates: Period Previous estimate New estimate per share (USD) FY 2002 (0.28) (0.50) FY 2003 (0.08) ____________________________________ Tough to figure out the RBAK today....getting quite a pullback...have 2 Downgrades and 2 Upgrades....Lots of confused investors...I expect the stock to be volatile and then slowly rebuild. I have been in RBAK for a while and have buying on the dips since it was under $3...Just bought more this morning...=) Regards, Scott