• BBFoomp Update.
  
• tcl-bb 2.4.8.2.
  
• BBInterface Updates.
  

• xPaintClass Testing Modules Beta State!.
  

• REAPER v0.976.
  
• Butler 4.1.2.
  
• k23 productions Team update.
  
• 5th kCon Notes.
  
• Gimmie 0.1.1.
  
• FileZilla 2.2.25.
  
• Miranda IM v0.5 Test Build #59.
  

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• SharpE:
  
  
  
  • SharpE Beta Release - 0.7.0.1.
    
  
  
• Litestep:
  
  
  
  • xPaintClass 1, 2, 3, 4, 5.
    
  • Losi Theme Contest at ls-themes.org.
    
  
  
• BB4Win:
  
  
  
  • BBInterface 0.9.89.
    
  • bbFoomp 1.5, bbFoomp 1.6.
    
  
  
• Geoshell:
  
  
  
  • Future Development Goals forum thread.
    
  
  

• Inkscape 0.44.
  
• VLC Media Player 0.8.5.
  
• ScummVM 0.9.0.
  
• Opera 9.
  
• Crystal Cursor 0.2alpha.
  

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For one thing, we're no longer owned by Microsoft, which for some reason seems to make it easier for us to build a site that works as well in Firefox and Safari as it does in Internet Explorer. And now that larger computer screens and broadband have become commonplace, we felt Slate could do more to take advantage of both. The new home page, for example, is wider than the old one and has graphics so numerous that a dial-up modem would have choked on them. We've used the additional real estate to give permanent homes to Explainer, the Has-Been, Doonesbury, Today's Pictures, and our editorial cartoons[~]regular features that have sometimes been hard to find.

I have learned a lot during the last two weeks while visiting six countries. One of the most interesting days began with a flight from Pulkovo Airport in St. Petersburg to Sheremetyevo Airport in Moscow. The Russian airports could use some upgrading of services, shopping facilities, and direction signs in English, but they are said to be quite safe. Boarding the Ilyushin-86 aircraft was an experience. Like many European airports, the first step is to ride on a bus across the tarmac to the plane. What was different was the entry -- it started by going up steps into the belly of the plane where luggage is stored. From the storage area a stairway led to the main cabin where there were approximately 350 seats arranged in three sets of three per row.

The Il-86 development was announced at the 1971 Paris Airshow and the wide-body entered service in late 1980. This particular IL-86 was showing it's age and may easily have been twenty-five years old. The interior of the plane and the uniforms of the flight attendants were outdated but the service was efficient and friendly. The four Kuznetsov NK86 turbofan jet engines lifted the plane to cruising altitude very quickly for the one hour trip. The flight to Moscow and the return to St. Petersburg both left on time and arrived at the destination on time.

The afternoon at the Kremlin far exceeded my expectations. Kremlin means "fortress" in Russian and generally refers to any major fortified central complex in Russian cities. The one we visited is the best known one, the Moscow Kremlin, where the Russian government is based and where the President of Russia lives.

Standing in the center of Red Square was a real treat with spectacular sights in every direction. Saint Basil's Cathedral and the Kremlin towers are majestic and incredibly colorful. The Red square separates the Kremlin from an historic merchant quarter and the major streets of Moscow radiate from the square in all directions. The square is steeped in centuries of history. I don't recall the famous events that took place there in 1941 and 1945 nor the establishment of Lenin's Mausoleum, but I do remember when a German pilot named Mathias Rust landed a rented Cessna 172 on Vasilevski Spusk next to the Red Square in 1987. On the eastern side of the square is the spectacular GUM department store which in addition to shops offering all the top retailing brands of the world had dedicated the first floor of huge open ceiling building to the inventions of Leonardo Da Vinci. It would have been easy to spend a whole day there.

Following a one-hour tour of the Kremlin art galleries -- which rival the Vatican Library in Rome -- we had a traditional Russian dinner, complete with vodka, and then a return flight to St. Petersburg. We got back to the ship after midnight. It was a day I will never forget.More on the rest of the trip to follow.

One of the many innovations Sam Palmisano has spearheaded at IBM is the idea of reaching out to "alumni". The first initiative was a few years ago when he started a semi-annual reception for executives and former executives of the company. That was just the beginning and now the idea of reaching out has been opened up big time. The number of past and present IBMers is probably close to a million people. Establishing communications with such a huge base can be nothing but a good thing for the company.

When I left engineering school and joined IBM in 1967, it was common to look for a job at a company and expect to stay there your entire career. Nobody thinks that way anymore. If you tell someone you were with a company for decades, they might ask "what's the matter, couldn't you find any other jobs?". Another change is in the old days if someone left the company they were considered a traitor and barred from coming back. Today, there are many executives that left the company at some point, got some experience at one or more other companies, and then brought that experience back into IBM.

The Internet has enabled everything to be connected to everything, so setting up a blog to "connect" past, present, (and maybe future) IBMers to each other and with the company seems like a very good idea. The The first step was the Google Group, the logical step two is the new Greater IBM blog. Over time other forms of web technology such as wikis, audio and video podcasts, instant messaging, and various mobile technologies will likely enter the mix.

The possibilities are endless -- collaboration on projects, personal networking for jobs and deals, referrals to and from IBM, and social networking for the fun of it. I look forward to being part of this as it evolves. Upon e-tirement in 2001 with nearly four decades at IBM, I don't really feel like I left anyway! Feel free to visit patrickWeb. There are a number of categories that I have been writing about for more than ten years. Things related to IBM are at this site, I am sure I will be writing about and linking to the Greater IBM blog as will others. Cross linking will increase the overall "connectedness". That's what the web is all about. I am really proud that IBM is taking the blogosphere so seriously.

Greater IBM Blog
Greater IBM on Google Groups
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This week I attended an IBM software technology briefing about SOA. Only brilliant technical people could come up with SOA as a name for something. Let's see, is it safe operating area, School of the Americas, Skies of Arcadia (a Nintendo game), Society of Actuaries, state of the art, or the Sarbanes-Oxley Act? Nope. Maybe it is about an architectural firm that has great customer service? Or maybe it is about the architecture of a building that has a good service entrance? Neither. The SOA of the briefing stands for "service oriented architecture". It is really important. The wikipedia has a comprehensive definition of SOA but basically it is about a new way to get things done with software. Actually it is isn't new -- the idea has been around for decades -- but now it is really happening. It is so much a part of the vernacular at IBM that they just matter of factly call it "so a". After an IBM briefing about "virtualization" a year ago, I tried to explain the word in simple terms (see Virtually Real or Really Virtual). I'll try that approach here with SOA.

In a nutshell, SOA will allow web sites to do much more than “click here to buy”. In fact web sites built with SOA will result in us standing in fewer lines in the physical world and have to endure fewer telephone call centers that want to control us. Fulfillment models at our favorite retailer’s web site will result in the staple goods we need just showing up outside the garage door when we need them. If businesses have the right attitude, SOA will enable them to get closer to the ultimate Internet -- to build a people-oriented and user-friendly integrated experience for all parties involved - employees on the intranet, suppliers, customers, partners, analysts and prospective constituents. There is more to this story. (read more)

The month of May was filled with a slew of IBM announcements in hardware, software, services, acquisitions, and corporate initiatives. I am particularly excited about IBM's leadership with OpenAjax. There are a few skeptics emerging and that is how I know that Ajax is sure to be a really big thing. It will change the Internet experience for all of us more than anything so far. Here are all the announcements made by the company during the month. The complete index of prior IBM Happenings is here.

The overnight flight to Oslo was uneventful and the weather on arrival Monday morning was as rainy as it was leaving New England -- Norway is 59 degrees north latitude (and ten degrees east longitude) so it is not too far north of home. Opera Software is a short cab ride after taking the clean and comfortable train from the airport to central Oslo.

After the board proceedings a some follow-on meetings, it was time for a taxi ride to the Holmenkollen Park Hotel where a special dinner would be held for my friend and Opera chairman Christian Thommessen who will be leaving the board to take on an important position as a diplomat at the United Nations Development Program at U.N. Plaza in New York. I am sorry we will be losing him from the board but am happy that he will be putting his time and energy into some really important work and also that he and his family will be close enough for more frequent visits.

During my last trip to Oslo in February, I was determined to find the "Troll's View" geocache which is hidden across the street from the world famous Holmenkollen Ski Jump. The first jumps at the "Holmenkollrennet" took place in January 1892. The world's skiing elite meets at Holmenkollen every year and 50,000 spectators watch the jumps from the 180 feet high spectacle. The view of Oslo and the fjord below is breathtaking. The cache is in the woods near the famous Kollen Troll but it was so cold and there was so much snow and I was not dressed for the hunt. I finally had to give up.

Yesterday when I got to Holmenkollen, the rain had stopped and the weather was perfect. I remembered where to have the taxi stop to wait for me. It did not take too long to follow the needle into the woods and find a blue bag hanging in a tree exactly at the latitude and longitude where it was supposed to be. I signed the logbook and headed back to the taxi and on to the hotel. It was a late but delightful evening with my colleagues from Opera Software. Results for the first quarter were posted during the day.

Technology writer, Peter Svensson, wrote an interesting story called "Will video break the Internet?". From a technical point of view there are many factors to consider. If a large number of web "surfers" were using the Internet as their primary way to watch TV, there would be a problem. More capacity is clearly needed, especially as HD-TV becomes more prevalent. The pessimists -- and some telecommunications operators -- see rising fees to pay for the bandwidth expansion. Optimists know that various technologies such as multicasting, caching, digital video recorders, etc. are dramatically improving the Net's ability to deliver video content and in parallel the cost per unit of technology continues to decline. History would suggest the optimistic view is the right one.

During the 1996 Olympic Games in Atlanta there was a bomb blast. Native Atlanta ex-patriots living in Japan and Germany and other parts of the world wanted to get as much news coverage as possible about the status but had few choices (there were no blogs then). The Internet Technology team at IBM in Southbury, Connecticut was running a large web infrastructure for the Games at the time and one of the engineers, Andy Stanford-Clark, got the idea to "stream" a local Atlanta radio station over the Internet using an IBM technology called Bamba. It was a very successful project but only a handful of people could listen simultaneously due to the limitations of the technology and the Internet. Some people thought that if there were large numbers of listeners "audio would break the Internet". Today millions of people consider audio over the Net as commonplace. (Listening to crystal clear classical music from KUSC-FM in Los Angeles through my Sqeezebox as I write this). Based on the tens of millions of daily visitors to YouTube, it is clear that video has also become commonplace. Another leading indicator is what is happening on campus. A number of universities have decided to use the Internet to deliver cable TV to their dormitories.

One of the issues Mr. Svensson raised in his story is "net neutrality", a term that means different things to different people. The fear is that the really large telecommunications companies that provide parts of the "backbone" of the Internet may decide to not only raise fees but also to be discriminatory. In the extreme it would mean that Verizon would block access to Google because they made a deal with Yahoo! or visa versa. The telcos have never been successful in getting into the content business so a new angle for them might be to make deals with content providers that would make their video move through the Internet backbone at a higher priority in return for fees. These fears have gotten the attention of lawmakers who are now talking about legislation to insure net neutrality. Legislation is the worst possible way to address the issue.

What is really needed is more competition. In Japan, the Internet service available to consumers is significantly faster than in the U.S. and significantly less expensive. For example, Yahoo! Broadband offers 8 million bits per second for about $20 per month. Up to 100 million bits per second is available. What technical breakthrough have they had? None. The breakthrough was to separate the various infrastructure elements of Internet service and allow "Adam Smith's invisible hand" to go to work. More competition means higher speeds and lower prices. In the U.S. we have legions of lawyers and lobbyists at work doing their best to gain protections for themselves and to slow the spread of innovation such as municipal wireless and voice over IP. Will video break the Internet? No. The biggest threat to freedom of choice for content at competitive prices is a lack of competition.

Misguided or overly-prescriptive legislation can have unintended consequences. It can often fix one problem and create two new ones or add yet another layer of protectionism. Mike Nelson, former Director for Technology Policy at the Federal Communications Commission (and former colleague at IBM), says "a lack of competition which lets companies exert monopoly or duopoly power is probably the biggest damper on innovation". Not all legislation is bad. It is possible to use it to increase competition and decrease regulation, to fund e-government pilot projects, "connect the unconnected," or fund university education and research.


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The Intellectual Property briefing by IBM on May 2 in Greenwich was extremely interesting and I hated to leave a bit early but there was an overlap with another briefing down the road in Stamford, Connecticut -- this one about healthcare. IBM's healthcare and life sciences business is huge with 4,000 employees and revenues in the U.S. alone that would put it well into the Fortune 500. The company counts as customers 8 of the top 12 hospitals and all of the top 30 pharmaceutical companies. What has really put IBM on the healthcare map is last year's acquisition of Healthlink, which brought with it 400 top healthcare consultants. The insight of the consultants plus the smorgasbord of IBM technology has put the company on a mission -- to be a major factor in creating "Transformed Healthcare".

IBM's vision is significant -- to build patient-centric information systems, shared health and wellness management systems, and integrated networks to pull it all together among the payers, the providers, and the patients. Many of the benefits are obvious but some are more subtle. Payer insurance companies may be transformed from claims processors to wellness concierges. Smoother workflow and process optimization due to better integration and access to information can lead to improved quality, fewer errors and lower healthcare costs.

IBM has a vested interest in becoming the leader at these things because it has a half-million employees and retirees. Their Global Health and Wellness program is a partner in developing solutions for clients and may itself become a model. The company not only has a wealth of information at the intranet web portal but also enables an electronic health record into which employees enter their personal information which is then supplemented by automatic updating from claim and pharmacy data. The company also provides incentives to exercise and stay healthy. As a result, IBM's labor cost is significantly lower than industry averages.

The conference was attended by several dozen healthcare software vendors and various industry experts, including more than a half-dozen physicians. Most of the discussions revolved around the notion of "Patient centric" -- connecting healthcare information about patients with insurers and healthcare providers for the benefit of the patient. The key to make all this work is standards and they will evolve through Regional Health Information Organizations (RHIO) and a National Health Information Network (NHIN). The RHIO includes consumers, hospitals, labs, pharmacies, payers, public health offices, and physicians. Progress is being made. A presentation was made by John Blair, MD, who is CEO of Taconic Healthcare Information Network, a RHIO just west of the Hudson River. They have connected practices, hospitals, labs and payers and have developed standardized electronic health records, e-mail access to physicians, and e-prescriptions. The NHIN has asked four IT companies to work on interconnection of the RHIO's. Part of IBM's NHIN architecture will be based on royalty-free health care information systems patents (discussed in the IP meeting earlier that day) which give priority access to requests for patient information coming from emergency rooms vs. routine office requests.

From a purely heath point of view, the biggest transformation will come from information based medicine that bridges healthcare and life sciences. Molecular level understanding of disease is being made possible, in part by supercomputers such as BlueGene, and the result will be the development of targeted drugs. In other words, based on a DNA sample and genomic analysis, a diagnosis and treatment can be based on our individual medical history and genetic predispositions. Whole new fields are opening up including pre-emptive medicine, pharmacogenomics and clinical decision intelligence. A small device the size of a cell phone can take a sample of your  blood and determine your rate of metabolism which in turn affects how much of a drug you need to provide optimal results. It will soon be possible to predict the likelihood of a person getting something deadly but yet preventable.

Advanced analytics are beginning to provide the ability to run complex algorithms to answer complex questions. For example, there is a 100 page document that provides guidelines on how to perform a particular surgical procedure. It is based on the "average" person. Nobody is average so would it be nice to be able to have a system which can provide specific recommendations based on many variables that are particular to an individual -- providing the surgeon with a "how to" guide unique to each patient.

Molecular Profiling Institute is creating tools for genomic and proteomic profiling and treatment of cancers. Seventy of our 40,000 genes can predict breast cancer accurately. Dr. Robert Penny showed incredible examples. A particular gene that is missing or not working can tell the cause of a particular disease and a drug that can attack that specific gene can fix it and the patient can be cured. This is called "jumping diseases" -- using a cure for disease xyz to treat disease abc. Dr. Penny showed before and after images of a dying cancer patient. After the application of a drug that attacked the targeted gene, the cancer disappeared. It gave the audience a lump in their throats.

There are many new issues arising along with the breakthroughs. For example, being able to know you have high odds of getting xyz disease for which there is no prevention and no cure after getting it, is questionable. The trend from physician centric to payer centric to patient centric is accelerating. It is likely that what will be accomplished in the next ten years will be vastly more than what has been accomplished in the last one hundred.

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For many of us, leaving our alma maters was a relief or even a good riddance -- what a joy to graduate and move on. Over the years the primary connection to the campus may have been sports related without much thought about academic roots. As time goes on that feeling changes and in fact some of us not only began to recall our college days but actually go back to visit in a more serious way and even get involved. Financial support of alumni is critical but involvement and sharing of experience is even more valuable.

At the engineering advisory board meeting today at Lehigh University, I was quite impressed with my colleagues' intense interest in what is going on at the university. In addition to getting an update from Dean Wu, there was a lot of discussion about future directions and how the extended family of alumni could collaborate to help out.

In the 1960's, Lehigh was primarily an engineering school and it was 100% male. Today engineering is a third of the university and women represent more than 40% of the nearly 7,000 students. When I graduated 39 years ago, there were no women at Lehigh (although there were many nearby, including my wife at St. Luke's School of Nursing), and last week Dr. Alice P. Gast, a world-renowned researcher with a passion for teaching, was named Lehigh University’s 13th president.

One area of focus for the college of engineering is to provide degree programs in which students can develop horizontally as well as vertically. Over time, a top student can be an ultimate techie but can also be outstanding as a business or arts student. This will mean they will be able to move from their undergrad experience to enter law school or medical school or join the ranks of business management or consulting with an edge because of their broader perspective. An engineer uses creativity, technology, and scientific knowledge to solve practical problems. What about communicating the solution to the problem and working with global multi-disciplinary colleagues to implement the solution? That is where Lehigh's thrust toward integrated programs comes in.

The Integrated Business & Engineering degree (IBE) is an innovative example of the potential of more diverse education. The program prepares students to assume leadership roles in industrial research and development, entrepreneurial initiatives, management consulting, high-tech ventures, and innovative technology. I have no doubt that this integrated approach to engineering will produce some future leaders for the world's top businesses.

At a speech in New Orleans on Monday I said we were just five percent of the way into the Internet -- that of all the things that could simplify our lives and save us time, only five percent of them are here so far. New companies such as Pandora are pressing the envelope to do great things but unfortunately many existing companies have not kept pace with expectations.

This morning I checked on the status of a medical prescription at Express Scripts, my "online" pharmacy. The web site had an order number but did not show the name of the medication. Clicking on "check status" gave a line that said "In pharmacy" -- since May 6. No information available. Sending an email to them is hopeless -- I have done it before -- they respond to the email by telling you to call if you need information. I called and was told they had received the prescription on May 3 and it then takes them three days to enter it into the system. Four days later they determined that it needs "prior authorization" and so they faxed a form to the doctor requesting that he fax a form to the insurance company who would then need to fax a form to customer service who would then notify the pharmacy it is ok to ship the medication. The pharmacy and customer service are the same company. There is no feedback to the customer at any point. Meanwhile everyone is calling everyone and the doctor's office is so overloaded with calls about prescriptions that you can't get through to them. This is the status of online pharmacy. Five percent would be an overstatement.

Then I made a reservation at Marriott.com. At the end of the form was a "comments" box and I entered some things that I thought would be helpful. Upon hitting the submit button I got an error message saying "Comments too long". The form only accepts 45 characters -- a ridiculous limitation in these days of inexpensive storage. Well designed online forms that limit the text input tell you how many characters you have remaining. Not this one -- there is no indication given of how many characters have actually been entered and the text box actually has four lines of 64 characters each. You just keep shortening and entering submit until it is satisfied. What could they be thinking? The confirming email arrived quickly but because they had embedded some javascript in the email to make it look pretty, it could not be printed. Travel sites generally are getting better but they still do a lot of dumb things.

The point that top management of these and many other companies are missing is that the perception of their company and their brand is no longer based on their past history or even the reputation of their products and services. The way we see them is the way we see their web sites. Unfortunately, a lot of things we see are not pretty. Increasingly our loyalties will shift to the companies who make our lives simpler and save us time instead of frustrating us. Many are trying hard but they have a long way to go.

There are some pictures from the New Orleans trip at flickr. Red Herring ran a story called Net 2016: The Web 10 Years After in which a number of us were quoted. See in the news. If you haven't tried Pandora, I highly recommend it. Story to follow.

After finding four official National Geodetic Survey benchmarks during an interesting walk around downtown New Orleans, it was time to meet at Antoine's for dinner. The famous restaurant has been continuously operated by the same family since 1840. Through wars, the Great Depression, epidemics and storms, the culinary treasures continue to be served. The French Quarter, where the restaurant operates, was fortunate to not have any water damage, although the winds took a toll and repairs are still underway. After dinner, my son and his friends headed for the music they wanted to hear. For me, there was only one place I had in mind.

I had not been to Preservation Hall for more than thirty years but I remembered exactly what to expect. The sound of the Preservation Hall Jazz Band is unique and inspiring. The musicians are polished and professional. I talked with the trombone player during break and he told me he was a professor of music at a local college. To hear him and his colleagues play you would never see a piece of music. It seemed to come from their soul. The saxophone player told me he read music when he was a boy but that now it comes from the soul. From their web site are a coupe of great quotes. "Musicians in New Orleans are born to entertain. There's nothing wrong with that, because I'm happy when I play. I love what I do". "We play gospel music here. We play old spirituals. We play military marches. There's no end to the variety of music that we play. But we play it all our way. And the more we play, the more the level of happiness rises. Just to watch our audiences go wow when we play, that gives me a good feeling and makes me want to put out more."

The amazing part to me is the coordination. There is no sheet music, no conductor, not even subtle leads from one of the members. All seven -- trumpet, two trombones, tuba, drum, tenor saxophone, and piano -- played as one. Soloists knew when to stand -- at times several would stand -- the crescendos and decrescendos were perfect and soft harmonies were flawless. These are truly great musicians. Walking a half mile down Bourbon Street back to the hotel there were dozens of "bands" playing at peak volume. It was a different world than Preservation Hall. I prefer the latter.

After Sunday brunch overlooking the mighty Mississippi River, it was time to head for JazzFest. The temperature was 90, the humidity was 100%, the crowd was 100K+ and there was no place to sit. In spite of this it was a great experience. The Paul Simon performance, in particular, was worth the price. Nice to see the 60+ performers -- he was amazing in every respect. Digital music is great but nothing compares to a live concert. The big screen made you feel like you were in the front row (even though there were no chairs). Regrettably, Fats Domino (78 years old) cancelled at the last minute for health reasons. Lionel Richie took took the stage instead.

On Monday morning it was a pleasure to make a presentation to a group of networking and IT executives at the English Turn Country Club. The topic was, guess what, the future of the Internet. With the incredible humidity, I do not regret not being a golfer and staying for the afternoon.

With regard to New Orleans,I found a mixed story. The water marks, damage, and debris were staggering. One can see why a huge number of people have been displaced and why housing is the main issue on many people's minds. I spoke to a number of residents who were working in the service industry. The common thread was that they were hopeful, courteous, and wore smiles on their faces even though they had every reason to be bitter. One person told me there was three feet of water in the second story of his house. He and his family moved in with a cousin -- eight people in a small home. The only good news is that there are plenty of jobs. The biggest tragedy may be that there are only five schools open in a city that was once more than a million people.

On Monday and Tuesday of this week a number of analysts and consultants gathered with IBM at an intellectual property briefing in Greenwich, Connecticut. Not as glamorous as the meeting in Rome but exceptionally interesting. The term intellectual property reflects the idea that the subject matter is a product of the mind and that legal rights to the "IP" are protected in the same way as any other form of property. IP is a vital issue for many companies but probably no company has as much influence in this area as IBM. IP is a broad and deep subject but one of the key elements is patents.

The United States granted the first patent to Samuel Hopkins of Pittsford, Vermont in 1790. Mr. Hopkin's idea had to do with making potash which in turn was used in making glass and in various industrial processes.Two other major patents granted the same year were related to making candles and milling flour. Earlier this year the United States Patent and Trademark Office (USPTO) announced that for the thirteenth consecutive year, IBM received more patents than any other private sector organization in America. No company, other than IBM, has yet been granted 2,000 patents in any year while IBM exceeded 3,000 four years in a row and last year had 1,100 more than anybody else. IBM has a portfolio of more than 40,000 patents globally and has another 21,000 U.S. patent applications pending. Potentially more significant than IBM's leadership in creating inventions is the fact that it is giving away thousands of patents. See Patent Commons (January 2005).

The industrial age focused on proprietary innovation and patents became the key differentiator for technology companies such as IBM. In the 1970's and 1980's there was a lot of cross-licensing to provide freedom of action; e.g. IBM cross-licensed with many other technology companies so that it could be able to ship it's products without any concerns about patent infringement. Since IBM's inventiveness created a lot more patent licensing income than licensing expense, the IP business became a major source of income -- to the tune of a $1 billion per year and mostly profit. Now that the industrial age has given over to a knowledge economy based on collaborative innovation, IBM has begun to re-evaluate it's IP strategy and begin to leverage IP as a new source of business growth.

Since IBM has a very large group of engineers and scientists who are prolific inventors, the patent portfolio is sure to grow and the income from it will be significant for quite some time. The company has more than 1,000 active licenses whereby companies pay IBM to use it's patents -- that represents about a third of IBM's IP income. Another third comes from joint development; e.g. with Sony, Toshiba, and Samsung where the companies work together on a project and then share the results. A prominent example was the development of the Cell processor which is used in the new Sony PS3 game console. A final third of IBM's IP income is from the assignment of patents for things that IBM invented but does not want to pursue on it's own -- digital cameras, liquid crystal displays, the laser used in eye surgery, setup boxes, and many other things.

Technologists working in healthcare and education cheered the move by IBM to allow them royalty-free access to its patent portfolio for the development and implementation of selected open healthcare and education software standards built around web services, electronic forms and open document formats. If new application software is developed in these key industries, society is better off and IBM will get it's fair share of the hardware, software and services opportunity. Very smart. To leverage internal ideas, IBM has created ThinkPlace -- a next generation suggestion program where employees don't just submit an idea and hope to get an award but where they tee up an idea and enable others to build upon the idea and collaborate to take it to the next level. IBM is also leveraging it's IP by using it to solve problems for it's clients through services engagements. For example, a group of PhD's from IBM Research helped a limousine company optimize the routes of it's cars to minimize wait time and fuel costs

The world of patents has become ever more complex across the spectrum of collaboration and competition as the world has moved from proprietary to open -- as the world has gotten flat. Patents issued have skyrocketed in the past dozen years -- more than 150,000 patents issued in 2000, and so have patent suits. The thousands of suits are taking a huge economic toll and in many cases are stifling innovation. Patent reform has become urgent. IBM is not waiting on the sidelines. It is taking a leadership role and encouraging progressive changes. For example, it has launched initiatives to improve the quality of patents by developing and proposing an index to evaluate if a patent meets the standards of patentability -- in other words, to test if the patent is really legitimate. These efforts are not just for IBM but for the entire economy. Hopefully the politicians, many of whom have links to trial lawyer associations, won't kill the pending patent reform legislation.  

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Thanks for all the nice feedback on the stories about the Business Leadership Forum in Rome. There are two final links that may be of interest. Chris Barger at IBM has posted the audio for the podcast about the demos, Internet technology, and healthcare. You can play it from here. Also, if you like the printed word, there is a single pdf that contains all the stories in one 23 page printable document. You can find it here.

Intro to Roman Rendezvous Stories
Index to Roman Rendezvous stories
Podcast
Transcript of podcast

The final afternoon of the Business Leadership Forum focused on the big picture -- of both global political factors and technology. A panel included Karl-Heinz Grasser, Federal Minister of Finance for the Republic of Austria. He spoke about how governments can not only avoid being an obstacle to innovation and growth but also encourage competition thereby creating more jobs. The panel was bullish about how the information revolution -- ushered in by the microprocessor in the early 1970's and the Internet of the 1990's -- has led to an explosion of new products and new business models, However, there was a consensus that retaliation from poor economies and over-regulation by some countries could stymie the growth. 

Mario Monti, President of Bocconi University and commissioner in the European Union for ten years, was quite optimistic about the EU -- a market of 480 million people -- and said that the EU itself is an innovation. He said that Europe is much more like the U.S. than it was. It is now a single market, has a single currency, and has been expanding market reach around the world. The shortcoming is that Europe, unlike America, does not yet have a constitution. This results in an economic disadvantage because the European community can not make a decision for the total. The European economy is not innovating quickly enough and in fact some countries are protecting the past at the expense of the future. Mario says it is time for "naming and shaming" the laggards through peer reviews. Then he got more specific -- "Germany, France, and Italy are behind on liberalization of service markets and have resisted initiatives to increase competition". These three countries will have a negative impact on the Euro which in turn will hurt the rest of Europe. Mr. Monti's presentation was sobering but hopeful. He said the EU has a lot of good features, that it can protect intellectual property but also move against monopolies such as Microsoft. The key to get innovation going in Europe is for the EU to innovate itself by completing it's constitution.

Irving Wladawsky-Berger kicked off the final segment of the forum, which focused on the future. IBM supports Linux because it is a great operating system for computers. Irving introduced Linus Torvalds the developer of Linux which he published as a student in 1991. Don Tapscott, a widely acclaimed author, who invented the term "paradigm shift", then moderated the final panel which included Linus, Nick Donofrio, executive vice president for innovation and technology at IBM, and Ann Mettler, executive director and co-founder of The Lisbon Council. It was a wide-ranging discussion. Linus is an incredibly humble guy. He said he has no vision, just looks 5 cm ahead before each step, and loves to solve technical problems. Linux is successful, he says, because both the development and the decision making are distributed -- a "built-in meritocracy". Don asked why volunteers worked on Linux for no economic return. Linus said, "if you were all engineers, you would not be asking that question". Open source software is viable in most all software areas, with the only exception being niche markets which are too small to get adequate collaboration. "Open source will take over most all infrastructure".

Ann said there is a huge gap between businesses which are moving ahead rapidly and societies which feel left behind. The key problem is that the economy is 70% services but the regulations and governance are still based on an industrial model. She believes that government should learn how to innovate from businesses. "Politicians are clueless about the discussion of the past day and a half". She says that businesses need to share their leanings with society. The labor market in Europe is flat because companies do not want to hire and that is because the laws are so onerous. "You can hire but you can't fire". Labor reform is needed desperately.

Nick says' It' s all about change". IBM is doing a balancing act by supporting both open things and proprietary things. The company is generating a lot of patents but also giving away a lot of patents to move the ball forward in key markets such as healthcare and education. "The world can move ahead faster if the OS is Linux -- it is good enough and a "blow for freedom". A California venture capitalist asked about business ethics and Nick was very aggressive in his response saying it was not optional for companies to be totally and completely ethical in every respect. (Having been at IBM for 38 years, I can say I never ever had a  concern about ethics at the company). Nick summarized that anyone can innovate if they are willing to change. "If nothing changes, nothing changes". Sam wrapped up the conference by saying corporations need to be transparent. Their ultimate responsibility is to create value for the constituencies: stockholders, customers, employees. He walks the talk.  

Intro to Roman Rendezvous Stories
Index to Roman Rendezvous stories

April 8, 2006

IBM had some demonstrations set up in the breakout areas at the Auditorium Parco della staffed by researchers and experts in various areas. There was a lot of interest during coffee breaks. After lunch before the final session of the forum got started I had interview with Chris Barger from IBM to talk about the demonstrations and also a few thoughts on the future of healthcare and the Internet. Here is the transcript and here is the podcast.

Intro to Roman Rendezvous Stories
Index to Roman Rendezvous stories
Podcast
Transcript of podcast