Coop's Corner

Rod Blagojevich got elected governor. So can Meg Whitman be that much of a long shot?

We may find out soon. eBay's former numero uno is said to be mulling her entry into California's gubernatorial race, according to The Wall Street Journal, which adds that Whitman will decide within the next six weeks whether to try to succeed Gov. Arnold Schwarzenegger after his final term runs out in January 2011.

I'm not sold on the idea, but more about that in a moment. I'm sure the political consultants advising Whitman believe it's a stroke of genius. On paper, at least, Whitman does have the makings of a dream candidate: smart, successful, and super-rich. And a tech type, to boot. Well, not a pure techie. She's an MBA who made the most of the opportunity after being plucked from Hasbro's ranks to become eBay's chief executive in 1998. But close enough for the campaign materials to present her as a Silicon Valley mover and shaker.

Maybe this would have gone down well before the dot-com bubble burst. A similar story line worked for Maria Cantwell, who went from being multi-millionaire vice president of marketing at RealNetworks to becoming a U.S. senator for Washington state after winning the 2000 race. (It did not work as well for another eBay veteran, Steve Westley, a few years later. He made it as far as California controller, but then spent $35 million of his own money in a losing race against Phil Angelides for the Democratic nomination to run for governor.)

But on the eve of the most compelling transfer of national power in my lifetime, post-Wall Street meltdown, post-Bernie Madoff, post-bailout of everyone with a pulse (except you and me), we're living with a different zeitgeist. Out in the real world, where most folks are destined to lives of drudgery until they punch the clock one final time, the American Dream is on hold until further notice. Fact is that if you have a job these days, then congratulations, you're ahead of the game.

That's not the way Silicon Valley sees things. Out here, there's a widely shared belief that we're all destined to get rich. I suppose that one of the tech industry's better features is an unyielding optimism that things are destined to get better, that someone will build that better mousetrap which becomes the next big thing.

You see that at mini-conferences around here where the same strivers congregate, peering over each other's shoulder in hopes of catching a glimpse of the Golden Fleece. I don't know if this constitutes an elite as much as a self-contained community, an echo chamber where the received wisdom of libertarianism and free market capitalism gives this place its daily marching orders.

The problem for a would-be politician from this community is that the achievements of ultra-rich yuppie technocrats don't fascinate us the way they once did. Sure, infectious greed is alive and well in many corners. But with so many down and out, there's something about Barack Obama's background that touches people far more profoundly.

Maybe what Whitman needs is a season or two as a community organizer before she hits the stumps, Rudy Giuliani notwithstanding.

Tod Nielsen just can't hold a job.

Actually, peripatetic is the better description. VMware on Tuesday named Nielsen to be its chief operating officer, his sixth different company since the millennium.

Tod Nielsen

Nielsen had been Borland's chief executive since November 2005. Before that, the garrulous 43-year-old held executive roles at Oracle, BEA Systems, and Microsoft. He also served a stint as CEO of Crossgain, before a noncompete snit with Microsoft forced him to step aside. BEA later acquired Crossgain.

In the role of VMware's COO, a newly created job, Nielsen will be reporting to CEO Paul Maritz, his former colleague--and boss--at Microsoft, where he worked for a dozen years.

Maritz said in a statement that the appointment would free him up to concentrate in other areas while Nielsen would focus on business, marketing, and operations. "Having worked closely with Tod in the past, I know that we will work effectively together and complement each other," he said.

He can use the help. VMware, one of 2007's hottest IPOs, has lost a lot of its early luster since then. The company faces increased competition in the virtualization market from Microsoft, IBM, Xen, and Oracle--and then there's the overhang of a deepening recession.

While at Microsoft, Nielsen played a minor role in the months-long courtroom drama when the U.S. Justice Department sued Microsoft for antitrust violations. When Microsoft's witnesses first began taking the stand, they wilted during the eviscerating cross-examination of lead attorney David Boies. At that point, Microsoft flew Nielsen out from Redmond to provide needed technical hand-holding.

Separately, Borland announced Tuesday that it was cutting its workforce by about 15 percent, or 130 employees. It also said that preliminary fourth-quarter revenue would fall between $38.5 million to $40 million. The company previously had forecast full year revenue of $180 million to $200 million. Erik Prusch was named acting president and CEO to replace Nielsen; he had been CFO.

If you're an Apple shareholder or employee, the good news is that Steve Jobs' health is not in any immediate danger.

Or so we're supposed to surmise from the cryptic note issued by Jobs early Monday on the state of his health--and the even more cryptic note put out by his employer.

At the unveiling of new MacBooks in October, Steve Jobs tersely addressed concerns about his health: "That's all we'll talk about with Steve's health today. Want to see (his blood pressure) higher? Just ask him more questions."

(Credit: James Martin/CNET News)

Here's the relevant text from Jobs' statement Monday:

As many of you know, I have been losing weight throughout 2008. The reason has been a mystery to me and my doctors. A few weeks ago, I decided that getting to the root cause of this and reversing it needed to become my #1 priority.

Fortunately, after further testing, my doctors think they have found the cause--a hormone imbalance that has been "robbing" me of the proteins my body needs to be healthy. Sophisticated blood tests have confirmed this diagnosis.

The remedy for this nutritional problem is relatively simple and straightforward, and I've already begun treatment. But, just like I didn't lose this much weight and body mass in a week or a month, my doctors expect it will take me until late this Spring to regain it. I will continue as Apple's CEO during my recovery.

OK, it's great to know that he's not facing a cancer recurrence, as some had speculated. Jobs is a tech icon and the industry would be much the poorer were he to retire from the scene. But this latest PR stunt is going to raise new questions. Not about the exact nature of Jobs' ailment but about the parsimonious way Apple has communicated with the public about the health of its CEO.

Until now, the mantra was "Steve's health is a private matter, Steve is our CEO." The impression Apple wanted to leave was that everything's just fine at the helm. That shaded the truth--and I'm being charitable here. At this point, how can you trust the official chronology offered up by Jobs and Apple? Even with Monday's statements, I can't call it communication so much as stonewalling.

True to form, Apple won't care a fig what outsiders may think. "Just keep on buying and don't bother us with the rest of it." Talk about a reality distortion field.

See also:
• Steve Jobs discloses hormone imbalance
• Health concerns force Apple's Jobs from Macworld
• Apple's last Macworld beginning of new era

Click here for more Macworld Expo coverage from CNET News.

The health of Apple CEO Steve Jobs has been a topic of concern for some months now. On Monday, with the company's Macworld show getting under way, Apple and Jobs issued statements on Jobs' health. We'll be following this breaking story throughout the day.

In October, Steve Jobs briefly addressed his state of health onstage at an Apple event.

(Credit: James Martin/CNET News)

CUPERTINO, Calif. -- It is widely recognized both inside and outside of Apple that Steve Jobs is one of the most talented and effective CEOs in the world.

As we have said before, if there ever comes a day when Steve wants to retire or for other reasons cannot continue to fulfill his duties as Apple's CEO, you will know it.

Apple is very lucky to have Steve as its leader and CEO, and he deserves our complete and unwavering support during his recuperation. He most certainly has that from Apple and its Board.

Here is a separate letter from Steve Jobs:

Dear Apple Community,

For the first time in a decade, I'm getting to spend the holiday season with my family, rather than intensely preparing for a Macworld keynote.

Unfortunately, my decision to have Phil deliver the Macworld keynote set off another flurry of rumors about my health, with some even publishing stories of me on my deathbed.

I've decided to share something very personal with the Apple community so that we can all relax and enjoy the show tomorrow.

"I will continue as Apple's CEO during my recovery."

--Steve Jobs

As many of you know, I have been losing weight throughout 2008. The reason has been a mystery to me and my doctors. A few weeks ago, I decided that getting to the root cause of this and reversing it needed to become my #1 priority.

Fortunately, after further testing, my doctors think they have found the cause -- a hormone imbalance that has been "robbing" me of the proteins my body needs to be healthy. Sophisticated blood tests have confirmed this diagnosis.

The remedy for this nutritional problem is relatively simple and straightforward, and I've already begun treatment. But, just like I didn't lose this much weight and body mass in a week or a month, my doctors expect it will take me until late this Spring to regain it. I will continue as Apple's CEO during my recovery.

I have given more than my all to Apple for the past 11 years now. I will be the first one to step up and tell our Board of Directors if I can no longer continue to fulfill my duties as Apple's CEO. I hope the Apple community will support me in my recovery and know that I will always put what is best for Apple first.

So now I've said more than I wanted to say, and all that I am going to say, about this.

Steve

See also:
• On eve of Macworld, Jobs talks health
• Now Apple's credibility really is in the balance
• Apple's last Macworld beginning of new era

Click here for more Macworld Expo coverage from CNET News.

Sony boss Sir Howard Stringer has to be one of the most charming executives in all of techdom. But as Arthur Miller taught us, a smile and a shoeshine go only so far.

Remember this quote?: "You can take iPod and beat us over the head with it, but it's only one product. And we have a thousand products. Apple has two or three."

Oh boy. I'm sure Stringer winces whenever that quote gets trotted out. Now Stringer, who has been CEO since 2005, is reportedly mulling what the U.K.'s Times suggests will include "job cuts and sweeping changes to management and manufacturing processes."

The Times' sources say the changes likely will get announced after the Consumer Electronics Show and will "abolish or fundamentally alter many of Sony's long-established business practices."

If you think you've heard that before, well, you have. Sony's been hampered by internal bureaucratic rivalries for years. Inconclusive fights over formats and digital rights management have put too much distance between Sony and its consumers. The upshot: Products that are good, not great. That title has been passed along to Apple.

That's left Stringer exhorting Sony to get more imaginative. Last May, he reportedly urged his minions to "get mad." Jawboning only got Sony so far. If the Times' report is correct, the company's about to go to Defcon 1.

I'm not sure how much to get excited about all of this. If Stringer's as capable an executive as he's been portrayed--and the guy definitely is a blue-chip talent--this is the point where he must prove his super hero cred. Anything less, and he's going to wind up as toast. Will the same also be said of Sony?

First real war, now a cyber war? The Jerusalem-based Debkafile said it was temporarily put out of action Saturday evening by a cyber attack.

It's not clear whether this was a denial of service attack. Debka, which specializes in military and political analysis, sent out a note to subscribers that both its English and Hebrew sites had been under attack "since 19:00 local time." It did not get more specific and the site's publishers were not immediately available for comment.

The announcement took place in the shadow of the week-long conflict between Israel and Hamas. Earlier today, the Israel Defense Force sent its troops into Gaza in a move to smother missile fire.

Related story: Israel brings Gaza airstrikes to the Web

With the nation on edge, you might assume that every Internet retailer worth their salt would have extended red carpet treatment to shoppers during the traditional end-of-year shopping rush.

Wrong assumption.

In fact, more than one-third of the 40 online merchants surveyed in a report on retail satisfaction finished with lower scores than they did during the same period a year ago.

Still, the annual report from Foresee Results found that scores for most of the 40 online retailers it tracks remained the same while one-fourth registered improvements from 2007.

"Holding flat was a pleasant surprise," said Larry Freed, the company's president and CEO. "Obviously, the economic pressures and price concerns were on peoples' minds. But this bodes well after we get past this economic bump in the road and the economy improves."

Amazon and Netflix turned out to be favorites with online shoppers during the holidays, finishing first and second, respectively in the rankings.

Freed noted that higher customer satisfaction ratings often translates into loyalty and purchase intent. Of the 40 websites, who were rated on a 100-point scale, only Amazon and Netflix finished with scores above 80. More than a quarter scored 70 or below, and almost 40 percent saw their satisfaction rankings drop year-over-year.

Beyond the raw numbers, however, no single aspect of customer satisfaction applied across the board as a measure of overall satisfaction. In some cases it was price, in other circumstances the range of merchandise or the functionality of the Web site held sway.

One other takeaway from the report is clear: Despite the strong performance turned in by Amazon and Netflix, the previous gap no longer separates so-called brick-and-mortar outfits, which migrated to the Web, from pure-play Internet retailers.

"Up until a couple of years ago, the pure plays led the way and the multichannel players trailed by significant margins," Freed said. "But they've since closed the gap."

(The following is a partial list of the rankings. You can find the full report on the Foresee Results Web site.)

(Credit: Foresee Results)

There's already a lengthy wish list as users ponder the invention of the "ideal" smartphone in 2009. All well and good. But I submit that next year's most important technology development won't have anything to do with a new feature or application.

Instead, it's going to boil down to whether mobile device makers open smartphones as widely as the personal computer. Manufactures and carriers, scared to death about the possible security implications, may decide that it's wiser to instead keep their devices closed. How long they can ignore the pressure is unclear.

That's because it's only a matter of time before smartphones supplant mobile and desktop PCs--maybe not today, but eventually. A recent report on mobile Web usage forecast the number of highly capable Internet browsers on smartphones expanding from some 130 million units this year to around 530 million by 2013.

Even before the market reaches that point, the implications for smartphone security are likely going to be profound. Not the least because smartphones will face the same sorts of security and virus breaches that have become commonplace in the PC scene. Let's face it, people are creatures of habit and if past is prologue, they'll get lazy about virus protection. Odds are they're going to commit the same stupid acts of omission and commission with their smartphones that they do with their computers.

"Smartphone owners have been sending mixed signals about whether they see the need or the responsibility to deal with security, or whether they see it as the responsibility of carriers to put it in right out of the box," said Jan Volzke, a McAfee exec I spoke with recently.

If you think about how people have used their cell phones, it's basically been for sending messages and communication only. Only recently have devices gotten more complex. When it comes to Internet viruses, worms, or phishing, it's all available.

That's where the pushing and pulling between advocates arguing more open is better and those arguing just the opposite becomes especially relevant. For the companies behind Android, the iPhone, the BlackBerry, and Symbian, more openness means more software development and thus, more creative applications in the market. But as Khoi Nguyen, Symantec's group product manager for its mobile security group, told me, the downside is that this invites the attention of malicious virus writers.

"New technologies are being introduced. Lot of these smartphones have Wi-Fi connections and lots of users will go onto Wi-Fi connections or install voice over IP apps on their devices," he said. "It will be interesting to see how that plays out and to see whether hackers try and take advantage. We expect that they will."

So why haven't there been major smartphone attacks yet?

Chalk it up to the absence of anything approaching the Microsoft "monoculture" in PCs. The smartphone market is fragmented among Symbian, Windows Mobile, Apple, Java, etc., thus making it harder for writers of malicious code to come up with their incarnation of (literally) a "killer app." Turns out then, notes Volzke, that the No. 1 protection in mobile boils down to counting noses: "It's still easier for hackers to make money working on the PC side than on the mobile side...Fragmentation protects us and equals out to a very poor return on investment (for attackers). "

Not exactly a consoling thought but it does mean that we've bought some time. How long, of course is anybody's guess.

In July 2001, Napster got shut down by the recording industry. Had the music moguls known how history would evolve over the next six and a half years, I wonder whether they would have tried a different tack.

I know, it's an endless bar debate. But watching the music establishment play catch-up, with its continuing series of zigs and zags, don't you just know these guys wish they had the opportunity for a do-over? Who wouldn't? But life doesn't work that way. So instead, it's been a slow (and unsatisfying) grapple with technology.

A few days before Christmas Warner Music began to pull its videos from YouTube over a licensing fees impasse. Probably not a very effective negotiating tack given that YouTube/Google needs Warner less than Warner needs YouTube/Google.

But events are moving fast. Today comes word, courtesy of the Financial Times that the four big labels plan to come up with their own destination site on the Internet. To wit:

Plans under discussion include: a partnership with Hulu, the online television and film joint venture between News Corp and NBC Universal; the creation of a premium service on YouTube, Google's video sharing site; or, a standalone venture between some or all of the four largest recorded music groups.

Representatives of two music companies, who would not be named, said they were in discussions with Hulu, adding that no partnership announcement was imminent but that the site appeared to be the favoured partner. "If it happens at all it will be with Hulu," one said.

Then again, they might just as easily decide to fall back in love with YouTube, pending a better deal. Or not.

One parting thought: I still contend that the recording industry would be in a lot better shape today had it not ordered its lawyers to nuke Napster at the dawn of the digital music file swapping. Of course, we'll never really know. To be continued.

What with a deepening global recession it's been pretty much a lousy 2008 for most folks, but it's closing on a very good note--if you happen to be an elephant, that is.

The proliferation in the illegal trade of wildlife species has been aided by the use of the Internet. In a recent report (PDF), the International Fund for Animal Welfare found that about two-thirds of the global online trade in protected wildlife takes place on eBay's platform. The group said that poachers kill more than 2,000 elephants in Africa and Asia annually to meet demand for ivory products.

The sale of elephant ivory has been illegal since 1989 (although there are certain exceptions to the prohibition).

In a statement, Jack Christin, senior regulatory counsel for eBay had this to say:

"Due to the unique nature of eBay's global online marketplace and the complexity surrounding the sale of ivory, we decided to ban the sale of ivory on eBay. We appreciate the support from the IFAW in assisting us and we look forward to continuing to work with them on the implementation of the global ban. Like the IFAW, ultimately we feel this is the best way to protect the endangered and protected species from which a significant portion of ivory products are derived."