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Microsoft recently announced in the US that its latest operating system upgrade, Windows 98 Second Edition, is complete and has been sent to manufacturing plants. Local Microsoft people said the product would be with OEM manufacturers and retail outlets "by the end of June". As well as patching holes in the original version, Windows 98 Second Edition provides enhancements in the area of Internet, networking, and hardware technologies, according to Microsoft.

Now that Cisco Systems has killed off its ATM switch for the core of enterprise and service provider WANs, the company's plans for this segment of the market are unclear. Cisco is banking on increased sales of WAN switching gear to enterprises and service providers to drive the company's growth. But recent news that Cisco discontinued development of its core WAN switch and delayed another enterprise switch for a year indicates that success for Cisco in this market may be more challenging than expected.

Motorola last week announced it would sell its semiconductor components unit to private investment company Texas Pacific Group (TPG) in a deal valued at $US1.6 billion. The deal involves the Semiconductor Components Group (SCG) unit of Motorola's Semiconductor Products Sector (SPS). It calls for Motorola to receive about $1.6 billion in cash, notes and approximately 10 per cent of the stock of the new company, according to TPG officials.

In Newborough, in Victoria's Latrobe Valley, there's an organisation that may be the living proof that computer vendors need to develop and maintain their channel partnerships. Over the past three years, Lowanna College is reported to have spent more than a million dollars on its IT infrastructure, with the majority of this investment being made with Melbourne-based education specialist system integrator Histar Invotek Group (HIG).

Speculation about Netscape's future has run rampant for 18 months. As the dust of the acquisition starts to settle, it is clear that the new Netscape, managed under the America Online umbrella and defined by a strategic partnership with Sun Microsystems, will produce some new strategies and find itself some new competitors. Still, the question remains: can Netscape continue to grow its markets as an open, cross-platform products vendor while it continues to cuddle up even closer with Sun?

IBM is entering Jupiter's orbit with its announcement of the WorkPad z50, a 1.2kg Windows CE device with a Jupiter-class clamshell design. The announcement from IBM expands its WorkPad product line - which currently includes the PalmPilot device running the Palm OS - while also continuing the segmentation of the mobile computing market by system vendors.

Over 1900 new PC and video game titles in 13 genres were introduced at last week's Electronic Entertainment Expo E3 in Los Angeles, one of the largest interactive entertainment expos held each year. More than 400 exhibitors occupied more than 50,000 square metres of space for the show which was put on for the fifth time by the US-based Interactive Digital Software Association.

Service and software solutions provider Information Builders last week warned that a failure to integrate e-commerce with core business could cost Australian companies dearly in the race for global market share. Using his appointment to the position of country manager for Australia, John Piercey, previously regional manager for Europe, the Middle East and Africa, claimed that while Australia has a well-developed Web infrastructure, few organisations have been able to take real advantage of the Internet's commercial potential.

The recently established Sydney arm of Internet developer Oven Digital has emerged in a blaze of glory, securing two $1 million contracts before even moving into their Pyrmont premises.

Telstra and 3Com have overcome a raft of logistical hurdles to launch an Internet bundle for small business. The companies last week announced a drive to recruit around 1000 approved resellers to sell integrated digital Internet solutions based on Telstra's OnRamp ISDN connections and Big Pond Business ISDN access with 3Com modems and routers.

Looking to peg back the growing IT skills shortage in Australia, Intel and IT training company Technology Solutions have extended the chip maker's certification program to the general public. It is expected that individuals will enrol themselves in the program, rather than wait for their employer to arrange it

Software Today owner and national mobile electronics retailing giant the Strathfield Group Limited (SGL) released its third-quarter results last week, which included a healthy sales growth of 42 per cent over last year. When you include new stores that have been opened in the last year, total retail sales are up 42 per cent for the third quarter and 35 per cent for the nine months to the end of March.

With business colour taking off, one of the later starters is now facing up to the penalty it must pay to win channel and market share. Lexmark is making an aggressive bid to claw some colour business printer market points away from Hewlett-Packard and Tektronix with limited-time price cuts of between 28 and 40 per cent.

Emerging global satellite voice and data providers last week were scrambling to distance themselves from market pioneer Iridium World Communications after Iridium reported disastrous financial results and endured predictions of its eventual demise.

As self-proclaimed champions of the channel, we at Australian Reseller News have always considered Dell to be the enemy. Dell was direct and direct was bad. That still holds true for all the resellers out there who rely heavily on selling boxes, particularly retail businesses. But I must admit I have been surprised by the number of corporate resellers who have recently told me they are more than happy to go into a deal with Dell as the PC supplier.

The channel is facing a crisis of confidence in wide area network (WAN) vendors' channel managers, according to a recent channel survey. The survey, conducted by Queensland-based East and Partners, reports the number one area WAN vendors must lift their game is in the quality or seniority of their channel managers.

Hewlett-Packard reported strong second-quarter earnings of $US918 million last week as a result of solid sales of PCs, printers and imaging products and improvement in the company's measurement business.

Hewlett-Packard and IBM are stepping up their efforts in the race to provide their customers with a direct sales model. Both companies claim the change is being made in response to North American IT buyers' complaints that the reseller channel offers less value and more headaches than the direct sales model. As part of its "realignment" strategy, HP is expected to start selling its small and midsize business line of products directly on its Web site in June.

Representatives from Sun, Oracle, and IBM gathered here last week to answer the question "Is Java enterprise-ready?" before a packed auditorium of Java developers.

Australian Internet player LibertyOne has made Warren Lee, formerly its business development manager, CEO, filling the hole left by the recent resignation of former boss Don Hagens.