Tag Archives: Bill Gates

Safe in Cyberspace

Malevolent hackers. Psychotic e-mailers. Vengeful ex-employees. What do these folks have in common? Your computers. Day and night they’re relentlessly probing your defenses, looking for trade secrets, customer credit card numbers or simply the adrenaline rush of wiping out a loaded hard drive. It may be only a matter of time before they pay dirt. Doing business in the Internet age is a little like Frodo Baggins’ Lord of the Rings journey to Mount Doom — moments of triumph interspersed with sudden vicious attacks from out the blue. In 2001, a hacker penetrated Conshohocken, Pennsylvania’s Webcertificate.com and demanded a cash payment to keep him from exposing the personal information of 350,000 customers. Early this year a massive assault by a virus-like worm called Mydoom took down the Web servers of SCO Group, a software company in Lindon, Utah. Danger lurks in every Web interaction. “Malware,” a new-fangled term for viruses, worms, Trojan horses and other electronic microbes, cost companies $55 billion last year, according to Trend Micro, a developer of antivirus software. Data theft and targeted denial-of-service attacks are even more expensive. The problem has become so bad that Bill Gates recently advised Microsoft customers that “security is as big and important a challenge as any our industry has ever tackled” and pledged to make it the company’s top priority. Don’t take comfort in the fact that your business isn’t an obvious target like the Pentagon or American Express. Viruses are equal-opportunity assassins. Cyber-predators look for easy prey, and small-to-midsize companies often fit that bill. The good news — yes, there is some! — is that you can protect your data without spending a small fortune. Inexpensive antivirus software from Trend Micro, Symantec, Network Associates, Panda and more than dozen other companies zap bugs on sight. Firewalls built into Microsoft’s Windows XP and Apple’s OS X deter hack attacks by making your company’s computers invisible on the Web. Third-party firewall programs from Tiny Software, Zone Labs, BlackIce and other vendors go even further, keeping virus-like Trojan horse programs from surreptitiously sending your confidential data through hidden back doors. Hardware firewalls, often built into network routers made by Cisco, Asante, Linksys, SMC and other vendors, add yet another layer of protection. Many also let you create encrypted “virtual private networks” on the Internet, securely linking field offices and telecommuters. Companies with especially sensitive data and deep pockets can install ultra-sensitive intrusion detection systems that continuously sniff inbound and outbound traffic for signs of trouble, such as unusual server activity at 2 a.m. But technology alone won’t do it. You also need a smart game plan. Most experts say a truly effective defense strategy needs to address these issues: Software configuration. Make sure antivirus programs are on every machine, no exceptions, and that they are set to scan every downloaded file and incoming and outgoing email. They should also thoroughly inspect hard disks on a daily or weekly schedule. Adjust each computer’s firewall to the highest level possible without impeding the ability of the user to function productively. Password protect those settings to prevent intentional or unintentional changes. Software updates. Let antivirus software install the latest virus definitions as soon as they become available. Promptly apply operating system security patches to eliminate newly-discovered vulnerabilities. Windows XP can do so automatically. Be on the lookout for upcoming “service packs” for Windows XP and Windows Server 2003, which will include a number of security enhancements. File access. Protect your company’s intellectual property and other sensitive data by restricting access to certain files. If you are running Windows XP Professional and Microsoft Small Business Server 2003, use built-in controls to set individual user permissions. Back ups. Make copies of all files nightly to minimize damage if a hard drive is trashed by a virus or malfunction. A RAID system that simultaneously writes data to two disks provides continuous protection against drive crashes, but a virus that destroys one drive will probably get the other, too. Put important stuff onto a removable medium, such as a tape or rewritable CD or DVD where a virus can’t get it, and store it off premise so it’s protected from theft or fire. Laptop protection. Require users to take special precautions, such as using a startup password and encrypting data so a thief can’t access the information. Avoid sending highly sensitive materials over public Wi-Fi networks, where it may be easily intercepted, and subject each machine to a virus scan before it is reconnected to the company network. Education. Teach employees Internet security procedures, stressing the potential threats to company and their livelihood. Make it clear what kinds of Web sites are to be avoided and instruct them to delete unexpected (and possibly virus-infested) email attachments without opening them. There are no guarantees here. But a well-conceived strategy, backed up by good technology and common sense can make you an intimidating target, and feel a little bit safer.

Laima Tazmin

Laima Tazmin LAVT because she’s a lot like other kids–and then again… Laima Tazmin, president of LAVT LLC, a Web consulting company based in a ramshackle prewar upper Manhattan building, is laying out her vision for the company’s expansion into customizing computers and developing community-based online businesses. Tazmin’s office is efficiently sparse, all her papers are properly filed, and her workspace is ordered and symmetrical, down to the dueling computer terminals that allow her to work side-by-side with an assistant, who scours Internet boards for new markets. It’s a lean, effective operation, considerably more advanced and potentially more lucrative than the typical entrepreneurs of Laima’s lot. That lot would be babysitters, lawn mowers, paper routers, and burger flippers. Laima Tazmin is a 15-year-old freshman. The assistant is her mom, Lora. “Laima is the top kid I have personally ever worked with, and that’s out of 9,000,” says Steve Mariotti, founder and president of the National Foundation for Teaching Entrepreneurship (NFTE). “I’ve never met a kid like that.” It was an NFTE instructor who introduced Laima, who was then in sixth grade (she was thoroughly self-taught in HTML by that point), to the world of small business. “He taught us we could turn our interests and hobbies into ideas for companies,” says Tazmin. She parlayed her love of computers into a business plan that initially won a regional competition and then, after a bit of tweaking, bested plans from high school and college-age kids to win her the “Young Entrepreneur” contest sponsored by Fleet Bank. That netted her both $2,500 and a taste of media exposure. Money doesn’t seem to be the force behind Tazmin’s march toward the wunderkind hall of fame. Rather she has a sincere desire to build a viable company that can more or less sustain itself when she hits some lucky college campus in 2007. Essentially, she sees herself setting up a “network of associates” (other college kids) to do her grunt work. To that end, she has burned through every program NFTE offers and is now the guinea pig in an “Executive Incubator” that offers Deutsche Bank director Joe Carvin as a mentor. “Laima has the technical skills, creative ability, and seriousness of purpose,” says Carvin, “and she’s in an industry where young people can have a competitive advantage.” To think she took her baby steps toward becoming a mogul on Communist soil. Laima was born in Cuba, the daughter of a Russian mother and a Cuban father who left the family portrait years ago. Lora brought Laima and her older brother Arlin, who is now 26, to the United States via the Soviet Union in 1995. It’s the American dream played out with a tinge of adolescent angst, or it would be if Laima weren’t so preternaturally calm. On top of her quiet confidence, Laima has incorporated Buddhist meditation into her daily routine, which explains her Taoish nuggets like “Failure is a step to success.” She is the polar opposite of the high-strung, ready-to-snap-and-go-ballistic type A’s who water the lawns of prep schools with their tears over a B-plus. She is a sunny, charming, well-adjusted young girl who just happens to have a copy of the Idiot’s Guide to Making Millions on the Internet on the same bookshelf as the latest Harry Potter, a Shrek DVD, and Hello Kitty memorabilia. “I find Laima to be extraordinarily poised beyond her years,” says Tom Phillips, one of her (10, at the moment) clients, who owns a communications consulting firm and hired her to give him a Web presence. “Her work is great.” The accolades pour in from all corners, including her fellow students, who recently voted her class president, just another application-builder in her heavily scheduled young life, which is filled with: studying; shaking it as a member of the school’s hip-hop dance team; hardwiring desktops; playing tennis and basketball; volunteering for a cyber-project that lets war veterans tell their stories digitally; speaking on behalf of NFTE; writing a novel; and oh, yes, running a successful business. If she seems too good to be true, remember that teenagers have a way of defying expectations. So maybe she won’t become Bill Gates, but she’ll definitely be Laima Tazmin. “I want to direct my own life,” she says with a knowing grin. “Entrepreneurship is about planning for the future, and I want to develop my creativity to have freedom. I want to grow myself.”–Patrick J. Sauer Patrick J. Sauer is a staff writer. Jeff Bezos, Amazon.com because “optimism is essential” Betsey Johnson, Betsey Johnson for her stylish life Russell Simmons, Rush Communications for his powerful example Scott Cook, Intuit because he learns, and teaches Sergey Brin & Larry Page, Google for their integrity. And, well, for Google David Neeleman, JetBlue for creating an airline fit for humans Tom Stemberg, Staples for doing it exactly right Jack Stack, SRC Holdings for going naked Judy Wicks, White Dog Enterprises because she’s put in place more progressive business practices per square foot than any other entrepreneur Davin Wedel, Global Protection because he’s a lifesaver Pat McGovern, International Data Group for knowing the power of respect Steve Jobs, Apple Computer, Pixar because we like to be seduced Lance Morgan, Ho-Chunk because a man must make his own arrows–Winnebago proverb James Goodnight, SAS for saying no to Wall Street (repeatedly) and yes to the people who really matter Stella Ogiale, Chesterfield Health Services for doing good while doing well Rhonda Kallman, New Century Brewing for seizing opportunity– again and again Laima Tazmin, LAVT because she’s a lot like other kids–and then again… Laura & Pete Wakeman, Great Harvest Bread for living a little –no, a lot Andra Rush, Rush Trucking for rolling up her sleeves Kathleen Wehner, Cirrus Aviation for refusing to quit Frank Venegas, Ideal Group because he parlayed a little bit of luck into a lot of good fortune for others Dan Wieden, Wieden + Kennedy because he’s a true independent John Sperling, Apollo Group because he stirs the pot, and apparently always will John Stollenwerk, Allen-Edmonds for his commitment to U.S. workers. We also love the shoes Mel Zuckerman, Canyon Ranch for showing the way

Safe in Cyberspace

Malevolent hackers. Psychotic e-mailers. Vengeful ex-employees. What do these folks have in common? Your computers. Day and night they’re relentlessly probing your defenses, looking for trade secrets, customer credit card numbers or simply the adrenaline rush of wiping out a loaded hard drive. It may be only a matter of time before they pay dirt. Doing business in the Internet age is a little like Frodo Baggins’ Lord of the Rings journey to Mount Doom — moments of triumph interspersed with sudden vicious attacks from out the blue. In 2001, a hacker penetrated Conshohocken, Pennsylvania’s Webcertificate.com and demanded a cash payment to keep him from exposing the personal information of 350,000 customers. Early this year a massive assault by a virus-like worm called Mydoom took down the Web servers of SCO Group, a software company in Lindon, Utah. Danger lurks in every Web interaction. “Malware,” a new-fangled term for viruses, worms, Trojan horses and other electronic microbes, cost companies $55 billion last year, according to Trend Micro, a developer of antivirus software. Data theft and targeted denial-of-service attacks are even more expensive. The problem has become so bad that Bill Gates recently advised Microsoft customers that “security is as big and important a challenge as any our industry has ever tackled” and pledged to make it the company’s top priority. Don’t take comfort in the fact that your business isn’t an obvious target like the Pentagon or American Express. Viruses are equal-opportunity assassins. Cyber-predators look for easy prey, and small-to-midsize companies often fit that bill. The good news — yes, there is some! — is that you can protect your data without spending a small fortune. Inexpensive antivirus software from Trend Micro, Symantec, Network Associates, Panda and more than dozen other companies zap bugs on sight. Firewalls built into Microsoft’s Windows XP and Apple’s OS X deter hack attacks by making your company’s computers invisible on the Web. Third-party firewall programs from Tiny Software, Zone Labs, BlackIce and other vendors go even further, keeping virus-like Trojan horse programs from surreptitiously sending your confidential data through hidden back doors. Hardware firewalls, often built into network routers made by Cisco, Asante, Linksys, SMC and other vendors, add yet another layer of protection. Many also let you create encrypted “virtual private networks” on the Internet, securely linking field offices and telecommuters. Companies with especially sensitive data and deep pockets can install ultra-sensitive intrusion detection systems that continuously sniff inbound and outbound traffic for signs of trouble, such as unusual server activity at 2 a.m. But technology alone won’t do it. You also need a smart game plan. Most experts say a truly effective defense strategy needs to address these issues: Software configuration. Make sure antivirus programs are on every machine, no exceptions, and that they are set to scan every downloaded file and incoming and outgoing email. They should also thoroughly inspect hard disks on a daily or weekly schedule. Adjust each computer’s firewall to the highest level possible without impeding the ability of the user to function productively. Password protect those settings to prevent intentional or unintentional changes. Software updates. Let antivirus software install the latest virus definitions as soon as they become available. Promptly apply operating system security patches to eliminate newly-discovered vulnerabilities. Windows XP can do so automatically. Be on the lookout for upcoming “service packs” for Windows XP and Windows Server 2003, which will include a number of security enhancements. File access. Protect your company’s intellectual property and other sensitive data by restricting access to certain files. If you are running Windows XP Professional and Microsoft Small Business Server 2003, use built-in controls to set individual user permissions. Back ups. Make copies of all files nightly to minimize damage if a hard drive is trashed by a virus or malfunction. A RAID system that simultaneously writes data to two disks provides continuous protection against drive crashes, but a virus that destroys one drive will probably get the other, too. Put important stuff onto a removable medium, such as a tape or rewritable CD or DVD where a virus can’t get it, and store it off premise so it’s protected from theft or fire. Laptop protection. Require users to take special precautions, such as using a startup password and encrypting data so a thief can’t access the information. Avoid sending highly sensitive materials over public Wi-Fi networks, where it may be easily intercepted, and subject each machine to a virus scan before it is reconnected to the company network. Education. Teach employees Internet security procedures, stressing the potential threats to company and their livelihood. Make it clear what kinds of Web sites are to be avoided and instruct them to delete unexpected (and possibly virus-infested) email attachments without opening them. There are no guarantees here. But a well-conceived strategy, backed up by good technology and common sense can make you an intimidating target, and feel a little bit safer.

There’s Linux in Them Thar Hills

I got my laptop to boot up into Windows. This sounds idiot proof, but it’s not. My laptop opens by default into Linux. Certainly you’ve heard of Linux. It’s a computer operating system, an alternative to Microsoft and their Windows operating system. Technology is full of differing approaches. But Microsoft v. Linux goes beyond a simple disagreement. It’s a Hatfields-and-McCoys feud, a drama of honor and justice, a fight for the way things ought to be. You’ve got your Hatfields–Windows XP, 98, NT and Millennium–and across a gurgling Appalachian creek, your McCoys–the Linux clan. It’s not hard to find the Linux homestead. Wander two hills over and take a right at the old well. You’ll know the place by the flag of the pudgy, somnambulant penguin that hangs next to the satellite dish. Even in Appalachia, geeks gotta have their toys. From the outside, the Linux house looks like a decrepit shack. But appearances can be deceiving. Open the creaking front door, and you discover an opulent interior that stretches out spaciously. (It’s like the phenomenon of Doctor Who’s Tardis: On the outside, a tiny police call box, yet inside, a sprawling timeship.) But wait! The Linux house feels oddly familiar. Do you hear the words “see-ment pond” echoing in the marble foyer? Waddaya know! It’s Chez Clampett, the mansion that Jed bought after he discovered the bubblin’ crude, and they loaded up the truck and moved to Beverly Hills. Along with a stash of killer hardware. In the kitchen, Suzy May–she’s Elly May’s minimally-clad sister–and her posse of programmers discuss SuSE Linux 8.0. Jethro relaxes out by the pool with his buddies. He wears a scarlet fedora hat tilted at a jaunty angle–he’s the poster man-child for Red Hat Linux. Granny stands out on the patio boiling some clothes in a huge cauldron. She loves Caldera Linux and 802.11a wireless networks. And here’s Harry Potter in a Mandrake Linux magician’s hat! Before you can say “muggle,” he’s run off to join Uncle Jed and the Slackware Linux crowd. They’re watching Star Trek re-runs and eating Cheetos in the rec room. You’ve landed in paradise–if you’re a programmer or that strange breed of consumer known as the computer hobbyist. If you’re neither, the Linux lair might seem pathetic. But you’d be wrong. This is war, the Hatfields and McCoys duking it out for the future of the operating system. Some would even call it a holy war, with Bill Gates as the Antichrist and Linus Torvalds, writer of the Linux kernel, as the Messiah. (At the very least, Bill and Linus ought to face off on MTV’s Celebrity Deathmatch.) The key difference between Linux and Microsoft has to do with the open source movement. Let Granny explain with this homespun analogy: “Say yer known far ‘n’ wide for yer squirrel stew. Now Ethelanne Stafford asks ya for the recipe. Are ya gonna tell her ‘Nope, ya can’t have it ’cause it’s a secret?’ That she’s gotta come to ya for the stew, and pay for it? “Why that ain’t neighborly t’all!” Microsoft has their squirrel stew, which the Linux camp would deride as a cholesterol-laden mess with millions of lines of bloated code. In contrast, Linux is spa cuisine. It’s lighter and healthier, the flavor clarified through an economy of hacking. A programmer can change the code because he got the complete recipe–for free. Linux is a Stone Soup for the soul of the new machine. You make your changes, I make mine, and it’s a brighter, better operating system for us all. Except for me. I use Windows, something that I’m not particularly proud of. At times, I’m actively upset by my Windows “habit,” especially after I’ve had to restart my computer five times in three hours. But you can’t discount the prevalence of Microsoft’s Office software. I’ve compromised with my husband, a Linux man: My machine boots up into either system. Our “you like to-may-toe and I like to-mah-toe” approach doesn’t work seamlessly. Like today, when I was pushing to meet a deadline. My laptop got confused, so it took 15 precious minutes to boot into Windows. Things could be worse. When my toddler son starts to program, he may decide that he wants an entirely different system, one that some 19-year-old wiz in Helsinki is just now dreaming up. Then we’ll be a triple-booting family. And I might decide to boot the computer entirely and return to pen and paper. Nancy Peponis, a principal of Luminosa Consulting, focuses on marketing and business strategy. She can be reached at nancy@luminosa-consulting.com. Copyright © 2000-2002 MarketingProfs.com All Rights Reserved

High Concept: Miracle Tablets

High Concept Dr. Ken Beer’s dream may look something like a cross between a Nintendo Game Boy and an Etch A Sketch, but he prefers to refer to it as “the future of medicine.” Beer, an entrepreneurial dermatologist, makes software for doctors to run on tablet computers. The problem is, tablet computers are just now hitting the market, which explains why Beer had to develop his software using a toy-like Casio touch-screen device that he rejiggered to suit his needs. Despite his lack of cutting-edge hardware, Beer believes that the finished software is poised to revolutionize the business of medicine while also improving patient care. First, some background on tablet computing. For years manufacturers have tried to sell the public on slate-style computers that enable users to write rather than type text. Some, like the infamous Apple Newton, made it to market and then flopped for reasons ranging from cost to clunkiness. Beginning this month, many computer makers will begin releasing next-generation tablets that, unlike their predecessors, are as powerful as PCs and boast long-life batteries and high-resolution displays. Bill Gates — whose Microsoft Corp. has created a Windows operating system for the new tablets — predicts that slate-style computers will dominate the PC market by 2006. Analysts at Forrester Research, in Cambridge, Mass., are more cautiously optimistic, saying the tablets will catch on first in paperwork-dependent industries like, say, health care. “I want it to be as simple as a McDonald’s cash register: you just touch it and it’s done,” says Dr. Ken Beer Enter Beer, a computer hobbyist. Two years ago Beer started designing comprehensive dermatology-practice software, paying freelance developers out of his own pocket. The software they produced manages a variety of tasks, from helping doctors write prescriptions and prepare bills to storing digital photographs of patients’ lesions. Using a wireless network, doctors can carry the tablets from hospital room to hospital room, instantly up-dating patients’ records or downloading results from distant labs. Beer is seeking investors and partners to help him finish and market his first program, called Dermsoftware, which is designed for dermatologists; after that, he will expand in-to other medical specialties. At $24,000 to $32,000 per system (which covers the software license, upgrades, and a Hewlett-Packard server), Beer knows that he is asking a dear price. But he is convinced that medical practices will gladly pay it. According to the Health Insurance Portability and Accountability Act of 1996, health-care providers must meet sweeping new regulations for storing, protecting, and transmitting patients’ health information by April 2003. Complying with the law could be a huge headache for doctors. Beer believes that his software offers just the relief they will need to make the transition. Incubator High Concept: Miracle Tablets Dossier: Life of the Party 60-Second Business Plan: Talking Trash Business for Sale: Plastic Burgeons Please e-mail your comments to editors@inc.com.

Toy Story

Gear Oops, we mean “personal productivity device” story. Here’s the latest crop of tiny tech tools that are generating some buzz. Look over the latest crop of electronic wanna-haves and you might recall the classic Saturday Night Live pseudo-commercial plugging a new all-purpose product called Shimmer: it’s “a floor wax and a dessert topping!” Lately, the hottest gadgets have doubled as something else. It’s a handheld computer and a digital camera! It’s a cell phone and a Web browser! (And it’ll fit in your pocket, too!) Cool? Very. Convenient? Unquestionably. Superior? Well … In general, do-it-all devices have marginal track records. Take a hyped hybrid from a couple of years back: the combination desktop fax/scanner/printer/copier. Manufacturers billed the multifunction machine as the perfect space saver for small businesses. Instead buyers often got a quick refresher course in Murphy’s Law: If anything can go wrong, it will. Not to mention the combo-device corollary: When one thing goes wrong, so does everything else. So it’s easy to view current Shimmer successors with a healthy skepticism. Still, they’re undeniably sexy, with none more seductive than the proposed Origami. Unveiled at trade shows last fall, the paperback-book-sized prototype contains a personal digital assistant (PDA), a digital camera, a digital camcorder, an MP3 audio player, an Internet-access device, and E-mail and videoconferencing terminals. The aptly named Origami, which folds and pivots for various functions, weighs a mere 10 ounces. But don’t look for it just yet. Manufacturer National Semiconductor Corp. isn’t saying exactly when (or whether) Origami will hit the shelves or what you’ll pay when it does. Already available: Handspring’s long-awaited Treo, a device that functions as a PDA, a cell phone, and a wireless-messaging and Web-access unit. Treo’s standard model, which debuted in February, retails for $399. Handspring expects to release a $599 color-screen version later this year. Both run on the Palm operating system; buyers can choose either the standard Graffiti handwriting-recognition system or a tiny thumb keyboard. On all models, the device’s cover flips up to transform it into a phone. Despite its triple capability, the 5.2-ounce Treo feels lighter and slimmer than most single-function handheld gadgets. Of course, you’re still looking at a microscopic gray-scale screen. Treo’s debut models lack analog phone and voice-activated-dialing capability. And it’s unclear if even true technophiles will want to phone home by holding a handheld computer up to their ears. Continuing the smaller-is-better theme is Fujitsu PC Corp.’s LifeBook P Series notebook computer. Fujitsu, among the computer makers racing to build the lightest laptop, pared its latest contender to 2.8 pounds stripped (3.4 pounds with its optical drive) and just over 1.5 inches thick. Despite its skinny profile, the $1,500 LifeBook P, which debuted in December, comes with a built-in slot for either a CD-RW/DVD drive or an extra battery that will power the machine for up to 14.5 hours. There are, of course, tradeoffs. The LifeBook’s keyboard is about 10% smaller than a full-size keyboard, a serious drawback for the ham-handed. Touch typists will hate the odd shift-key location (above the slash, rather than next to it). Finally, there’s the little 10.6-inch screen, a size and shape widely seen in Japan but probably disconcerting, at least initially, for American users. Most likely to grab headlines: the Tablet PC. The device, about the size of a legal pad, recognizes handwriting scribbled on its surface and is a fully functional PC with a touch screen. Tablets are flat, sleek (2 inches thick), and lightweight (less than 3 pounds). Several computer makers — including Acer, Compaq, Fujitsu PC, and Toshiba — will build the Microsoft-powered machines. Microsoft chairman Bill Gates, who says he’s already using an electronic slate, predicts that by 2006 it “will be the most popular form of PC sold in America.” Others aren’t so sure. Does the world really need yet another handheld computer? And writing-recognition technology in general still stinks. Ask any handheld user who’s scribbled “Meet with Fred Emerson” and ended up with “Mzte wth fmd-at emermhon.” But stay tuned: Gates expects sales to start late this year. Anne Stuart is a senior writer at Inc. The Inc Life How to Host the Perfect Weekend Buy Now, Pay Later The Quiet CEO Toy Story Please E-mail your comments to editors@inc.com.

A Network for Networkers

Bulletin Board Every January a sleepy swiss ski town hosts some 2,000 of the world’s most influential corporate and political leaders — from Nelson Mandela and Yasser Arafat to Jack Welch and Bill Gates — for six days of seminars and informal conversation. The 2001 World Economic Forum was the 31st such gathering of global leaders in Davos. The forum took no chances when it came to communicating with its own participants. They stayed connected with a wireless local area network. In a welcome bag, each participant received a free Compaq iPAQ pocket PC (which lists for $499). Preloaded with a complete list of participants and events, it served as a mobile conference guide. The information on the iPAQ was updated automatically through the wireless LAN whenever the participant carrying it entered the conference center. What the Davos conference did with a wireless network may still be a few years down the road for most business conferences, but the transition to handheld-based conference guides has already begun. At the International Consumer Electronics Show in Las Vegas last winter, for example, conference materials were available in a Palm-friendly format. “You just brought your own Palm device, set it in the cradle, and synced up,” says Alex Slawsby, an analyst of smart handheld devices at IDC, in Framingham, Mass. “Obviously, wireless networks would make attending big conferences a lot easier.” Bulletin Board See Bot Run Rent a Phone, Lose a Headache No Receptionist Necessary Things We Love: Home-Phone-Line Networking Log On, Turn Off, Spend Less Acronym Watch A Network for Networkers A ‘Black Box’ for Your Car Please e-mail your comments to editors@inc.com.

Not Dead Yet

realbusiness.com Commentary: Intermediaries Like the resilient peasant in the famous Monty Python scene, intermediaries on the Internet are suddenly feeling much better Just a year or so ago, conventional wisdom about middlemen on the Web went like this: Soon, there won’t be any. The underlying thinking, of course: The Web lets sellers talk directly to buyers, without agents, brokers, distributors, wholesalers, or even retailers. Why fool around with intermediaries when you, the seller, can deal directly with your ultimate customers or when you, the buyer, can go straight to the source? Cutting out those middle layers creates what Bill Gates, in his 1995 book The Road Ahead, famously termed a “friction free” business environment, permitting direct, effortless, one-to-one E-commerce. The Web, according to those ancient theories, would quickly lead to widespread extinction of entire professions: insurance and travel agents, real estate agents and stockbrokers, car dealers, computer retailers, even (or maybe especially) the editors and reporters who choose and package news. With the Web, you can trade your own stocks, book your own trips, configure your own new car or computer, buy your computer directly from the manufacturer, and report and disseminate your own news. The theory got its own spelling-bee stumper of a buzzword: disintermediation, meaning that nothing stands between producer and buyer. “Two’s company, three’s a crowd,” KPMG analyst Bob Westrope observed just two years ago, calling the predicted shortening of the supply chain “a shift in the structure of our economy not seen since the dawning of the industrial age.” As it turned out, the greatly exaggerated death of the middleman ranks among technology’s champion myths, almost as big a no-show as the Y2K bug. Intermediaries live, and many are thriving. As Michael Hammer of Hammer and Co., in Cambridge, Mass., points out, the Web hasn’t destroyed or replaced most intermediaries’ jobs. But it has transformed them. The new-millennium middleman understands that customers — both businesses and consumers — actually prefer working with intermediaries who add value to whatever they’re buying. Typically, Hammer says, that value is information, whether the product in question is a life-insurance policy, a BMW, or a Caribbean vacation. And in most cases, he adds, you’ll get that information not from the producer but from the middleman — the insurance or travel agent or the car dealer. (Even if you buy a car online, who are you going to call for a test-drive, service, or recall work? Certainly not a Web site.) That’s why, for instance, I researched my recent trip to St. Martin online but booked the flight and the hotel through my favorite travel agent, who’d been to that island three times. (She also got us a deal that was much better than any of the ones I had found on my own.) Cutting out the middleman has always sounded like an honorable idea — the right thing to do. In theory, at least, setting up a direct link between buyer and seller improves communication, saves time, reduces waste, and cuts costs. But some of those who have gone that route have quickly found themselves mired in new problems. Many start-up owners who dream of dealing directly with their customers have wound up instead in a logistical nightmare — realizing, for instance, that they can’t handle their own warehousing or distribution. Some major manufacturers have found they simply can’t win by competing with their own partners. In one well-publicized case, Levi Strauss mollified its angry retailers when, late in 1999, it stopped selling products on its own Web site. And being the target of such hostility is hardly the purview of only large companies. Bob Duncan, CEO of American Leather, a far smaller manufacturer than Levi Strauss, was labeled by a retailer as an “unethical, two-faced liar driven by insatiable greed” when the retailer assumed that Duncan was promoting the company’s furniture for sale over the Web. (See ” First Do No Harm,” Inc. Technology, No. 1, 2000.) In a similar vein, writer Stephen King hit a few snags in his attempt last year to bypass publishers and bookstores by selling his novel The Plant online in serial form. King said he’d continue writing the novel, about a vine that takes over a publishing company, as long as 75% of those who downloaded it paid $1 or $2 for each of 10 installments. But by year’s end, with only 46% of his online readers paying up, King posted Part 6 free of charge. He later put the plan on hold indefinitely, saying that he needed to devote time to other projects. Ironically, King notes in an explanation on his Web site, dozens of would-be readers told him they’d be happy to buy The Plant when it’s really published — in standard book form. (King, however, still considers the self-publishing experiment a success, citing gross sales of more than $600,000 — with no printers, publishers, or agents to pay.) The new-millennium middleman understands that customers actually prefer working with intermediaries who add value to whatever they’re buying. In fact, some of the Web’s most successful companies have been intermediaries. Search engines like Yahoo serve as middlemen between people who are seeking something and people who are offering to provide it. EBay, the pioneering auction site, offers buyers and sellers a way to find each other online. Then there’s service. The Web’s most lasting legacy may be that it’s created an expectation of 24-hour help, in person, in real time. In a 1999 survey, Forrester Research, in Cambridge, Mass., found that more than a third of people who bought something online requested service at some point during the experience. In other words, being able to buy the product or service anytime wasn’t enough; nor was it enough to be able to contact customer service later if there was a problem with the purchases. From the moment people log on to a Web site, Forrester concluded, they expect to be able to turn to other people for help. But that expectation creates new opportunities, too. Service is, in fact, the new differentiator, as Geoffrey Moore writes in Living on the Fault Line: Managing for Shareholder Value in the Age of the Internet. “Even the most product-centric of companies — automobile manufacturers, factory equipment vendors, and raw materials providers, real atom guys — are now assigning their best and brightest to the task of differentiating on services,” Moore writes. Customers increasingly place a high value on companies that offer one-stop shopping — access to a range of services in a single location. That, analysts say, bodes well for companies like Accuship.com, a Memphis-area company that shows its corporate customers all their price and service options for shipping packages. (See ” Express Delivery.”) Accuship is, in fact, a prime example of a trend highlighted in a 10-year business forecast prepared in 1998 by the Institute for the Future. The concept of disintermediation is “a mirage,” futurist Paul Saffo writes in that report. “It’s directly at odds with what is actually happening.” In fact, Saffo writes, the Internet and other technologies “enable new kinds of transactions, which lead to new market niches and, overall, make the market environment more complex.” Such changes will, of course, kill off some intermediaries, but, as Saffo notes, they will create opportunities for others. Meanwhile, those who too readily bought into the wholesale slaughter of the middleman might want to keep Saffo’s big-picture conclusion in mind for next time: “Beware of conventional wisdom, for it is nearly always wrong.” Anne Stuart is a senior writer at Inc. Technology. With no fanfare and little venture money, the companies profiled here are delivering real stuff to paying customers and making a buck in the process. There may not be any “new rules,” but there are rules, and we suspect every one of them will look familiar. DVD Empire: The Bootstrapper SitStay.com: The Mom-and-Pop Shoebuy.com: The Scorekeepers Accuship.com: The Traditionalist Fashionmall.com: The Conservative Healthcommunities.com: The Underwriter Commentary E-tailing Intermediaries The Markets Please e-mail your comments to editors@inc.com.

Cutting the Cord

Environment Wireless workplaces save time and money, and promote mobility — but they can create new headaches as well Mike Bouissey already works on the top floor of a seven-story building in Philadelphia’s Center City. But on warm, sunny days, he slips his notebook computer under his arm and heads up one more flight. Whenever weather permits, Bouissey, a project manager for Web-design company WebLinc, works on the building’s flat, asphalt-topped roof. He’s never out of touch. He forwards calls from his desk to his cell phone, and — although there’s not a cord or a cable in sight — he remains logged on to the company’s local area network (LAN), using radio waves rather than wires. He can send and receive E-mail, build Web pages, track his team’s progress, and do anything else he’d do downstairs in the office, all while sitting on a blanket in the sun. His only limitation: he must stick close to one of three domed skylights so that his computer can stay in touch with the network’s base station downstairs. Beyond that, he’s set — at least as long as his 2.5-pound Sony PictureBook’s batteries last. “If you can be outside, why not?” says Bouissey, who hasn’t noticed any slowdown in performance — either his own or that of his computer — since he began working wirelessly. “You can get away and still be connected.” “We’ll actually be able to have meetings on the roof and be tied into the network,’ says WebLinc CEO Darren Hill. He’s planning to build a rooftop deck, complete with a juice bar, power outlets, and patio furniture. Bouissey’s bosses not only indulge his wanderlust, they encourage it. This summer the company plans to build a 2,000-square-foot elevated rooftop deck, complete with a juice bar, power outlets, and patio furniture. That will let Bouissey and others work atop the 150-year-old former toy factory more comfortably (and have a better view of the Philly skyline over the brick safety walls). “We’ll actually be able to have meetings with clients on the roof and be tied into the network,” says CEO Darren C. Hill. But working without wires isn’t just a warm-weather perk for outdoor enthusiasts like Bouissey and Hill. About two-thirds of WebLinc’s 45 staffers use wireless laptop computers full-time inside the company’s 12,000-square-foot headquarters. So do most of the eight employees at financial-insurance company SuretyBond.com, a start-up that subleases a corner of WebLinc’s office space and shares its LAN. The payoff, according to devotees at both companies: true in-house mobility. People can work almost anyplace they want — not just where the wires are. Whether they’re at their desks or gathered around conference tables or lounging on rec-room couches, both companies’ wireless users are always online — either on WebLinc’s in-house network or on the Web. There’s no running back and forth to desktop computers, no logging off one machine and on to another, no hunting around for an available phone jack. From anywhere on (or in Bouissey’s case, above) the seventh floor, users just open their computers and sign on once. They then can access files, print documents, write reports, create or run presentations, check E-mail, chat in real time, do research, and, in some cases, even update their customers’ Web sites. They can also access the network with wireless handheld computers or Web-enabled phones. Hill says that going mobile makes sense for fluid, fast-growing companies like his own, which went from 3 full-time employees in 1998 to 20 in early 2000 to nearly 50 today. As WebLinc — whose customers include Crayola and Urban Outfitters — expands, it’s easy to get new employees up and running: they just sit somewhere, turn on their newly issued notebooks, and get to work. “We don’t have to run any new wires; all you need is an outlet,” Hill says. WebLinc, like many other companies, often shuffles people around as it expands. From a technology standpoint, moving is no big deal with a wireless network: workers can just pack up their little computers and go. Finally, if a machine crashes or needs service, the luckless owner just carries it over to the closest information-systems staffer and swaps it for a new one. “I can’t imagine going back to the old way,” says SuretyBond.com executive vice-president and chief operating officer Chad Rosenberg, who’s so sold on no-wire networks that he has set one up for his computers at home. “This is just too convenient.” Whether they’re at their desks or at company conference tables or lounging on rec-room couches, both companies’ wireless users are always online. WebLinc and SuretyBond.com are among a growing number of small businesses that are embracing the wireless workplace with the fervor of converts to a new religion. While no one’s keeping a company-by-company count, wireless LAN sales overall should more than triple in the next 18 months, growing from $624 million in 1999 to $3 billion in 2002, according to market research by the Cahners In-Stat Group. And while wired office complexes were until recently the real estate rage (see “High-Wired Competition,” Inc. Technology, No. 4, 2000), their wireless descendants are beginning to steal the spotlight today. In Seattle a developer is constructing a new building with no wiring for technology or telephone service, for instance; tenants — mostly high-tech businesses to start out — will arrange for their own wireless service. While everybody mentions the system’s mobility first, pioneers insist that their wire-free LANs save money, too. True, laptop computers often cost more up front than their deskbound counterparts. But other no-wire network hardware costs far less. Minerva Tantoco Hobbs, director of eTechnology for Miami-based consulting firm Answerthink, says companies can expect to spend less than $1,000 for a wireless-network hub, plus $100 to $200 for the plug-in cards that older laptops need to communicate with the base station. (Although it’s possible to convert desktop computers using the same cards, there’s usually no advantage in going that route because full-size machines aren’t designed for easy portability. So companies currently without notebook computers would, of course, need to add in the cost of buying them. However, many new notebooks from Apple, Dell, IBM, Acer, Sony, and other vendors now come with built-in wireless capability.) In addition, wire-free companies save on every foot of cable they don’t use, every piece of hardware they don’t buy, and every hour of labor they don’t spend installing, upgrading, maintaining, or moving computers — especially when those changes involve tearing out walls, ceilings, or floors. “It literally takes 10 minutes to put a wireless-network card in a computer and get it configured,” Hill says. “Compare that with the man-hours you need to run a wire through drywall.” In WebLinc’s case, the costs of going wireless included buying three AirPort base stations at about $300 each and some 20 plug-in cards at $99 to $150 each, depending on the type of computer involved. In general, switching requires little or no training: untethered users work on the same network as everyone else; they just connect to it differently. However, wireless technology has limits that many companies may find unacceptable. Most available systems won’t let users wander more than 150 feet from the base station, which works like a cellular-telephone tower, connecting individual users to the network. And there can be side effects. After installing its wireless LAN, WebLinc had to buy new telephones because all its cordless models operated on the same frequency as the computer network, causing unbearable static during calls. Like any true believers, executives in wire-free workplaces seem convinced they’re just the first of many who will find the path to enlightenment. Like many other innovations, the no-wire environment began on college campuses. In the past couple of years, at least a dozen schools, ranging from tiny Mount St. Mary College, in Newburgh, N.Y., to the Owen Graduate School of Management at Vanderbilt University, in Nashville, have gone wireless. Students, faculty, and staff at those schools can log on to their networks from anywhere on campus. The colleges like the convenience of wireless networking. Beyond that it helps cut the phone-line congestion caused by hundreds of students dialing into the Internet simultaneously. Early on, most businesses didn’t have the patience for wireless systems, which, at best, moved data at about one-fifth the speed of normal networks. But thanks to recent advancements (see “Going Mobile,” below), wireless data now moves at a respectable 10 or 11 megabits per second, about the same speed as wired connections provide. Meanwhile, costs for wireless-network cards dropped from as much as $600 two years ago to generally less than $200 today. With speed and cost issues resolved, businesses began to see advantages to going wireless. Some adopted wireless LANs as a way to quickly expand their existing networks. Others went 100% wireless. Veritel Corp., in Chicago, which makes voice-verification technology, expanded from 6 to 32 employees last year and expects to reach 80 this year. Instead of rewiring its offices for each new staffer, the company opted to use an all-wireless network from CenterBeam, allowing employees to move around inside the building. Besides, “creativity at your desk is kind of an oxymoron,” says Veritel CEO Christopher Tomes. “This allows you to take your technology into whatever space you choose.” The movement isn’t limited to high-tech companies either. Hospitals, factories, warehouses, stores, car-rental agencies, and other businesses are converting to wireless LANs, too. (See “Where the Wires Aren’t,” below.) At Blueprint Ventures, in San Francisco, all 10 employees switched to a wireless LAN last year. General partner Bart Schachter credits the change with streamlining the venture-capital firm’s meetings. “We can pick up and go to a conference room, and it’s like we never left our desks. You don’t know until you have wireless access how often somebody says ‘Oh, what’s the answer to this question?’ and you can look it up right there,” says Schachter, whose company has invested in MobileStar and other wireless technologies. “You can take notes right there. You don’t have to go back to your office and type them in. Productivity goes up 1,000%.” And at West Coast Office Interiors Superstore, in Santa Clara, Calif., employees can move freely through showrooms and offices, checking inventory, placing orders, and printing out receipts and invoices. The company’s CenterBeam network helps salespeople close deals on the spot, instead of taking up to a week to complete paperwork. With all the benefits of going wireless, are transactions as secure as they would be traveling through wires and cables? Early adopters insist their wireless LANs are at least as secure as traditional hard-wired networks, but even true believers worry about the potential threat from letting sensitive information literally float around. WebLinc’s Hill says that if he were running a financial company instead of a Web-design firm, he wouldn’t use a wireless network. As he puts it, “All security can be broken.” But in the case of his own company, he’s confident that information is as secure as it needs to be. “People can tap into any network, wired or wireless,” says Pete Privateer, president of Pelican Security, a computer-crime-prevention company in Chantilly, Va. Theoretically, hackers can infiltrate a wireless LAN from outside the building, just as they can break into a traditional network over the Internet or telephone lines. (However, they couldn’t be too far outside the building, given the technology’s maximum radius of 150 feet and its inability to penetrate the building’s brick walls.) But, Privateer and others say, the newer wireless technologies — the same ones that enable high-speed access — can be set to encrypt information so that only authorized users can decode it. “If there’s encryption, the hacker won’t get anything but garbage and won’t be able to pick anything out of it,” Privateer says. He also suggests that companies adopt systems in which employees must change their password every time they log in. That measure, combined with encrypting every transmission, may frustrate some users. But such precautions can help companies like WebLinc ensure that the only people who are looking into their computer systems from the outside are their own employees, sunbathing on the roof. Like all true believers, executives in wire-free workplaces seem convinced they’re just the first of many who will find the path to enlightenment. “In 5 to 10 years, I think the world will be wireless,” says Schachter, pointing out that other countries, including the Philippines, Finland, and Japan, already lead the United States in widespread adoption of the technology. “We don’t have to dream the future,” he says. “The future is happening.” Where the Wires Aren’t … If there’s still any doubt that wireless networking is about to go mainstream, consider this: Starbucks plans to offer wire-free Internet access in 2,100 of its 3,000 North American coffee shops within two years. In November 2000, desktop king Bill Gates introduced a prototype of the Tablet, the first Microsoft wireless computer, to much fanfare at the Comdex trade show; the device was among thousands of hot new wireless products dominating the event. Wayport Inc., in Austin, increasingly offers wireless access in airports, hotels, resorts, and conference centers; the service lets business travelers hop online without hunting for a phone line. And in the Over-the-Rhine neighborhood in downtown Cincinnati, a dozen start-up companies share a single high-speed wireless network, creating, in essence, a virtual business community. Going Mobile If you’re thinking about switching to a wireless network, you need to know about Wi-Fi. Also known by the less-friendly designation IEEE 802.11b, Wi-Fi — for wireless fidelity — refers to the newest technical standard for wireless networking. The standard boosts networking speed from sluggish — 2Mb, or 2 million bits of information per second — to supercharged at 11Mb per second. That allows wireless networks to run faster than traditional Ethernet networks, which top out at 10Mb. And that’s why businesses everywhere are suddenly interested in Wi-Fi. (Don’t confuse Wi-Fi with the much-publicized Bluetooth standard, which permits only short-range radio links between small personal devices like handheld computers and cell phones.) The Wireless Ethernet Compatibility Alliance, a high-tech industry group, awards Wi-Fi certification to wireless-networking products that meet its standards. For more information, visit www.wi-fi.org. Please e-mail your comments to editors@inc.com.

Bidding on Linux

The Linux operating system is hot. It’s cheap. And it works. But can you run your company on it? Wearing a blue windbreaker with a James G. Murphy Co. logo on it, Julie Murphy stands in the company’s muddy auction lot in Kenmore, Wash., just north of Seattle. As she looks on, men in flannel shirts and logging boots inspect the tires and climb into the cabs of the used backhoes and dump trucks that will be going on the block shortly. Each year Murphy’s company auctions off some $30 million worth of this sort of heavy equipment, along with used police cars, tools, and even the contents of an entire restaurant or sawmill. But today’s auction is different. For one thing, nearly 1,500 bidders have registered, far more people than the monthly auctions usually attract. And there’s more than the average air of expectation in the auction yard. That is largely because of just one item: a one-of-a-kind, baby blue 1971 convertible Plymouth Hemi Barracuda “muscle car.” Seized by police in Everett, Wash., in connection with a drug arrest, the car is in mint condition. No one knows how much it will go for when the bidding starts at noon, but it won’t be small change: the city of Everett has suggested that the minimum bid be set at $250,000. One fellow has flown up from Phoenix to try his luck. Other bidders are on the phone from places like Blue Springs, Mo., and St. Paul, Minn. “This is one of the most exciting things we’ve ever sold,” says Murphy. In a previous life, Murphy was a certified public accountant at Arthur Andersen. Now she is chief financial officer, controller, and office manager of James G. Murphy Co. The company was founded in 1970 by her father, James. Murphy’s older brother, Tim, is CEO and head auctioneer. Along with her many other duties, Julie Murphy is responsible for the company’s computers. Not every small business will be able to (or should) jump on Linux immediately. And this auction, like all the others her father and his fellow auctioneers have held for the past four years, will run on Linux. In the company’s cramped mail room, Murphy proudly points to a metal rack sitting in a corner behind the copier. It holds two computers that run Linux, the software program that has taken the computing world by storm. Since 1996 — long before most people had ever heard of it — James G. Murphy Co. has been using Linux to run its auctions. Today the company uses the program to run almost its entire business. Linux, a computer operating system, is essentially a version of Unix, the software that runs powerful workstations sold by companies like Sun Microsystems and Hewlett-Packard. It has two big advantages over competing operating systems (like Microsoft Windows NT, for one), says Bill Campbell, the Seattle computer consultant who installed the Murphys’ Linux system: It is dirt cheap. And it is incredibly reliable. That reliability is important if you’re in charge of a 30-employee family business running auctions that sometimes draw more than 1,000 bidders. This morning, while most of the crowd is jockeying for seats in the indoor auction hall to get the best view of the bidding on the Hemi ‘Cuda, others are lining up in the office to pay for the heavy equipment and trucks they acquired during the morning’s auctions. Using computer terminals and PCs hooked up to the Linux server, 10 cashiers are taking payments. All the information they need is already in the server: descriptions of the items to be sold were entered before the auctions began. Prospective buyers received bidder numbers when they arrived this morning. During the auction itself, workers frantically typed winning bids into the system, so when bidders come in to settle up, says Murphy, “you just punch in their number, and it tells you what lots they bought and how much they paid.” Just to be on the safe side, Murphy still uses every auctioneer’s favorite manual backup system: slips of paper. That’s how the business handled payments before buying its first computer in 1986. What would happen if the company’s computer system were to fail during a huge auction like today’s? It wouldn’t be a pretty sight, says Murphy. “I would probably just jump out the window.” Fortunately, the system has never crashed. That sort of reliability is typical of Linux computers. “Some of our clients have Linux systems that have been running for a year solid,” says Jim Capp, president of Keystone Programming Inc., a computer-consulting company in Harrisburg, Pa., that sells a lot of Linux systems. Linux holds another attraction for small businesses: it is essentially free. That’s because it was developed completely by volunteers, led by Linus Torvalds, arguably the world’s best-known computer programmer after Bill Gates. Torvalds, who started work on Linux in 1991 while he was a student at the University of Helsinki, distributes the software free on the Internet. It takes patience and Web know-how to download it, however. So most people pay a modest price — typically $30 to $59 — to get Linux from companies like Red Hat Inc., Caldera Systems Inc., and Corel Corp., which provide it on a CD-ROM, along with manuals, tech support, and other applications. Linux can also save small companies money because it runs well on older, less powerful machines. When Campbell installed E-mail and a firewall — a security gateway between the company’s computers and the Internet — at James G. Murphy Co., two years ago, he used an old 486 computer that Murphy was preparing to jettison. “I could have sold them a new computer,” Campbell says. “But Linux runs just fine on that computer, so why sell them hardware they don’t really need?” Linux also runs well on laptops, says Campbell. That’s useful to Julie Murphy, because most of her company’s auctions are run on location, sometimes at customer sites as far away as Texas or Virginia. Last November, for example, Tim Murphy and three employees headed off to the small logging town of Philomath, Oreg., where they auctioned off the saws, conveyor belts, and other equipment at two lumber mills. They took the auction software with them on an IBM ThinkPad 560 notebook computer running Linux. As with the computer system in the company’s home office, the auction cashiers used computer terminals networked to the laptop to take payments. Two years ago few people had heard of Linux. Then its impressive reliability and low cost started attracting attention. Now major computer companies like IBM, Dell, and Gateway sell it. It is widely used on the Internet — 31% of Web sites are powered by Linux — and Linux companies have pushed aside Web start-ups to become the hottest items on Wall Street. The initial public offering last December of VA Linux Systems Inc., a Sunnyvale, Calif., company that sells computers with Linux preinstalled, shot up 698% on the first day. That set a record for the highest gain made by a new stock offering. As Linux has become more widely accepted, several large companies — such as Burlington, N.J., retailer Burlington Coat Factory Warehouse Corp. and New York City’s Cendant Corp., which owns Ramada hotels and inns and Avis Rent A Car — are starting to use it. Now small organizations as well are discovering that Linux may be a good choice for them. Sam Brown, a private investigator in San Francisco, uses three Linux computers to do research on the Internet and to pick up E-mailed reports from his six investigators. And the Paducah Sun — a 135-employee newspaper in Paducah, Ky., with a circulation of about 30,000 — bought a Linux system last fall to archive stories and photographs. The newspaper considered buying an archiving system running on a computer from Sun Microsystems but decided to go with Linux instead. “It was significantly cheaper,” says publisher Jim Paxton. Both Brown and Paxton were introduced to Linux in the same way that the Murphys were, through a computer consultant. That’s now happening a lot, as folks like Campbell begin using Linux more and more. James G. Murphy Co. was the first of Campbell’s customers to begin using the system. Now nearly all the computers he installs run Linux. “In the last year I’ve put in 3 systems on SCO Unix,” Campbell says. “In the same time period I’ve installed at least 30 new systems running Linux.” Not every small business will be able to (or should) jump on Linux immediately. One problem: many software programs still don’t run on the system, says George Weiss, a research director at the Gartner Group, in Stamford, Conn. Campbell’s three customers who are not using Linux, for example, are running an accounting package from RealWorld Corp., in Manchester, N.H., which doesn’t work on Linux. And Microsoft, which views Linux as a threat, has yet to issue such software mainstays as Word or Excel for Linux. The lack of Microsoft Office apps isn’t necessarily a showstopper, however. Julie Murphy, for example, is using an office suite for Linux called Applixware, from Applix Inc., in Westboro, Mass. “If someone E-mails me a Microsoft Word file, it converts it cleanly,” she says. “You don’t know you’re not on a Windows system.” Weiss also suggests that support can be a crucial issue. “Linux is no simpler than any other version of Unix,” a notoriously complicated system, he warns. Small organizations that don’t have a trained programmer on staff should make sure they have a Linux-savvy computer consultant to install and support it, he says. Murphy was confident that Campbell knew what he was doing when he suggested switching to Linux. She’s been relying on Campbell’s computer know-how since 1988. “I don’t care what the computer is running,” she says, “as long as it works.” The bidders packed into the auction hall this morning don’t care either. Not with that one-of-a-kind Hemi on the block. At a few minutes past noon, the crowd falls silent as the bidding begins. The first bid is immediately doubled to $200,000. A man seated high up in the bleachers waves his hand — he’ll pay $225,000. That figure is immediately raised by a bidder on the phone from San Mateo, Calif. In less than five minutes, the price has jumped to $350,000. The man in the bleachers drops out. It’s now down to two: the bidder on the phone and a guy on the floor, who’s practically holding his breath as he stands next to the car he hopes to take home with him. There is a pause while the bidder on the floor converses on his cell phone and considers what to do. At last he bids $380,000. All eyes are now on the auctioneer holding the phone. Almost immediately he stabs the air with his hand, signaling yes — the bidder on the phone will go higher. The man on the floor shakes his head. He’s done. The car has just been sold to the bidder from San Mateo for $400,000. For that amount of money, you could buy a lot of Linux systems. Dan Orzech is a freelance writer in Philadelphia. For more about Linux, see “Good Stuff Cheap” in Book Value. Please e-mail your comments to editors@inc.com.