Would you pay five dollars a year, or twenty-five dollars one time to get a service that would allow you to “talk” across all instant message systems?
The big three of instant messaging, AOL, Microsoft, and Yahoo announced a deal today that will allow their instant messaging systems to interact by early 2005. The systems will use the Microsoft Live Communications Server 2005 (LCS 2005). However, in order to use the service a software licensing fee will be charged. While this is good news for businesses trying to leverage the benefits of instant messaging in the enterprise; it will leave consumers out in the cold.
Once again the Big 3 are trying to find a way to turn instant messaging into a profitable business. It remains to be seen whether businesses will migrate to the new LCS 2005 server or continue to use the public system which is free. It also calls into question the viability and roles of Face Time and IM Logic which have spent millions developing systems that allow instant messaging systems to inter-operate.
With more than 400 million instant message users worldwide there is no doubt this is an enormous market. It will be interesting to see how the service is priced. The Big 3 have already exited their efforts in the enterprise server market once. Once again, AOL says it will explore ways to allow AIM to inter-operate with MS Messenger, but don't hold your breath. This has been going on since 2000. And, with this announcement it seems less likely.
With usage prices plummeting on all competing devices it will be interested to see if businesses are willing to pay single user licensing fees north of ten dollars, or usage fees like those charged on telephone lines. Smaller corporations are already using the free “public” versions of these systems with great success. It’s unlikely they will pay licensing fees for a service they already get for free. In industries like financial services AIM already dominates and the new inter-operable system is not really a necessity. While most financial services companies are worried about uncontrolled use of IM, SPIM and viruses, they are not concerned about interoperability. So, where is the “beef”.
Would you pay five dollars a year, or twenty-five dollars one time to get a service that would allow you to “talk” across all instant message systems?
About the Author
Robert T DeMarco is CEO of IP Group in Herndon VA. IP Group offers software communication tools for use on the Internet. These include: PowerTools, Watch Right, Always on Time and IM Frame. Mr. DeMarco is the author/editor of several Weblogs and is also a member of the High Tech Crimes Industry Association (HTCIA). Mr. DeMarco has university level and corporate training and teaching experience, spent 20 years on Wall Street, acted as CEO of a small software company, and is currently discovering the world of blogging.
Robert T DeMarco
IP Group Inc.
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Thursday, July 15, 2004
Thursday, July 08, 2004
Gold regains its Sparkle
Today gold surged to a 3 month high. Serious investors should take note of this trend.
Gold regains its Sparkle
Today gold surged to a 3 month high. Serious investors should take note of this trend.
Gold is one of the most misunderstood commodities in the World. For some reason, the majority of individual investors shun the precious medal; while “smart” portfolio managers often take a 3 to 5 percent alternative investment position in gold stocks as a portfolio hedge and hedge against inflation. Like all industries there are good gold stocks and bad gold stocks. So, it does take some due diligence to determine which gold stocks to own. One of the best ways to start investing in gold stocks is to look at the components of the Philadelphia Stock Exchange Gold and Silver Sector Index (symbol: XAU). Gold mutual funds often take large positions in these stocks. You can see a list of the component stocks and weightings at PHLX Gold & Silver Sector XAU.
To read about today’s action in gold go to FX Street.com.
About the Author
Robert T DeMarco is CEO of IP Group in Herndon VA. IP Group offers software communication tools for use on the Internet. These include: PowerTools, Watch Right, Always on Time and IM Frame. Mr. DeMarco is the author/editor of several Weblogs and is also a member of the High Tech Crimes Industry Association (HTCIA). Mr. DeMarco has university level and corporate training and teaching experience, spent 20 years on Wall Street, acted as CEO of a small software company, and is currently discovering the world of blogging.
Robert T DeMarco
Send me Email
Gold regains its Sparkle
Today gold surged to a 3 month high. Serious investors should take note of this trend.
Gold is one of the most misunderstood commodities in the World. For some reason, the majority of individual investors shun the precious medal; while “smart” portfolio managers often take a 3 to 5 percent alternative investment position in gold stocks as a portfolio hedge and hedge against inflation. Like all industries there are good gold stocks and bad gold stocks. So, it does take some due diligence to determine which gold stocks to own. One of the best ways to start investing in gold stocks is to look at the components of the Philadelphia Stock Exchange Gold and Silver Sector Index (symbol: XAU). Gold mutual funds often take large positions in these stocks. You can see a list of the component stocks and weightings at PHLX Gold & Silver Sector XAU.
To read about today’s action in gold go to FX Street.com.
About the Author
Robert T DeMarco is CEO of IP Group in Herndon VA. IP Group offers software communication tools for use on the Internet. These include: PowerTools, Watch Right, Always on Time and IM Frame. Mr. DeMarco is the author/editor of several Weblogs and is also a member of the High Tech Crimes Industry Association (HTCIA). Mr. DeMarco has university level and corporate training and teaching experience, spent 20 years on Wall Street, acted as CEO of a small software company, and is currently discovering the world of blogging.
Robert T DeMarco
Send me Email
Teachers, parents and law enforcement agencies can get a free syndicated news feed for their Home Pages at Watch Right Internet Crimes Against Children Syndicated News Feed
Tuesday, July 06, 2004
Treasury Inflation Protected Securities (TIPS)
Treasury Inflation-Protected Securities, often called TIPS, are government issued securities whose value is linked to the inflation rate.
Treasury Inflation-Protected Securities, often called TIPS, are government issued securities whose value is linked to the inflation rate. Like Treasury bills, bonds and notes, TIPS are backed by the full faith and credit of the United States government. This make TIPS an ideal investment for those concerned about safety when investing. Treasuries are considered to be the safest investment in the world. TIPS are liquid securities that can be bought and then resold at any time on the open market or directly to the Treasury Department.
TIPS are very different than standard bonds. TIPS pay a stated interest rate like a typical bond (fixed interest rate); however, the principal is adjusted every six months based on the changes in the Consumer Price Index (CPI). If inflation rises the principal of the bond increases, if deflation occurs your principal decreases. Just like all government securities you can never receive less than par (100) if you hold the TIPS to maturity. One of the best features of TIPS is you receive the inflation adjusted principal or the original principal, whichever is greater when the bonds mature.
TIPS pay a fixed rate of interest. However, the interest is applied to the inflation-adjusted principal of the security. If inflation as measured by the CPI increase over the course of ownership of the TIPS every interest payment would rise. If deflation occurs then the interest payment would decline. The amount of interest paid is calculated by multiplying the inflation-adjusted principal (regardless of whether it is greater or less than the original face value) by one-half the fixed annual interest rate (TIPS pay interest every six months).
Unlike typical bonds where you pay a broker a fee, you can buy TIPS direct from the US Treasury. This means 100 percent of your investment goes to work from day one. It is not unusual to suffer a 25-50 basis point drop in yield when purchasing a bond from a broker (the commission you pay reduces the yield, something investors often fail to take into account). And, if you are purchasing a small amount of bonds, the “real” yield on your investment can be reduced by one or more percentage points. The ability to buy TIPS direct from the Treasury is certainly a feature that makes the bonds more attractive.
You can purchase TIPS with 5, 10 or 20 year maturities. This is accomplished by setting up an account with the Treasury online or through the mail; and then, by submitting your non-competitive bid amount at the time of the next auction (the amount you intend to invest). Since most Treasuries are purchased with non-competitive bids you can feel assured that you will receive a fair price at the time of the auction. If you are too busy to set up your own account your broker or bank will do it for you, but they will charge you a fee.
Next time, how to get started buying TIPS.
About the Author
Robert T DeMarco is CEO of IP Group in Herndon VA. IP Group offers software communication tools for use on the Internet. These include: PowerTools, Watch Right, Always on Time and IM Frame. Mr. DeMarco is the author/editor of several Weblogs and is also a member of the High Tech Crimes Industry Association (HTCIA). Mr. DeMarco has university level and corporate training and teaching experience, spent 20 years on Wall Street, acted as CEO of a small software company, and is currently discovering the world of blogging.
Robert T DeMarco
IP Group Inc.
Email
Other Blogs and Resources
Watch Right Internet Crimes Against Children Weblog
Robert T DeMarco
Penn State Football Fanatics Weblog
Watch Right Internet Crimes Against Children Syndicated News Feed
Treasury Inflation-Protected Securities, often called TIPS, are government issued securities whose value is linked to the inflation rate. Like Treasury bills, bonds and notes, TIPS are backed by the full faith and credit of the United States government. This make TIPS an ideal investment for those concerned about safety when investing. Treasuries are considered to be the safest investment in the world. TIPS are liquid securities that can be bought and then resold at any time on the open market or directly to the Treasury Department.
TIPS are very different than standard bonds. TIPS pay a stated interest rate like a typical bond (fixed interest rate); however, the principal is adjusted every six months based on the changes in the Consumer Price Index (CPI). If inflation rises the principal of the bond increases, if deflation occurs your principal decreases. Just like all government securities you can never receive less than par (100) if you hold the TIPS to maturity. One of the best features of TIPS is you receive the inflation adjusted principal or the original principal, whichever is greater when the bonds mature.
TIPS pay a fixed rate of interest. However, the interest is applied to the inflation-adjusted principal of the security. If inflation as measured by the CPI increase over the course of ownership of the TIPS every interest payment would rise. If deflation occurs then the interest payment would decline. The amount of interest paid is calculated by multiplying the inflation-adjusted principal (regardless of whether it is greater or less than the original face value) by one-half the fixed annual interest rate (TIPS pay interest every six months).
Unlike typical bonds where you pay a broker a fee, you can buy TIPS direct from the US Treasury. This means 100 percent of your investment goes to work from day one. It is not unusual to suffer a 25-50 basis point drop in yield when purchasing a bond from a broker (the commission you pay reduces the yield, something investors often fail to take into account). And, if you are purchasing a small amount of bonds, the “real” yield on your investment can be reduced by one or more percentage points. The ability to buy TIPS direct from the Treasury is certainly a feature that makes the bonds more attractive.
You can purchase TIPS with 5, 10 or 20 year maturities. This is accomplished by setting up an account with the Treasury online or through the mail; and then, by submitting your non-competitive bid amount at the time of the next auction (the amount you intend to invest). Since most Treasuries are purchased with non-competitive bids you can feel assured that you will receive a fair price at the time of the auction. If you are too busy to set up your own account your broker or bank will do it for you, but they will charge you a fee.
Next time, how to get started buying TIPS.
About the Author
Robert T DeMarco is CEO of IP Group in Herndon VA. IP Group offers software communication tools for use on the Internet. These include: PowerTools, Watch Right, Always on Time and IM Frame. Mr. DeMarco is the author/editor of several Weblogs and is also a member of the High Tech Crimes Industry Association (HTCIA). Mr. DeMarco has university level and corporate training and teaching experience, spent 20 years on Wall Street, acted as CEO of a small software company, and is currently discovering the world of blogging.
Robert T DeMarco
IP Group Inc.
Other Blogs and Resources
Watch Right Internet Crimes Against Children Weblog
Robert T DeMarco
Penn State Football Fanatics Weblog
Watch Right Internet Crimes Against Children Syndicated News Feed
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