In Business This Week: Headliner
Marc Andreessen: A Netscapee's Next Caper
At the ripe old age of 28, Marc Andreessen is launching his second act. The boy wonder behind Netscape Communications announced on Oct. 26 that he is forming a company called Loudcloud. He's saying little about the Menlo Park (Calif.) startup except that it will provide technology services to internet and e-commerce companies.
Andreessen, who joined America Online after it purchased Netscape in March, stepped down as AOL's chief technical officer in September. He has stayed on at AOL as a part-time adviser.
Loudcloud, whose other founders are mostly fellow Netscapees, plans to offer computing and software services to new Net sites. "They should focus on their customers and not their computers," Andreessen says. Sure, there are lots of companies offering Web hosting and similar services, Andreessen says. But Loudcloud will be different: "No one is doing what we're going to do," he says. Exactly how will be revealed next year.Edited by Mark Frankel; By Mike MoellerReturn to top
The Net Economy Keeps on Clicking
How fast are internet-related businesses growing? According to a report released on Oct. 27, revenues generated by the Internet Economy--including e-commerce, telecommunications, software, and consulting--grew by 68% from the first quarter of 1998 to the first quarter of 1999. The report by the Center for Research in Electronic Commerce at the University of Texas at Austin and commissioned by Cisco Systems, also shows a 46% increase in the number of Internet-related jobs, to 2.3 million. If current trends hold, the Center expects the Internet Economy to generate more than $500 billion in revenues in 1999, which would make it bigger than the airline industry.Edited by Mark FrankelReturn to top
A Clearer View of Windows 2000
Is this the end of Microsoft's millennium bug? The software giant is finally firming up the date for the release of Windows 2000, its oft-delayed upgrade to its operating system. After close to a year of refusing to say when the software would hit the streets, Microsoft on Oct. 27 said it will ship Windows 2000 to computer makers by yearend and said PCs loaded with the program should hit stores by mid-February. Windows 2000 won't do much for routine home PC users: It's aimed at high-end users and corporations. Microsoft will also use it as the foundation for future operating systems.Edited by Mark FrankelReturn to top
Lucent Looks Like a Looker Now
Now investors see the light. Lucent Technologies surprised doubters on Oct. 26 with news that fiscal fourth-quarter profits had jumped 50%, to $972 million, or 31 cents a share, on revenues of $10.57 billion. Analysts had expected 29 cents. The telecommunications-equipment maker said it will keep its momentum going by restructuring operations, combining marketing units from Lucent and Ascend Communications, which it bought for $20 billion in June. That could help cut costs, which are significantly higher than those of rival Nortel Networks. Lucent shares rose 5%, to 62 7/8.Edited by Mark FrankelReturn to top
A Sugar Daddy for Stanford
When James Clark does something, he does it in a big way. On Oct. 26, Stanford University disclosed that the co-founder of Silicon Graphics, Netscape Communications, and Healtheon had donated $150 million to the school, the largest gift since the university was founded 114 years ago by railroad tycoon Leland Stanford. The gift will be used to fund a state-of-the-art center for biomedical engineering and science that will be named in honor of the entrepreneur. Clark, 55, who taught at Stanford in the early 1980s, says he wants to give back to the community that helped him develop new technologies--and become fabulously wealthy.Edited by Mark FrankelReturn to top