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Xcerion has continued to work toward the general release of its XML-based "Cloud OS," a service based on Xcerion XML Internet Operating System/3 (XIOS/3). The announcement of an official name for the service brings the company a step close to that goal; it also certainly reassures investors like Lou Perazzoli, one of the core architects of Microsoft (NSDQ: MSFT) Windows NT, and Terry Drayton, founder of HomeGrocer.com, that Xcerion's technology is almost ready for prime time.

Icloud relies on an XML virtual machine for local (and offline) operation. It thus combines the advantages of remote computing -- a central point for software distribution, storage, and updates -- with the advantages of local computing -- execution speed and user control without a bandwidth bottleneck.

Icloud offers an intriguing technology that Xcerion is calling "gesture-based computing." Jonas Thornholm, CFO of Xcerion, believes it may be the service's "killer app." Gesture-based computing is essentially real-time content sharing. It allows users to drag and drop documents from their computer to a friend's computer in real time, as if they two machines were dual monitors powered by a single machine.

At face value, the fight is about Flash vs. Silverlight. Look deeper and the tussle is over not just online video but about cloud computing, rich Internet applications and mobile phones.

The €200 billion economic rescue plan being considered this week by European Union leaders includes a proposal to spend €1 billion on bringing high-speed Internet access to rural areas. The proposal is likely to pit the Continent's telecommunications operators against satellite companies, which say they are uniquely suited to expand the broadband, or high-speed, network to underserved parts of Eastern Europe and the Alps by the end of 2010.

But support for the plan by EU government leaders, who begin a two-day meeting to consider the rescue plan Thursday is not assured. The money would come from unspent funds in the current EU budget, which under EU rules normally revert back to member countries. Germany, which contributes the most to the EU budget and stands to get the largest refund if the project is rejected, opposes the expenditure.

Across the EU, 21.7 percent of residents had broadband Internet access in July, according to the commission; 107.6 million received service from a telephone DSL line or a cable television connection and 130,592 via satellite. Only 6 percent of EU residents on average received broadband via mobile phones.

In January 2008 the Commission opened a competition law investigation related to the inclusion of various capabilities in our Windows operating system software, including Web browsing software. The investigation was precipitated by a complaint filed with the Commission by Opera Software ASA, a firm that offers Web browsing software. On January 15, 2009, the European Commission issued a statement of objections expressing the Commission’s preliminary view that the inclusion of Internet Explorer in Windows since 1996 has violated European competition law. According to the statement of objections, other browsers are foreclosed from competing because Windows includes Internet Explorer. We will have an opportunity to respond in writing to the statement of objections within about two months. We may also request a hearing, which would take place after the submission of this response. Under European Union procedure, the European Commission will not make a final determination until after it receives and assesses our response and conducts the hearing, should we request one. The statement of objections seeks to impose a remedy that is different than the remedy imposed in the earlier proceeding concerning Windows Media Player.

While computer users and OEMs are already free to run any Web browsing software on Windows, the Commission is considering ordering Microsoft and OEMs to obligate users to choose a particular browser when setting up a new PC. Such a remedy might include a requirement that OEMs distribute multiple browsers on new Windows-based PCs. We may also be required to disable certain unspecified Internet Explorer software code if a user chooses a competing browser. The statement of objections also seeks to impose a significant fine based on sales of Windows operating systems in the European Union. In January 2008, the Commission opened an additional competition law investigation that relates primarily to interoperability with respect to our Microsoft Office family of products. This investigation resulted from complaints filed with the Commission by a trade association of Microsoft’s competitors.

It’s this natural drive to reduce the cost of complements that, more than anything else, explains Google’s strategy. Nearly everything the company does, including building big data centers, buying optical fiber, promoting free Wi-Fi access, fighting copyright restrictions, supporting open source software, launching browsers and satellites, and giving away all sorts of Web services and data, is aimed at reducing the cost and expanding the scope of Internet use. Google wants information to be free because as the cost of information falls it makes more money.

As regards interoperability, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies as regards interoperability disclosures. In the complaint by ECIS, Microsoft is alleged to have illegally refused to disclose interoperability information across a broad range of products, including information related to its Office suite, a number of its server products, and also in relation to the so called .NET Framework. The Commission's examination will therefore focus on all these areas, including the question whether Microsoft's new file format Office Open XML, as implemented in Office, is sufficiently interoperable with competitors' products. As for the tying of separate software products, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies. In a complaint by Opera, a competing browser vendor, Microsoft is alleged to have engaged in illegal tying of its Internet Explorer product to its dominant Windows operating system. The complaint alleges that there is ongoing competitive harm from Microsoft's practices, in particular in view of new proprietary technologies that Microsoft has allegedly introduced in its browser that would reduce compatibility with open internet standards, and therefore hinder competition. In addition, allegations of tying of other separate software products by Microsoft, including desktop search and Windows Live have been brought to the Commission's attention. The Commission's investigation will therefore focus on allegations that a range of products have been unlawfully tied to sales of Microsoft's dominant operating system.

The "VoIP-4D Primer" is a free guide available in four major languages. The work is an effort to disseminate the use of telephony over the Internet in developing regions. The 40-page guide targets both technical and non-technical readers. The first part presents the essentials of telephony over the Internet. For those interested in the more technical details, hands-on guidelines and configuration files are included in the second part. The examples provide essential background to build your own low-cost telephony system.