May 2006 - Page 2 of 4 -

Federal, Watching the U.S. Economy.

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If you had read my earlier articles on U.S. Economy, where I had written on the short term interest rates being increased to keep the inflation at bay, then please read further for the current situation. Well the economy has been trying to pause the increase in the interest rates, to see how the inflation is responding. But there seems to be very little reaction and the Federal Reserve is caught in a dilemma on the Short Term Interest Rates.

Mr. Bernananke, the Federal Reserve Chairman, has been increasing the interest rates in phases such that the interest rates would try to ease out the growth in the inflation rates. For better understanding, let me put it in this way, when the Federal Bank increases the interest rates, further investments are discouraged due to which there is less flow of cash within the economy, while savings try to increase. Given the situation, with less cash in flow the demand for certain goods decreases, especially consumer goods which brings down the inflation rate. But the previous experience has shown that such an act bought about by the Federal Bank, will result in change of Inflation rate only after a years time and not immediately. The Chairman, Mr. Bernananke is of the opinion that the demand for house has come down a little bringing down the exorbitant real estate rates and rent rates. But this is no time for him to relax because the market is y et to respond to the increase in interest rates. Given the two option of increasing the interest rates, thereby pushing the economy into recession or by stalling, which would hamper growth of the economy, the Chairman at the moment is watching over the economy and trying to contemplate the next action.

But history has shown that the economy would eventually respond to the changes in the Interest Rates, thereby resulting in inflation rates, which would definitely be lesser than the inflation rate, which the economy had experienced.


No Barriers for Vista release:

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If you have been abreast with all the technology news, then you must surely heard of the lawsuit against Microsoft by Symantec, saying that Microsoft has been misappropriating its trade secrets, and this has been used in Vista. But Steve Balmer, the chief Executive of Microsoft has implied that this would not stall, the release of the new version of windows. As much as people are waiting for the launch of Vista, they are also on the look out of for Microsoft shares, which had undergone very bad hits, because of its various lawsuits. All I can say is that it is not easy to be successful!

Source: www.


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Dell has planned to purchase AMD chips for its servers, severing its links with Intel as far as chips for servers are concerned. Now what could be the reason for this? It is nothing but the Athlon and opeteron processor designed by AMD. Now please don’t forget that Intel still has partnership with Dell as far as desktops and laptops are concerned, and desktops are still a large powerhouse for Dell, from where most of its revenues are from. This announcement has definitely dipped Intel’s role in the market. To counter its blow. Intel has announced the design of a new chip that will be using less of electricity.

Well it can only be said that it is a bright year for AMD, who has been known to make only cheap imitation of Intel’s chips. Watch out this space on more inventions and how Intel tackles the dip and the measure it takes to prevent such a situation from occurring again.


Yahoo’s new method of minting money

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Yahoo has decided to use the potentials with consumers and get it working for them, yes I am talking about the new question and answer method wherein, a consumer asks questions and some other consumers answers for the same, thereby expanding the area of search engines and use the content that is provided by the consumers themselves. When such a system was first introduced in Taiwan, it was a good success, increase the earning of yahoo when compared to Google.

Yahoo will be using online advertising to tap potential customers. For the next five years their goal would be to concentrate on new technology and innovations. It is also using the pay per click method to harness new ways of earning money


U.S Economy and inflation.

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If you have been following my earlier articles, there were instances of increase in the inflation rate, and consecutive steps taken by the Government by increasing the Federal Reserve Ratio. But now the inflation has taken another toll, there has been an increase in the Consumer Price. Rent which comprises major part of the consumer price index has been on the increase, this is of a great concern to the economists, because once there is an increase in the services, and commodity price, it might remain so for some time to come. The inflation rate has increased to 5.25% from 5%, which of a great concern. This has affected the stock market and has been a decrease in the Dow Jones Industrial Average, this in turn hit the stock market in Europe, with the decrease in the Dow Jones market, and there has been not so good reaction in the European front.

With the increase in the mortgage rates, more and more people have been finding it difficult to own houses, and their next best option has been rented homes. This has lead to increase in the demand for houses for rent, thereby pushing the rent rates up. Since owners rent (the equivalent of ‘shadow pricing’ i.e the amount that is liable for a owner to be payable for his house assuming he rented it, by calculating equivalent rent of a similar house) is a major player while calculating the Consumer Price Index, the increase in rent has thereby increased the CPI of the US economy. But experts and economists are of the opinion that this is a temporary spell for the first quarter, and this would definitely improve in the later part of the year and the inflation can be curtailed at 2%. Well this definitely needs to be seen, meanwhile keep watching the site for improvements.

International Airports feel the pinch:

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Ever visited the Toronto Pearson Air Terminal, it has become a destination itself. What with large ceilings and modern painting adorning the wall, it has become a must see attraction, and what one could call the image booster. Quite opposite is that of new terminal at Amsterdam, with no bathroom facilities and other amenities like bridges connecting from the terminal to the Aircraft tsk tsk.What a sorry state of affairs. But the Airports have been passing on their burden to the carriers and the passengers, while they make a profit. Hence decisions have been taken in many parts of the world to reduce the fee that the airports charge to the airlines, the airports are themselves being taxed and the revenue used in other infrastructure facilities. One such airport, which has reduced its percentage chargeable to the airliners to about 10%, is the Tokyo’s Narita Airport. But while there are others like in Paris, who are continuing with the increased charged to Airliners and making further constructions.

It is fact noted that while privatised airports earn money for the shareholders, the airlines themselves fair badly, the same instances could be found in case of other industries depending on the airport and airlines, they seem to be making good profit than the airlines themselves. So in case you feel the airport is not up to the standard, think twice, you might be charged for the exuberance.



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Dell and HP (Hewlett Packard) though rivals in the Computer business, have completely different sets of goal. According to Reuters, Dell, the leader in selling Personal Computers is totally into volume selling computers to corporate houses. Its main focus being improvements in monitors and other media gizmos. While HP is making foray into Data management systems. HP wants the machines to control different sectors in corporate hosues. Michael Dell, founder of Dell computers is of the opinion that monitors and other types of computers designed to handle, photo, videos, music are in and that we might expect an immense growth of opportunities in this field. He himself is quite happy with the use of multiple screening on his computer and the productivity resulting from the same.

Guys the moral of the story is thus ‘competitiveness breeds productivity’. Whatever be the foray that the giants are into, it is this healthy competition that helps productivity and the technology growth. Who wants to be alone at the top? Source:

Microsoft cleared of its new search box.

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Remember when, Google cried foul over Microsoft’s new search box, which is part of the Internet Explorer 7. Well the regulators seem to be satisfied with the new search box. In case of MS’s search box, the search can be conducted from a specified search engine. Microsoft gives options to its clients, as to any default search engine that they can use, while using Microsoft operating system, but in case there are no default search engines chosen by the client then MSN helps them by providing its search results (hey seems, fair enough to me!). Also the search box comes as part of the upgrade programme or can be downloaded from the browser. Also part the regulators are happy with the windows vista its new software. I can hear Microsoft heaving a sigh of relief there!

While I guess Google is getting panicky on its status being the most sought after engine. Well imagine the scenario, we have a Microsoft operating system and MSN search engines along with the Internet explorer. When one doesn’t get the desired result or too less a result from Google (which not very often!) then the most obvious way would be to chose MSN (of course there are other players like yahoo). Guess Microsoft would be trailing Google soon on its tract of search engine.


Google’s new foray

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Google has gone beyond being an Internet search device and would be entering into a pact between Nokia, the largest mobile phone manufacturers. According to Wall Street Journal, who is supposed to have published this news first, Nokia is using Google’s ‘Talk Application’ in its tablet model. This tablet model is little bigger than that of a normal mobile phone (5.5 by 3.1 to be accurate) has a bigger and brighter screen, allows talking, chatting, browsing the internet. This device is supposed to be using short length wireless mechanism rather than the messaging network. Google’s main priority seems to be that of going into innovative technology, which gives it a good domain and thereby increases its usage. Other than that of Nokia, it has tie up with Motorola Inc and Deutche Telekom for expansion of its services. Good strategy! Are the other major players listening?

By the way does anyone have $400 because that is the accurate pricing of this mobile! Oops sorry device (because it cannot and is not categorised under cell phones). With the advent of newer gadgets, existing software developers and other IT people out there seems to be making good use of them.,


Posted by | Management | No Comments

Today, the 12th of May 2006 was a big day at INXS. It was

a day when INXS wanted to appreciate and encourage all of those who made INXS, what it is today, a roaring success!

Let me begin with our own team member Kumaresan, he was awarded the  ‘Most Valued Software Developer’ for April 2006.

Kumaresan was one of the first who joined us. Though a fresher, he had worked hard and effectively as our other valued developers.  He was working on platform development, which is the foundation for our current revolutionary product we are working that is about to change the world!.  He contributed much towards the project and contributed a lot towards the development.  INXS appreciates and applauds his contribution. I also take this opportunity to appreciate the
<br />work of others in our team.  Good going folks!
</p><br /><br />
<p>Words are not enough to appreciate our other valued contributors, <a href=" />Baysoft, D&Z and Added Values.

Baysoft had provided us with professional IT Infrastructure support, networking facilities and ensured smooth functioning of INXS with personal attention, if not for him we wouldn’t have been an accomplished team now. 

The creative people at D&Z had lent colours and grandeur to INXS and made it as vibrant and colourful and lively as it is now.

And last but not the least, we owe our team of intelligentsias to Added Values, they helped us to tap the most resourceful people out there. Sivakumar, Ananthnarayanan and Harishankar had accepted our appreciation on behalf of Added Values.

Good going everybody and keep up the good work!

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