Archive for March 10th, 2008

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Zoho already has an on the web office suite that makes Google Docs look like Microsoft Works. Now Zoho is expanding its software lineup from document management to people management. Zoho People is an on the web human resources application suite designed for small businesses.

At first glance, this might seem like a strange fit for a company that provides word processing, spreadsheet, and presentation software. But part of the appeal of Zoho’s office applications is their collaborative nature. You can easily share documents with your colleagues because they’re all stored on the web. So if you’re already collaborating with your employees using Zoho Office, why not manage your personnel using the same application suite?

Zoho People gives you tools for creating custom forms, creating and managing company departments, recruiting employees, creating checklists, and allowing employees to enter their own data.

[via CenterNetworks]

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Good news for Yahoo! (NASDAQ: YHOO) employees who thought they might lose their jobs if the proposed buyout by Microsoft (NASDAQ: MSFT) goes through. Microsoft believes that if it integrates the technologies of the two companies very quickly, consumers and advertisers could suffer. The FT writes:

“Technology companies, if they dive in and just smash things together for smashing them together’s sake, it’s reckless, it’s just simply reckless,” said Ray Ozzie, who took on the company’s top software technology role from Bill Gates in 2006.

While the news may be good for Yahoo! engineers, it is probably bad for investors. Shareholders in the two companies have been hoping that an integration, especially one which would spread a common search technology over the Yahoo! and MSN sites, would quickly drive superior revenue. A drawn-out combination might put those “synergies” off for several quarters, making the buyout a long-term play but not one with much earnings enhancement.

Microsoft’s stock has already moved from $33 in late January to $27.87 as of Friday’s close, at least partially because of the massive premium the company is offering for Yahoo!’s stock. Word of a very long integration process is not likely to help that.

Douglas A. McIntyre is an editor at 247wallst.com.

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The New York Times reports that one reason Boeing Co. (NYSE: BA) might have lost the $100 billion contract to build tankers — in-flight refueling aircraft — for the Air Force because the winners — Boeing’s arch-rival, EADS, parent of Toulouse, France-based Airbus and Northrop Grumman (NYSE: NOC) — took a huge risk to demonstrate their commitment to the project.

Specifically, EADS/Northrop made a $100 million bet — by building a state-of-the-art refueling boom that would funnel the fuel from the tanker to the fighter aircraft in the air — with no assurance that it would win the contract. Meanwhile, analyst Loren Thompson said that Boeing seemed arrogant and offered a plan that Air Force officials thought would deliver only 19 tankers by 2013 compared with 49 by EADS/Northrop. Thompson even accused Boeing of being unresponsive and impolite.

Much remains up in the air. EADS/Northrop claims its tanker can carry more fuel than Boeing’s altered Boeing 767. EADS/Northrop believes its bid also offered more flexibility for carrying cargo, transporting troops, airlifting refugees and delivering humanitarian aid. And there’s a dispute about how many U.S. jobs will be created by each. Boeing stated its bid would create or support 44,000 American jobs. EADS/Northrop’s figure was 25,000 jobs in 49 says.

Boeing might decide to appeal this contract award. Then the General Accounting Office (GAO) will have 100 days to rule on the appeal. Meanwhile, the Air Force claims it purchased the better plane.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned and is working on a book on Boeing.

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