Asia Press (June 2000)

Circulation: 300,000
Page: 3

John Patrick, Vice President of Internet Technology at IBM said the best business models on the Net would be those that provide the best customer service. Only the businesses that help customers save the most time would be successful in the Internet world, he said.

He emphasized that innovation had been an Internet feature. Small- and Medium-sized businesses in Taiwan may use the Internet to create unique business models that can pit them against major players. They may break the traditional business model and become major multinational businesses.

To speak at WCIT 2000, Patrick will also participate in the Linux Seminar organized by the IA Alliance in an effort to share IBM’s Linux strategy with the public.

He will also participate in a panel discussion on Innovative Internet Technology and Talent Cultivation.

Patrick said 7 features would characterize Internet progress. They are fast, always on, everywhere, natural, easy, intelligent and trusted. He believed Internet access via PCs would be reduced from 90% to 50% in two years and there would be many ways to access Internet, but not via PCs.

Here are his answers to the reporter’s questions.

Q: Most of the Internet companies are losing money. Why almost every corporation is developing its Internet business?
A: In fact, many companies have benefited from the Net. Though media told us some companies didn’t make money, many Internet companies are. Not every new business model will succeed, but most of the businesses will.

Q: The Internet world is moving fast. Which business model will let companies benefit from the Net?
A: The best model is one that provides the best customer service. In the foreseeable future, time will be the most precious commodity. Businesses that help people save time will win customer loyalty. And they will be the successful ones.

Q: Taiwan government may want to implement an Internet policy. What recommendations do you have for them?
A: I know Taiwan is implementing a national public infrastructure for digital ID and digital signature. This will benefit the e-business environment. It will be a good start for Taiwan.

Q: Most of the businesses in Taiwan are small- or medium-sized. How do they use the Internet to develop their global businesses?
A: The Internet has no boundary. A good concept will lead to successful businesses anywhere in the world. Innovation, not business size, is what counts in the Internet world.

Q: Everyone says the Internet is the future. It is true? If yes, what will the future be? What benefits will the Internet bring to the people?
A: Yes, the Internet, as a new medium, will be more important than ever. I believed in the future, 7 features would characterize Internet progress. They are fast, always on, everywhere, natural, easy, intelligent and trusted.

Q: Linux is generally considered the Microsoft Windows challenger. Yet there are few Linux-based applications. Will Linux beat Microsoft in the future?
A: Yes, Linux is very important. As more people get to know Linux, the number of applications will grow. It’s like Java, which more and more students use.

Circulation: 250,000 Page: 6

IBM recently announced its full support for Linux. John Patrick, Vice President of Internet Technology at IBM told the reporter that Linux would dominate the operating system (OS) market. He also believed Linux would expand its presence into the e-commerce infrastructure market.

Patrick suggested Taiwan businesses to join open source associations as discussions may bring opportunity and improve customer service.

Q: What’s in store for Linux?
A: Linux is a major invention that is reshaping rules of the game. You can say it’s an explosive product. You will be of tremendous benefits to customers if you realize it and embrace Linux early. The explosive growth can be witnessed in 1981, as PC was taking off; in 1991, as TCP/IP was emerging; and in 1999, as Linux appeared. We saw venture capitals flowed into the areas as they grew at an explosive rate.

Q: Will Linux become the dominating operating system?
A: Absolutely. But it’s not Linux’s main objective. There are a number of possibilities for Linux. IBM is focusing on Linux-based software for IBM platforms. At first, Linux will be very influential in the low- and high-end equipment markets. As of now, Linux has an excellent opportunity to incorporate an intelligent infrastructure, including implementing smtp servers, dms servers, mail servers and LAN servers. In the near future, Linux may be central to scalable e-commerce infrastructure.

Q: Linux is the hot ticket. Would you estimate its share of the OS market by 2005?
A: Linux will enter the market in a number of ways. It’s used to create super computer cluster in the high-end market. On the other hand, it’s used on mobile phones and PDAs. It’s also good for dedicated servers. Linux will soon expand its presence into e-commerce infrastructure.

Q: What changes can we witness as businesses enter the fray? What suggestions do you have for Linux players in Taiwan?
A: Obviously, there will be tremendous opportunities in Linux. Linux-based technology and expertise will be ported to other environments. My suggestions to would-be Linux players in Taiwan is, Taiwan businesses should actively participate in open source associations in an effort to create opportunities and provide quality customer service.

Yang Jih-chang: Earth Ecology To Face Crisis
Circulation: 250,000
Page: 6

John Patrick, Vice President of Internet Technology at IBM said the next-generation Internet will be faster and more convenient, enabling new products and services for businesses. As new competition emerges, existing businesses may be threatened.

Co-organized by the Industrial Technology Research Institute (ITRI), Global View Monthly Magazine and IBM Taiwan, the Panel Discussion on Innovative Internet Technology Development and Talent Cultivation invites John Patrick, vice president of Internet Technology at IBM; Chang Chun-yen, chancellor of National Chiao-tung University; Yang Jih-chang, deputy director of ITRI; and Jason Hsu, general manager of IBM Taiwan.

Yang said the popularity of Internet would drive the costs of industrial materials down and demands up, creating ecological crisis as our resources dwindles

Patrick emphasized the next-generation Internet would be better than the existing version and would be characterized by its fast, always on, everywhere, natural, easy, intelligent and trusted nature.

Patrick said experts would be able to provide consulting service via TV walls and grandparents would be able to visit their grandchildren via the Net.

The next-generation Internet will change the way we work and live and pit start-up companies against major players.

Patrick said the emergence of next-generation Internet would mean the end of PC era as mobile phones, PDAs, kiosks and IAs take PC’s place.

Hsu said, in face of the next-generation Internet, businesses must cultivate innovative-thinking talents in addition to technology.

Hsu said innovation would not be limited to technology breakthroughs. Business management, R&D, product marketing and customer service will also see changes and revolutions.

Circulation: 50,000 (IT professionals) from Page: 3

John Patrick, Vice president of Internet Technology at IBM told the participants at WCIT what he thought of the innovative Internet technology on June 13.

Patrick has been promoting the Internet technology, applications and innovations since 1990.

He said 7 features would characterize Internet progress. They are fast, always on, everywhere, natural, easy, intelligent and trusted.

Fast implies the convenience enabled by broadband. Always on means the user is always connected to the Net. Everywhere highlights the popularity of IAs, which will replace PCs as the Internet access tool of choice.

Patrick predicted Internet access via PCs would be reduced by 50% in two years.

He thought natural would be a key to Internet development, as real-time translation system would enable cross-border/ethnic communications. Trusted is another key to the next-generation Internet. Patrick thought everyone should have his own digital ID, which supports certification and authorization on the Net.

Circulation: 250,000 from Page: 15

John Patrick, Vice President of Internet Technology at IBM told the participants at WCIT what the next-generation Internet would soon be with them. He also said 7 features would characterize Internet progress. They are fast, always on, everywhere, natural, easy, intelligent and trusted.

First, broadband will enable fast Internet access. Second, dial-up Internet access will be obsolete. Third, IAs, mobile phones, PDAs and set-top boxes will soon replace PC as the Internet access tools of choice. Natural will be a key to Internet development, as real-time translation system would enable cross-border/ethnic communications. Trusted is another key to the next-generation Internet. Patrick thought everyone should have his own digital ID, which supports certification and authorization on the Net. He said Linux had changed the rules of the game.

Though everyone is committed to porting applications to various platforms, Patrick thought we should focus on developing applications.

Circulation: 50,000 (IT professionals) Page: 9

John Patrick, Vice President of Internet Technology at IBM told the participants at WCIT that IBM would embrace the rapid-developing Linux market. He said IBM would ensure every software developed for the Linux system would run on IBM platforms.

As market embraces Linux, IBM is working with Linux development communities, such as Red Hat, Caldera, SuSE, PHT and Wahoo International Enterprise.

The full IBM server line and mainframe line (Netfinity, RS/6000, AS/400, S/390) will support Linux.

When asked of IBM’s plan for embedded Linux software, Patrick said IBM would approach the issue from 3 fronts. First, IBM will ensure related standards are open and public, preventing monopoly by any single business. Second, IBM will not involve in the manufacturing of Linux platform. Instead, IBM will act as a key component supplier. Third, IBM will promote an intelligent infrastructure for Linux.

John Patrick said Linux would be the only platform that is common to low-end access devices and high-end server groups. He said a common platform would transfer the resources needed for porting to improving applications and services, which would boost e-commerce development.