The year is about to end, and like what we have been doing for the past years, we will be giving you what we think are the top I.T. stories for the year 2005.  Our selection process is simple: the event/story generated a great deal of attention and discussion and is big enough that it will change the whole complexity of the information technology industry in the years to come.

The 2005 Top I.T. Stories are as follows:

1.  The Google Effect
The label "World's Top Search Engine" is no longer enough for Google as it continues to innovate and introduce new services that makes its counterparts gasping for air.  The services and business model of Google are forcing established players to reinvent themselves.  Microsoft introduces their Live services due to the success of Google's online offerings and the recent partnership it had with Sun Microsystems to offer OpenOffice online.  Google also bought a 5% stake in AOL for billion to form an advertising venture beating Microsoft to the deal.  Once Google announced a new service, expect the other players to follow.  No doubt, Google is leading the way.

2.  Securing the Unsecure Digital World
The year 2005 saw the emergence of MMS viruses on mobile phones.  We also saw the shift from bragging rights to financial gains as the reason why incidents of identity theft and creating a slaved continues to rise.  The methods of virus propagation also changed from email attachments to phishing.  Due to security concerns, the battle for browser integrity between FireFox and Internet Explorer took centerstage as well.  Security solution providers have intensified its offerings but intruders have continued to innovate making the cat and mouse chase more challenging.  Security losses have reached billions of dollars worldwide.  The discovery of Sony BMG Music Entertainment CD copy protection software used "rootkit" code techniques normally used only by spyware and computer viruses, hidden sex scenes in Grand Theft Auto, virus found in MP3 players are prompting both online and offline consumers to ask whether a total secure digital world can be achieved or not?

3.  Let's Hear it for the iPod
Everybody says it's just a fad, Steve Jobs proved them all wrong.  From the very first release of the iPod to its latest iPod Video, Jobs have been raking the success of his product.  While other companies' tries to release their own MP3 players, consumers still prefer the iPod.  With the release of the iPod video, what would prevent Jobs to add more functionality to the iPod.  I can smell connectivity and communication very soon.

4.  Buy Buy By Oracle
Oracle went into a company buying spree this 2005 acquiring companies like PeopleSoft, Retek, Siebel, G-Log, Thor Technologies, OctetString, Innobase, Global Logistics Technologies Inc., ProfitLogic Inc, TimesTen Inc., Context Media, i-flex Solutions, Oblix Inc, TripleHop etc. Some says it is to compliment and enhance existing Oracle technologies while others said it's a simple way of killing the competitors.  During the September OpenWorld event, Oracle CEO Larry Elison said Oracle have no large acquisitions in mind.  Good decision.  After the Oracle fiscal second-quarter results showed growth rate is slowing in spite of the expensive acquisitions, it's time for Oracle to concentrate on development again rather than acquisitions.  I will talk about this lengthily next year.

5.  The Connected World
Internet has become mainstream this year with the introduction of affordable broadband connectivity like Cable, DSL, Satellite and Wireless services.  Speed has driven more users to get into the Internet and has propelled more web features to be offered.  An all-out assault on telecommunication has begun due to Internet Telephony or VoIP (Voice over Internet Protocol), a clear sign was eBays acquisition of Skype.  Microsoft will also be teaming up with MCI to compete with Skype and you can be assured that Yahoo, Google, America Online to join this bandwagon.  Technology and competition has made voice calls charges to drop tremendously bringing the battlefield to quality of service.

6.  Hype is not Might : The Ouster of Carly Fiorina
Her entry was met with excitement, her ouster was expected.  The board of directors of Hewlett-Packard Co. (HP) ousted Carly Fiorina in February 2005 after Fiorina failed to deliver her promises.  Despite strong objections, Fiorina pushed through with the Compaq acquisition.  Three years after the purchase, HP's financials continued to falter forcing the HP board to let go of Fiorina.

7.  Say Cheese : The Digital Imaging Explosion
2005 is the year where owning a device equipped with the capability to capture those important moments happened.  Most of the new mobile phone models now comes with camera and stand-alone digital cameras are becoming more affordable.  All capable of taking pictures and even video.  Total digital imaging solutions from HP, Epson and Canon continues to improve specially in the area of clarity/resolution.  The good news is that while most of the equipment are becoming more powerful, it is also becoming more and more affordable which I think is good for the consumers.  This trend will go on with price, functionality and user friendliness dictating who will emerge as the winner in this digital imaging space.

8.  The Battle For Supremacy : AMD vs INTEL
For how long Advanced Micro Devices Inc. (AMD) can keep its lead in the dual-core technology over Intel is something to watch out for.  AMD seems to have gained some grounds over Intel with AMD debuted its dual-core Opteron processor months before rival Intel released their own version.  Many analysts gave AMD the upperhand putting AMD in serious contention to wrest the microprocessor leadership from Intel.  But Intel says it's not about who hits the market first but it's about who can bring the best product on the table that wins the battle.  Expect the battle to hit up in the area of multi-core, security and virtualization technologies.  Rest assured that Intel will bounce back strong so don't count out Intel yet.

9.  Open Source Software Comes Marching In
Open Source applications continue to gain clout this 2005 not only from I.T. vendors supporting the operating systems but to adopters as well.  More and more companies have turned to open source after users realizes that it is not only affordable but Open Source applications can be used for their company's core functions, that it is stable and can compete strongly with propriety applications.  The new anti-piracy campaign also gave open source a big momentum.  Communities have also grown tremendously and has served as knowledge repositories for development for the Open Source advocates. 

10.  SMBs/SMEs : Here We Come
Companies like EMC (storage), SAP (application), Cisco (networks) and the rest intensifies its market strategy and offerings to target SME/SMB companies.  The challenge poised with SMEs is very different from enterprise clients.  Not just size but the procedure on how to do business.  SMEs/SMBs are more flexible which requires I.T. companies to be more spontaneous and patient.  The implementation time, learning curve, and support for the SMEs are far more critical than for the enterprise.  I.T. companies should be more of a service oriented company rather than to be product pushers, prove to SMEs that I.T. can really make their operations more efficient and their businesses be more competitive.  Providing financing with affordable terms will also become a challenge for SMEs.

Other 2005 top mergers and acquisitions : Symantec and Veritas,  Adobe Systems and Macromedia, Peregrine Systems and Hewlett Packard, Nortel Networks and PEC Solutions, Sprint and Nextel, SBC Communications and AT&T, Verizon and MCI, TCL and Alcatel (Phone), BenQ and Siemens (Phone),  Sun Microsystems and StorageTek, IBM and Lenovo.

Watch out for the "TechNews 2006 I.T. Predictions" next week.  Happy Holidays to all!