Splintered Planet

Inane

Chrome, when the monochromatic mainframe terminal struck back [Google]

“I think operating systems are kind of an old way to think of the world,” Google cofounder Sergey Brin told a klatch of reporters after the Mountain View ad agency’s song and dance routine to announce its new browser, Chrome. Brin is a little older than me, which I find surprising — not because I’m so old, but because even I remember the days before there really was a personal computer on every desk (and on every lap, and in every pocket). What was there?

Mainframe terminals, or keyboards and monitors attached to a big piece of iron in a subbasement somewhere, probably built by IBM or DEC. While proponents of what until recently was called server-side computing have now opted for the friendly-sounding “cloud computing” moniker, let’s not forget that Google has built some of the biggest iron around, fulfilling an even more ancient prophesy from the days of punch cards and vacuum tubes: that someday, computers would grow so large they would require their own warehouses, and require so much power, you’d have to build them next to dams.

It makes sense from a business model angle. Google can give away open-source browser code all it wants — while keeping its search algorithm and Web index behind doors firmly locked with key cards and biometric scans. When you’re not passively paying Google by paging through independent tabs looking at ads, you’ll be actively paying Google by using its suite of office productivity applications. The browser is just another loss leader, as evidenced by Google’s history of paying everyone from Mozilla to MySpace for traffic acquisition.

Microsoft’s model predicated on proprietary code distributed in paper boxes and intellectual property restrictions writ in byzantine end user license agreements has been dated for some time now. By tethering hardware to software and upstaging everyone with design and branding, Apple has done well by maintaining manicured gardens for the wealthy. But it has clearly ceded the business market by shifting focus to consumer devices, and derives much of its hipster cache from vapid anti-establishment rhetoric. IBM, the company that Apple wanted to smash? Doing quite well selling big iron and giving away open-source code, thank you very much.

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That’s because the cloud computing worldview is one that has much to recommend it to large institutions, and IT guys at large corporations, research universities and in the government all understand it implicitly. Access to the highest level, or root, of a really big system is an awesome power. You can mete out shares of computing resources, invade people’s privacy in all sorts of heinous ways and otherwise torment the poor plebes typing away at the terminals like a true autocrat. All those computer science PhDs and technology researchers Google has hired have mainframes in their blood and ambitions far beyond two measly processor cores.


Google is familiarly setting the stage for later dominance: From earning money from Web applications built for Chrome that lease computing power from Google App Engine to providing the very electricity to juice up these massive mainframes. Meanwhile, the faster you flip from tab to tab, the more advertising inventory you create for Google through their sites and through third parties. Hundreds of clicks and impressions in a day from every Internet user worldwide, from when they wake up to check email through their day at the office to when they come home and look up American Idol highlights, whether they use Chrome or not.

So while much innovation has clearly gone into the design and architecture of the new browser, Brin’s ideas are nothing new. The practice of running applications and storing data on a centralized server is actually older than operating systems for personal computers, and the dream to vertically integrate through all levels of a trade network even older than that. (Photo by AP/Paul Sakuma and Alex Handy)

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Extra, Extra

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photograph by joe schumacher on flickr

EU freezes Moscow talks as Georgians hold giant anti-Russia rally
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Rangel

CMS Releases Report Evaluating Medicare Recovery Audit Contractor Demonstration

On July 11, 2008, the Centers for Medicare & Medicaid Services (CMS) issued a Press Release and released a report evaluating the 3-year Medicare recovery audit contractor (RAC) demonstration project.


According to the report, the RAC demonstration resulted in RACs correcting more than $1.03 billion in Medicare improper payments and $693.6 million being returned to the Medicare Trust Funds. Of the improper payments, CMS reports that 96 percent (or $992.7 million) were overpayments and 4 percent (or $37.8 million) were underpayments repaid to providers. Further, the report indicates that, as of March 2008, providers appealed 14 percent of RAC determinations and only had 4.6 percent of overpayment determinations overturned on appeal. CMS also reports that RAC contingency fees were $187.2 million during the demonstration (and estimates the cost at 20 cents for each dollar collected).

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In the report, CMS indicates that many questions about the effectiveness of the RAC principles and methods were answered during the demonstration. In fact, CMS reports that the demonstration has shown, among other things, the following:

The report also indicates that the RAC demonstration was an important tool in preparing for the implementation of the permanent RAC program and points out a number of changes that CMS has made to improve the permanent RAC program including:

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According to the report, CMS intends to implement the permanent RAC program gradually, beginning with a limited number of states in the summer of 2008. CMS reports that outreach efforts will be undertaken before overpayment notices and medical record requests are issued. In fact, the Press Release states that “[w]hen a new RAC begins to issue its first overpayment notification letters, it will be limited to ‘black-and-white’ billing issues, such a duplicate claims and wrong fee schedule amounts.” However, in Appendix R of the report, CMS cites key dates and indicates that the award of national RAC contracts and beginning of provider outreach is “TBD” or to be determined.

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CMS intends to update the report to reflect updated appeals and other statistics on a monthly basis through the summer of 2008.


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Anheuser, InBev move closer to deal (Reuters)


PHILADELPHIA/NEW YORK (Reuters) - U.S. brewer Anheuser-Busch Cos Inc (BUD.N) moved closer to a friendly, $50 billion takeover by Belgium-based InBev NV (INTB.BR), sources familiar with the situation said on Sunday.

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An announcement could be made as early as Sunday night for a deal that would create the world's largest beer maker, said the sources, who spoke on condition of anonymity.

One source said Anheuser's board was expected to hold a final vote on Sunday on the takeover of the company, which traces its origins to the Bavarian Brewery in St. Louis, Missouri, which Eberhard Anheuser bought in 1860.

The board is meeting at the Spirit of St. Louis airport in suburban Chesterfield, according to a report on KMOX Radio in St. Louis.

InBev's board was also scheduled to hold a separate meeting on Sunday, one source said.

The timing of the announcement could change if there are any last minute snags, but the major issues regarding the price, board structure, and executive roles had largely been resolved, the sources said.

InBev, the maker of Stella Artois, and Budweiser-brewer Anheuser declined to comment.

A deal would bring an amicable resolution to a month-long saga that was becoming increasingly hostile as the two companies sued each other and InBev set the stage to try to replace Anheuser's board of directors.

InBev had proposed its own slate of nominees for the board that included Adolphus Busch IV, an uncle of the current chief executive of Anheuser-Busch.

InBev lured Anheuser to the bargaining table last week by raising its offer to $70 per share from $65 per share, a 27 percent premium over Anheuser's record-high stock price in October 2002.

Shares of InBev and Anheuser surged on Friday as news of the higher offer and the negotiations emerged. Anheuser closed up 8.6 percent at $66.50, and InBev closed up more than 7 percent.

The two companies and their advisers talked in New York over the weekend, working through details such as the name for the combined company, roles for Anheuser's executives and the structure of the board, the sources said. The breakup fees if the deal collapses also were discussed over the weekend, the sources said.

"This deal is a cake, baked and ready to be taken from the oven. We wait only for the icing," said Tom Pirko, president of Bevmark, a beverage industry consulting firm based in California. "Let's get on with it."

InBev had tried to soothe some of Anheuser's concerns last month, saying it would keep Anheuser's St. Louis home as the headquarters for the North American region. Anheuser's main Budweiser beer would also become the new company's "flagship brand."

InBev also had said the new brewer's name would "evoke Anheuser-Busch's heritage," and some Anheuser directors would join the new board. InBev had promised to maintain all of Anheuser's U.S. breweries, but Anheuser wants InBev to make firm commitments to its largest U.S. distributors, one source said.

Last week, the director of the Brewery and Soft Drink Workers Conference of the International Brotherhood of Teamsters asked to meet with InBev Chairman Peter Harf and InBev Chief Executive Carlos Brito, according to a letter posted on t


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Brandon Jennings Has Made His Decision

ESPN’s Andy Katz reports:

Arizona signee Brandon Jennings has decided to make an unprecedented move to forgo playing in college and instead pursue a professional career in Europe next season before likely entering the 2009 NBA draft, Jenning’s attorney, Jeff Valle, told ESPN.com on Tuesday night.


“Over the course of the last two months I have consulted a number of people in basketball before coming to this decision,” Jennings said in a statement released through Valle. “I would like to thank the University of Arizona for their interest and support through this process.” …

Valle said Jennings will not even wait for his third standardized test result to see if he got a qualifying score after his second test was questioned by the NCAA. The results from the third test are due later this week.

“That’s a moot point now,” Valle said. “He’s not going to the University of Arizona. Brandon plans on going to Europe.”

Valle said a number of European teams have expressed an interest in signing Jennings for next season. Valle declined to say which teams and in which countries.

Valle said that the family will consult with Sonny Vaccaro and likely sign with an agent to help facilitate a contract with a European professional team.

Sonny Vaccaro recently talked at length about the importance of a top American recruit heading to Europe. He sees it, as does just about everyone, as the best possible way to stick it to the NCAA, and the NBA’s rule banning players straight from high school.

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Jennings is a mesmerizing talent who is considered an elite long-term prospect.

But will he be able to help a top European club over the next year — when he would be a college freshman? It will be a trick for him to get a big deal in Europe, where teams face a lot of pressure to win now, play very intricate offenses, and prefer to develop point guards over several years.

UPDATE: Jonathan Givony is, in addition to the guy who runs DraftExpress, a consultant who advises several European teams on things like which American players to sign and for how much.

Givony says he can’t see a top European club offering Jennings more than $100,000. “He’s not strong enough and he’s not experienced enough to run an elite club. He has a world of talent, and he’ll be unbelievable down the road, but experience trumps athleticism and talent every day European basketball,” explains Givony. “I’d be very surprised if a top team offered him more than $100,000, at most, but stranger things have happened. Jerome Moiso just had his best year ever, and averaged seven points a game. He just signed a huge deal in Russia.”

Givony points out an important way that Jennings could be valuable in Europe, however. In a year, Jennings will likely be a top NBA draft pick, and whoever drafts him will be only too happy to buy him out of a European contract for $500,000, which is the maximum allowed by the NBA.

So, in theory, a European team could sign Jennings to a longer deal with an NBA escape clause after one year. Then next summer, they could ask for half a million from an NBA team, and potentially even more from an NBA-bound Jennings himself.

In that scenario, paying Jennings more than he’s worth for the first year would be easy to swallow, and Jennings could end up with a reasonably big contract.


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