The most important Tech Case in a Decade

Customer Letter – Apple

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Microsoft’s latest OS is proving more attractive to firms than Windows 8 – particularly among larger businesses.

Businesses are proving far more willing to experiment with Windows 10 than they were with Windows 8.

Six months after Windows 10’s launch nearly one in five firms, 18 percent, appear to be testing the OS, research by professional IT network Spiceworks found. In contrast, at the same point after Windows 8’s release, the OS was only being trialled by just over nine percent of businesses.

The anonymised data on what proportion of firms are using at least one Windows 10 machine was gathered from the millions of IT pros that use its software. Spiceworks says businesses of all sizes use the software to inventory devices connected to their networks.

This faster pace of enterprise adoption is backed up by figures from IT asset management company Samanage, told that 62.4 percent of its enterprise customers have at least one managed PC running Windows 10. These are sizeable businesses, with each of Samanage’s enterprise customers having an average of more than 1,000 seats. Microsoft also claims that 76 percent of its enterprise customers are piloting its new OS.

“Our data shows that IT pros were most excited about the return of the familiar start button experience in Windows 10, which reduces the need for end-user training required for Windows 8,” said Peter Tsai, IT analyst at Spiceworks in his assessment of why the new OS is proving more popular than Windows 8.

“Many IT pros also liked the free upgrade offer via Windows Update, which makes it easy for many to test the new OS. And lastly, they were looking forward to new security features that promise to make Windows 10 a more secure operating system than previous versions.”

Windows 10 is benefiting from a comparison to an unpopular OS, demand for Windows 8 was so weak that analyst firm Canalys warned in 2014 that “Microsoft risks losing momentum unless it does something drastic to turn its Windows business around”.

And while a significant proportion of businesses may be experimenting with Windows 10, it is likely to be some time before a large number move to the OS, as business typically lag behind consumers due to the complexity of managing such upgrades at scale. Of those firms testing Windows 10, about 40 percent have three or more devices running the OS, according to Spiceworks’ data.

Medium and large businesses were the most likely to have at least one Windows 10 machine Spiceworks found – with 31 percent of firms with more than 500 people trialling the OS, compared to 10 percent of companies with 50 employees or fewer.

“We also know from many conversations with IT pros that smaller companies tend to have fewer resources for OS migration, so many SMBs could be holding off on Windows 10 until they have the time and manpower to adequately test the OS for hardware and application compatibility,” said Tsai.

Last year, half of the 500 IT pros surveyed by Spiceworks expressed an interest in adopting Windows 10 inside their business.

Microsoft’s decision to phase out support for Windows 7 and 8 on new PC hardware will also put pressure on businesses not to downgrade new Windows 10 machines to an earlier OS, as has been common in the past in order to standardize corporate hardware.

Microsoft is also reporting rapid adoption of Windows 10 by home users, with more than 200 million devices worldwide running the OS.

The popularity of the OS may, in part, be a result of Microsoft’s tactics to get consumers to upgrade. This aggressive approach includes recently implementing changes that will trigger the free upgrade to Windows 10 to begin automatically installing on many Windows 7 and Windows 8.1 PCs used in homes. Microsoft is making this push as part of its drive to get one billion devices running Windows 10 by 2018.

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In a change to its longstanding support policy, Microsoft says PCs based on new CPU architectures, including Intel’s Skylake chips, will require Windows 10. A list of preferred systems will support older Windows versions on new hardware, but only for 18 months.

Enterprise customers are still the bulwark of Microsoft’s Windows business, in both the client and server segments.

Historically, those customers have also been among the most conservative, lagging years behind the latest releases of an operating system release. Those practices have been encouraged by Microsoft’s support lifecycle, which offers a generous ten years of support for each Windows release.

Effective today, that policy is changing in a subtle but significant way, with the addition of new hardware requirements for support of pre-Windows 10 releases. The company’s also publishing a preferred list of systems that will receive special attention for updates and support.

Yes, Windows 7 (currently in the Extended support phase) will continue to receive updates until January 14, 2020, and Windows 8.1 will be supported until January 10, 2023. But in a series of “clarifications” to its support policy today, the company announced that support for those older Windows versions will be available only for “previous generations of silicon.”

Going forward, as new silicon generations are introduced, they will require the latest Windows platform at that time for support… Windows 10 will be the only supported Windows platform on Intel’s upcoming “Kaby Lake” silicon, Qualcomm’s upcoming “8996” silicon, and AMD’s upcoming “Bristol Ridge” silicon.

The policy will be phased in beginning with systems based on Intel’s new 6th-generation CPUs (code-named Skylake), which debuted a few months ago. New consumer-based Skylake devices must run Windows 10 to be supported.

For enterprise customers that want to buy “future proof” new hardware based on Skylake processors running older Windows versions, Microsoft will publish “a list of specific new Skylake devices we will support to run Windows 7 and Windows 8.1.” That support will run for a period 18 months, until July 17, 2017, after which those enterprise customers will be expected to upgrade to Windows 10.

Examples of systems that will be on the initial release of the list include Dell’s Latitude 12, Latitude 13 7000 Ultrabook, and XPS 13; HP’s EliteBook Folio, EliteBook 1040 G3; and Lenovo’s ThinkPad T460s, X1 Carbon, and P70 models.

The list will continue to be updated, Microsoft says.

Any machine that earns a place on the elite enterprise support list will get very special treatment indeed, with the idea being to reassure corporate customers that these models are especially likely to perform well on Windows 10 in the new era of continuous updates:

For the listed systems, along with our OEM partners, we will perform special testing to help future proof customers’ investments, ensure regular validation of Windows Updates with the intent of reducing potential regressions including security concerns, and ensure all drivers will be on Windows Update with published BIOS/UEFI upgrading tools, which will help unlock the security and power management benefits of Windows 10 once the systems are upgraded.

These models also get special treatment for enterprises that are still planning their Windows 10 migration, with an 18-month grace period where the older OS versions are fully supported.

Through July 17, 2017, Skylake devices on the supported list will also be supported with Windows 7 and 8.1. During the 18-month support period, these systems should be upgraded to Windows 10 to continue receiving support after the period ends. After July 2017, the most critical Windows 7 and Windows 8.1 security updates will be addressed for these configurations, and will be released if the update does not risk the reliability or compatibility of the Windows 7/8.1 platform on other devices.

Of course, enterprise customers who want to stick with earlier Windows versions beyond that mid-2017 deadline have lots and lots of options, based on current generations of Intel processors such as the Broadwell and Haswell lines. Those systems, which are based on what Microsoft calls “downlevel silicon,” will continue to be fully supported for pre-Windows 10 operating systems.

In today’s blog post, Microsoft says it’s seeing “unprecedented demand from our enterprise customers” in Windows 10. Enterprise customers are especially interested in new Windows 10 security features like Credential Guard, which uses hardware virtualization to safeguard credentials from attack.

Windows 8-era enhancements like Secure Boot, which protects systems from being compromised by rootkits and bootkits, also require new hardware.

Not surprisingly, today’s announcement contains the usual cheery statements from Microsoft’s three biggest hardware partners: Dell, HP, and Lenovo. All three companies compete aggressively in the low-margin consumer market, where virtually all new systems will run Windows 10. But enterprises will pay premium prices for the improvements in battery life and security in Skylake-based mobile systems, making this the most attractive segment to target.

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let the dust settle before you attempt the free Windows 10 upgrade.

With the official Windows 10 launch and Microsoft’s promise that the upgrade for Windows 7/8.1 systems will be free for the first year after launch, you’ll have until July 29, 2016, to make your move. Just because it’s free doesn’t mean you have to rush to get your copy—unless, of course, it’s a status thing.

For the ordinary Windows user, there really isn’t any immediate need to be one of the first people to download Windows 10. In fact, you’ll probably have a better upgrade experience if you hold off for a bit. Wait for the hype to die down, wait for the load on the Windows Update servers to wane, and more importantly, wait for the first wave of updates to make their way out to the masses of Windows users who had to be the first.

Besides, unless you’re a Windows Insider program participant, chances are that you won’t be able to get Windows 10 right away anyhow.

In his July 2nd blog post, “Windows 10: Preparing to Upgrade One Billion Devices,” Terry Myerson stated:

“We want to make sure all of you have a great upgrade experience, so we’ll roll-out Windows 10 in phases to help manage the demand.”

He then goes on to say:

“Starting on July 29, we will start rolling out Windows 10 to our Windows Insiders. From there, we will start notifying reserved systems in waves, slowly scaling up after July 29th. Each day of the roll-out, we will listen, learn and update the experience for all Windows 10 users.”

That last sentence hints at the fact that the Microsoft is anticipating the possibility that there may be some glitches in the first wave of the roll out.

To be sure, I’m not suggesting that you hold out for months before you upgrade—rather, I’m saying that you may want to give it a couple of weeks just to see how others are faring with Windows 10. With Microsoft’s Windows as a service model, the ongoing testing via the extension of the Windows Insider program, and the rapid update system developed during the Windows Insider preview program, the hope is that any issues that crop up in the first weeks after initial availability will be quickly resolved.

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Do your best work with Office 2016 applications. New features make it easier to create, share, and work together wherever you are, across your favorite devices.

This year will mark the first full year of release for Microsoft’s new OS. A look at what’s in store for Windows 10 this year.

Windows 10 was described as the “last version of Windows” – an OS that would evolve over time rather than be superceded.

In the few months since Windows 10’s launch Microsoft says it has been installed on more than 110 million devices. But just what lies in store for the OS in 2016, how will it get better and what new devices will it find its way onto?

1. Windows 10 will begin automatically installing on your old machine

Windows 10 is available as a free upgrade to Windows 7 and 8.1 users and Microsoft is getting increasingly aggressive about moving these users to the new OS.

From this year Windows 10 will automatically begin installing on most Windows 7 and 8.1 machines.

Users will still need to confirm the installation manually for it to continue. However, if they choose not to proceed it’s unclear if they can cancel it altogether, with Jeremy Korst, general manager of the Windows and Devices team at Microsoft, saying only that “the customer will have the ability to delay it for some period”.

If users do upgrade but don’t like Windows 10 they will have 31 days to roll back to their previous OS.

The automatic installation, the result of Microsoft changing the status of the Windows 10 upgrade to a Recommended update, will be preceded by increasingly insistent nag messages to upgrade. These notices are already being shown to some Windows users and have been criticised for not offering an easy opt-out.

2. Microsoft Edge will get extensions

Windows 10 launched with Microsoft Edge, a new browser that cast off a lot of the legacy code holding Internet Explorer back.

However, while speedy and capable on paper, the browser suffers from its share of bugs and is missing support for extensions, a key feature found in competitors such as Chrome and Firefox.

Microsoft will rectify this omission “early next year” when Korst said it will add extensions to Edge in test builds of Windows 10, ahead of being made generally available.

Extensions are small software programs, typically written using HTML, CSS and JavaScript, that augment the functionality of a browser.

Earlier this month, Microsoft accidentally published a website announcing the introduction of extensions to test builds of Windows 10. The site, which was taken down, referenced extensions for Pinterest and Reddit.

Microsoft originally planned to add support for extensions to Edge this year.

3. Windows 10 will blur the virtual and real world

Microsoft’s Windows 10-powered augmented reality headset HoloLens will ship to developers in the first quarter of 2016.

The augmented reality headset places 3D virtual images in the wearer’s vision so that they appear part of the real world – for instance, a Minecraft landscape sits on a coffee table or a Skype video sits on the wall.

After trying a demo of the headset this week, TechRepublic senior writer Dan Patterson said that though the headset had a limited “field of vision”, “the 3D animations are smooth, easy to interactive with, and result in only marginal eyestrain”.

The HoloLens doesn’t come cheap, with the developer kit priced at $3,000 – although Microsoft says this early release is meant for developers and commercial customers.

Although HoloLens has obvious consumer and gaming uses, Microsoft is stressing its use for business and is working with NASA, AutoDesk, Volvo, Dassault Aviation, Case Western Reserve University, and other large organisations to develop applications for it.

4. More security for enterprise

The coming year will also see some notable new features added to the enterprise version of Windows 10.

Key among these additions is Enterprise Data Protection, which will allow companies to separate work and personal data on devices using containerisation file techniques. It will also encrypt data as it moves around the organisation – helping to ensure that information isn’t accessed by the wrong people.

The feature will be rolled out to people testing Windows under the Insider Program “early this year”.

5. Testers will get a peek at even earlier builds

Those testing early releases of Windows 10 under the Windows Insider Program will be able to get earlier access to new features from January this year.

Those who choose to be in the “fast” ring of the Insider Program will receive builds of Windows 10 more frequently in 2016, according to Microsoft VP Gabe Aul.

The price of testers getting their hands on early builds more regularly will be that this software will likely include more bugs, he said. Those testers who prefer stability to early access should opt for the “slow” ring, he said.

6. Cortana will be everywhere

Microsoft is planning a major upgrade to Windows 10, codenamed Redstone, next year – with reports the upgrade will put Microsoft’s virtual assistant Cortana at the core of the OS.

An unnamed source told The Verge the new Cortana will help users with a much wider range of tasks inside Windows 10, appearing contextually in documents to provide “information and assistance” and giving Cortana control over a wider range of notifications.

The other major upgrade to Cortana will reportedly be an ability to start a task on one device and pick it up on another, for instance if you get a missed call on an Android phone running the Cortana app you could reply from your Windows 10 PC via text.

7. Microsoft doubles down on Windows 10 phones as desktops

A much touted feature of Windows 10 is its ability to run a desktop OS from a phone.

Microsoft’s new Lumia 950 and 950XL handsets can – wirelessly or via a dock – be hooked up to a monitor, mouse and keyboard and used to run a Windows desktop.

The Windows 10 OS can change the look and feel of certain apps, as well as its own appearance, to suit the phone or the desktop, as well as coping with everyday desktop tasks, such as multitasking and copying files from a USB stick.

The expectation is that Microsoft will further commit to this idea of using your phone as a desktop in 2016, with rumours that Panos Panay and the team behind the high-end Surface Book laptop are working on a Surface Phone that will release next year.

8. No more free upgrade

Windows 10 is available as a free upgrade to everyone running Windows 7 or 8.1 but only for a limited time.

The offer of a free upgrade will expire on 29 July 2016 – after which point it seems that users will have to buy a Windows 10 licence.

However, due to the in-your-face tactics that Microsoft is adopting to persuade people to upgrade, it seems unlikely that Windows 7 and 8.1 users will inadvertently miss out on the offer.

9. Windows 10 replaces its predecessors on new PCs

If you’re not a fan of Windows 10 then you should buy a new PC before October.

From the end of October 2016, PC makers will have to sell new machines with Windows 10, rather than Windows 7 or 8.1.

After that point businesses that want to run older Windows versions on new machines will have to rely on downgrade rights or software assurance rights under volume license agreements.

10. Windows 10 Surface Hub arrives

From January 2016 Windows 10 will power another new piece of hardware,Microsoft’s touchscreen computer the Surface Hub.

The successor to its large-screen Perceptive Pixel displays, the Surface Hub will run a custom version of Windows 10 and various apps needed for workplace communication and collaboration, including OneNote, Skype for Business and Office.

The 55-inch, Intel Core i5-based Surface Hub model will sell for $6,999 (estimated retail price), and the Intel Core i7-based 84-inch version for $19,999 ERP.

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Every year brings with it new challenges, and new lessons, for IT in the enterprise. Here are 10 of the lessons IT learned this past year.

The end of a year is always a good time for reflection, especially so if you’re evaluating what your business did right and what you can improve upon. In an increasingly digital world, IT has quickly become one of, if not the most, important aspects of an organization. So, it should be with great care that executives and admins look back on their year and try to glean some wisdom about what can be done differently in the year to come.

Here are 10 of the most important lessons that IT learned in 2015.

1. BYOX is here to stay

As smartphone use grew to near ubiquity in the enterprise, it brought with it the trend of BYOD, or, bring your own device. While that originally referred to mobile devices such as smartphones and tablets, it spawned as host of “bring your own” everything else.

“BYOX is the new mantra with consumers bringing their own applications, cloud sharing tools, social media into the enterprise; essentially bringing their own expectations of which technology they want to use and how and where they want to work in a corporate environment,” said Chuck Pol, president of Vodafone Americas.

2. DevOps is no longer just a buzzword

The term “DevOps” gained huge popularity in 2015 as a reference to an agile method that stresses the collaboration of development and operations. The goal is to connect the writers of the code with those who maintain the systems that run it. However, DevOps continues to evolve and, although it has its own set of challenges, it could be poised to become the method of choice for enterprise IT starting in 2016.

3. Data is currency

Data, especially as it relates to big data has been steadily growing in value but 2015 felt like a tipping point. Tools for both structured and unstructured data exploded in popularity and major data service providers went public, adding credibility to the field and likely creating a better inroad into the enterprise. Also, businesses got better at distinguishing between relevant and irrelevant data.

“It is no longer credible to look at data as big static objects in a deep lake, but rather be considered a set of fast moving assets in a raging river,” said Neil Jarvis, CIO of Fujitsu America. “In 2016 and beyond, companies need to look at the data that creates business-relevant information for today and tomorrow.”

4. Finding talent is problematic

Talent shortages don’t just affect startups on the West Coast. CompTIA CIO Randy Gross said that current estimates suggest there are more than one million IT job opening across the US alone, ranging across skill level from support specialists to network admins. Enterprises are going to have to work harder to attract and retain talent.

“Wise employers with IT jobs to fill have engaged in a self-examination of the tactics and strategies they’re using to attract new talent—and adjusting accordingly,” Gross said. “For some companies, new telecommuting and remote work options have helped them fill their talent gaps.”

5. SMAC is still relevant

The SMAC stack, which stands for social, mobile, analytics, and cloud, is also known by some as the “third platform.” As all of these individual components continue to grow and thrive in the workplace, their interdependencies will grow along with them.

“Senior management must become well versed about these technologies and their possibilities to create new value and new competitive advantages in their own business and markets,” Pol said.

6. Cloud lost its fear factor

Cloud acceptance was a mixed bag for a long time, but 2015 brought a more widespread embrace of cloud technologies and services in the enterprise. In fact, some trends are making it almost a necessity.

“The complete adoption of virtualization, as well as investigation into cloud and other strategies, is far more advanced than expected—particularly amongst SMBs,” said Patrick Hubbard, technical product marketing director at SolarWinds. “Making operating systems and applications truly mobile is redefining how companies think about their IT infrastructure.”

7. The security mindset is changing

Anthem BlueCross BlueShield and Harvard University were among the major organizations that dealt with a public security breach in 2015. With today’s social media, you can almost guarantee any data breach that occurs in the enterprise won’t stay a secret. And, with the risk of a breach high, Intel Security CTO Steve Grobman said that teams must adopt a new way of thinking.

“IT must embrace the mindset that they have already been breached, now how do you protect your environment with this new default outlook?,” Grobman said.

8. Shadow IT is a line item

Shadow IT carries nowhere near the same amount of scorn it once did in the enterprise. Some organizations are even openly embracing it, and making it a foundational part of their IT strategy. And, as shadow IT continues to grow, Pol said, it needs to be properly accounted for in the budget.

“As technology continues to transform business, IT infrastructure will become more complex and more difficult to have a complete view of technology across the business,” Pol said. “The role of IT will need to become more strategic and set clear lines of accountability between IT and line of business budget holders.”

9. Employees are the biggest security risk

When most people think about security risks to their organization, the image of the hooded hacker furiously typing away in a dark room. However, employees themselves pose a real threat to the security of an organization as well. Issues such as poor password practices and using unsecured networks with company devices are a real problem. Kelly Ricker, senior vice president of events and education at CompTIA, said mobile, while helping with agility and productivity, is a cybersecurity nightmare.

“Every device that employees use to conduct business—smartphones and smartwatches, tablets and laptops—is a potential security vulnerability,” Ricker said. “Companies that fail to acknowledge and address this fact face the very real risk of becoming a victim of cyber criminals and hackers.”

10. Commoditization is a threat

With the plethora of tools available to build and replicate popular tech, it is increasingly important for organizations to guard against the threat of commoditization.

“As development cycles become shorter and the potential for intellectual property to be recreated and copied increases, it is becoming more difficult to create a sustainable competitive advantage for your products and services,” Pol said.

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Just five years after the first 4G smartphone hit the market, the wireless industry is already preparing for 5G.

Each of the four nationwide cell phone carriers, as well as smartphone chipmakers and the major network equipment companies are working on developing 5G network technology for their customers.

There are many significant hurdles that all the industry players have to clear before you’ll see a little 5G symbol next to the signal bars on your smartphone screen. For example, it has yet to be determined what 5G even means, let alone what it will look like and when it will get here.

But as consumers use up rapidly growing amounts of 4G bandwidth watching streaming videos on their phones, 5G will soon become a necessity. As telecom engineers work furiously to develop 5G technology, we’re getting a clearer picture of the who, what, where, when and why of 5G.

What is 5G?

The “G” in 3G, 4G and 5G stands for “generation.” So 5G will be the fifth generation of wireless network technology.

The standards for 5G have not yet been set. According to Bill Smith, president of AT&T’s (T, Tech30)network operations, 5G will likely be defined in 2018, and the standards for 5G will codified sometime in 2019 by the standards-setting International Telecommunication Union, a branch of the United Nations. The standards will determine which wireless technologies can be called “5G,” as well as what its characteristics must include, such as how fast it will be.

Still, it’s possible to make a very educated guess about what 5G will look like based on the emerging 5G technologies that the wireless industry is experimenting with.

Here’s the elevator pitch: 5G will be faster, smarter and less power-hungry than 4G, enabling a slew of new wireless gadgets. 5G will let us have faster smartphones, more smart-home devices and longer-lasting wearable gizmos.

How fast will 5G be?

5G has the potential to offer speeds up to 40 times faster than 4G — fast enough to stream “8K” video in 3-D or download a 3-D movie in about 6 seconds (on 4G, it would take 6 minutes).

Unfortunately for consumers, there’s a difference between lab experiments and reality. Peak speeds are fun to dream about, but in the real world, actual speeds are much slower than promised.

Nokia (NOK), one of the biggest 5G players, believes that its 5G technology will allow for real-world speeds of about 100 Megabits per second when the network is most congested — that’s about four times faster than 4G’s top speed.

Another characteristic of 5G is that it will have ultra-low latency, meaning that it could drastically reduce the amount of time it takes for the network to respond to your commands. That could give the appearance of much faster loading websites, apps, videos and messages.

How will it work?

A lot of the wireless companies’ 5G experimentation is taking place in super-high frequencies — as high as 73,000 MHz. Today’s cell phone networks broadcast signal in a range of 700 MHz to 3,500 MHz.

The advantage of high-frequency signals is that they’re capable of providing significantly faster data speeds. The disadvantage is that they travel much shorter distances and they can’t easily penetrate walls. That means thousands — perhaps even millions — of mini cell towers, or “small cells” would need to be placed on top of every lamp post, every building, inside every home and potentially every room.

That presents a host of problems. How can cell phone companies possibly process all that data? There are companies, such as Google’s recently acquired Alpental, that are working on those “backhaul” issues. But they’re not so close to a solution, according to Akshay Sharma, wireless infrastructure analyst at Gartner.

That’s why 5G might complement 4G, rather than outright replace it. In buildings and in crowded areas, 5G might provide a speed boost. But when you’re driving down the highway, 4G could be your only option — at least for a while.

When is 5G coming?

None of these questions are going to be answered any time soon. The industry’s consensus is that it will run 5G experiments in South Korea during the 2018 Winter Olympics, with mass deployments beginning sometime in 2020.

Yet Verizon (VZ, Tech30) has said that it is working on 5G technology with the aim of bringing it to market much sooner — as early as 2017.

With all the questions surrounding 5G and all the wrinkles that need to be ironed out, it’s exceedingly unlikely that anything Verizon does will be widely deployed. For example, the smartphone makers will need to develop chips that are capable of sending and receiving 5G signal without driving costs significantly higher.

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Microsoft begins selling its new highest-end Office 365 business plan, E5, on December 1 for $420 per user per year. Here’s what’s included.

Microsoft will charge users $35 per user per month, or $420 per year, for its new highest-end Office 365 business plan.

Microsoft officials went public with the pricing for Office 365 E5, its top-of-the-line commercial Office 365 offering, on November 30 during the company’s Convergence EMEA conference. Office 365 E5 is available to customers for purchase starting, December 1.

Office 365 E4 — the current high-end version of Microsoft’s Office 365 line — sells for $22 per user per month, or $264 per user, per year.

The Office 365 E5 SKU will include Skype for Business (Lync) with support for features including Cloud PBX and Meeting Broadcast; new analytics features, like Power BI Pro and Delve Organizational Analytics; and new advanced security features, such as eDiscovery, Customer Lockbox, and Safe Attachments.

Office 365 E4 includes Skype for Business with Enterprise Voice and unified messaging; the full suite of locally downloadable Office apps; and Power BI for Office 365 (which is being superseded by Power BI pro).

Microsoft is planning to retire E4 and replace it with E5. However, Office 365 E4 will remain on the price list till June 30, 2016, Microsoft officials have said.

The E1 and E3 versions of Office 365 will retain their current prices of $8 per user per month, and $20 per user per month, respectively.

Office 365 E1 users will get new work-management capabilities, as well as Skype for Business’s Meeting Broadcast functionality added to their plans for no additional charge. Office 365 E3 users will get those same two new features, as well as the option to purchase Equivio Analytics for eDiscovery. (Microsoft bought Equivio in January 2015.)

Skype Meeting Broadcast enables users to broadcast of a Skype for Business meeting on the Internet to up to 10,000 people, who can attend in a browser.

Office 365 E5 users get all the features that E1 and E3 users get, plus other analytics and networking functionality, including Cloud PBX and PSTN Conferencing.

The Skype for Business Cloud PBX with PSTN Calling service provides users with the ability to make and receive traditional phone calls in their Skype for Business client, and to manage these calls using hold, resume, forward and transfer.

PSTN Conferencing is initially available to 15 countries on December 1, with a phased roll out to international markets in the future. Cloud PBX is available worldwide starting December 1. PSTN Calling is available in the U.S. starting December 1, with a phased roll out to international markets in the future.

The fine print: PSTN Conferencing users may incur additional per-minute consumption charges, but customer can disable this feature to avoid additional billing. PSTN Calling is paid add-on for E1, E3 and E5. For E5 users, PSTN Calling costs $24 extra (per user, per month) for international and domestic calling, and $12 for domestic calling only. For E1 and E3, the international and domestic calling plan is $32 extra.

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Today, Mattel released Hello Barbie, a WiFi-enabled doll that detects language and ‘talks back.’ But how will this high-tech toy impact real-life relationships?

She wears black flats, a motorcycle jacket, and skinny jeans. Her curly, bleach-blonde hair falls just past her shoulders. She has a permanent smile and large blue eyes. And, when you talk to her, she listens.

But this young woman isn’t an ordinary friend. “Hello Barbie” is less than a foot tall, weighs just under two pounds, and is made of plastic. And she is on sale for $74.99.

Mattel’s latest Barbie, marketed for children six and up, has just hit the shelves. She is unlike any doll before her—not only does she listen, but she can talk back.

To get started, kids simply download the Hello Barbie companion app. And to turn her on, you push a button on her silver belt buckle. Hello Barbie’s necklace is both a recorder and a microphone. Using WiFi, the jewelry will pick up a child’s questions and conversations—and transmit them back to a control center for processing. Speech-recognition software, operated through ToyTalk, will detect the input. Then, Hello Barbie will reply, using one of 8,000 pre-programmed lines. Examples include:

• You know, I really appreciate my friends who have a completely unique sense of style…like you!
• Here’s what’s up: I’m worried my sister Stacie is having a hard time finishing her homework. Does that ever happen to you?
• I think Santa is real. There’s something very magical about the holiday season and I think he helps bring that magic to all of us!
• So if you were planning the biggest, raddest, most unforgettable party of the year, what would it be like?
• Of course we’re friends! Actually, you’re one of my best friends. I feel like we could talk about anything!

Hello Barbie’s dialogue, while perky and fashion-focused, reflects an attempt by Mattel to create a more well-rounded character than in the past. In 1992, Mattel pulled its string-operated Teen Talk Barbie from shelves after being criticized by The American Association of University Women for the inclusion of an unfortunate line: “math class is tough.” It is no mistake that Hello Barbie’s lines includes: “Oh nice! Fun with numbers! Teaching math sounds like a lot of fun. What kinds of things would you teach—Counting? Addition? Subtraction?”

Still, the implication that Barbie is being sold as a ‘friend’ is unsettling. “Hello Barbie can interact uniquely with each child by holding conversations, playing games, sharing stories, and even telling jokes!” boasts Mattel’s website. Hello Barbie, claims Mattel, is “Just like a real friend. [She] listens and remembers the user’s likes and dislikes, giving everyone their own unique experience.”

But is she really listening?

While Barbie may appear to listen and respond, “pretend empathy is not empathy,” said Sherry Turkle, professor at MIT and author of Reclaiming Conversation. Turkle worries about how children will understand their new ‘friend.’

“They are drawn into thinking that pretend empathy is the real thing,” said Turkle. “But objects that have not known the arc of a human life have no empathy to give. We put our children in a compromised position.”

Beyond the social implications of the doll, the capabilities of the recording technology raise privacy issues.

Using Hello Barbie involves recording voice data (see the privacy policy here) and requires parental consent. However, Mattel states that “parents and guardians are in control of their child’s data and can manage this data through the ToyTalk account.” The company also states that the recordings are protected under the “Children’s Online Privacy Protection Act,” and recordings containing personal information will be deleted once they “become aware of it.”

Still, the potential for misuse of this private data is a legitimate concern. “Obviously it is a security and privacy nightmare,” said Roman Yampolskiy, director of the Cybersecurity Lab at the University of Louisville. “[The] company [is] collecting data from kids—hackers [could be] getting access to private info.”

However, like Turkle, Yampolskiy is “more concerned about social development of the children interacting with it.”

“We are basically running an experiment on our kids and have no idea if it will make them socially awkward, incapable of understanding body language, tone of voice and properly empathize with others,” he said.

It all raises the question of what is meant, exactly by ‘real’ conversation? Turkle said, “Why would we take such risks with something so delicate, so crucial: Our children’s ability to relate to each other as human beings?”

Despite concerns, Hello Barbie is here, being shipped to homes across the globe beginning today. She is being turned on, spoken to, and listened to. And when children are finished with her, she is shut down, stood on a charger (Hello Barbie cannot stand on her own) and charged back up.

When she is turned on again, Barbie might ask: “Did you miss me at all?”

“Not even an itsy bitsy, eensy weensy bit?”

How children will respond remains to be seen.

Mattel did not respond to repeated requests for comment for this story.

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