The following 10 stories, each unique in its own way, not only shape the “joy, anger, love, and grief” of the global IT landscape in 2005 but also forecast larger trends for 2006. This selection is brought to you by IDG News.
1. Oracle Acquires Siebel
The enterprise application market has now become a two-horse race between Oracle and SAP AG. Following the “bitter” acquisition of PeopleSoft for $10.3 billion in January, Oracle set its sights on Siebel Systems. In September, Oracle announced it would acquire this customer relationship management (CRM) software company for $5.85 billion. Like PeopleSoft, Siebel once thrived in the enterprise software market but has struggled against fierce competition from new rivals.
The trend of mergers and acquisitions, especially those led by Oracle, was notably hot in 2005, impacting both IT and telecommunications. Notable examples include SBC Communications acquiring AT&T, Cisco Systems purchasing Scientific-Atlanta, and the high-profile acquisition of Skype Technologies by eBay.
2. HP “Bites the Hand That Feeds It,” Fires Fiorina
Hewlett-Packard’s firing of CEO Carly Fiorina in February shocked the world. It also marked a painful acknowledgment that HP’s long-pursued strategy (culminating in the merger with Compaq) had been ineffective.
Despite opposition, Fiorina had invested in acquiring Compaq, even as the PC business was struggling to turn a profit. She believed that by selling complete hardware solutions to enterprise customers, HP could boost its server and services sales. However, three years post-acquisition, the company’s financial situation remained stagnant. Fiorina was replaced by former NCR CEO Mark Hurd, who had yet to implement significant reforms but proceeded to lay off at least 15,000 HP employees.
3. Sony Appoints Its First Foreign CEO
In March 2005, Sony Corporation fired Nobuyuki Idei and appointed Howard Stringer as the new chairman and CEO.
This marked the first time a foreigner held a top leadership position in this empire, signaling a significant shift: Sony would fully transition from analog to digital technology.
4. The Google Effect
If Google’s initial public offering (IPO) was a “top story” in 2004, this year saw the company make history by surpassing Time Warner, becoming the most valuable media company in the world. By June 2005, its stock price exceeded $400, far outpacing competitors like Yahoo and Microsoft (which hovered around $350). This success was a reward for Google’s superior search technology and its exceptional ability to monetize through advertising. However, Google faced some setbacks, including security vulnerabilities in new services and hasty launches that led to temporary shutdowns. Nevertheless, with the rising trend of “Webification” and “online services,” Google remained at the forefront.
5. Web 2.0: The Reality of Software Webification 
The dot-com crisis is becoming a distant memory. The Internet has emerged as a new platform, enabling software and desktop service providers to adopt a new business model known as Web 2.0. Google leads this trend, offering users free services and advertisers as the paying clients.
For enterprise customers, the idea of using software downloaded from the Web and charging per user is gaining traction. IT giants like IBM and Sun Microsystems are marketing new, flexible, on-demand services. Microsoft launched its “Live” service in early November, pledging to webify both Windows and the latest version of Office.
6. Xbox 360 Creates a Buzz 
The official release of the Xbox 360 marked a memorable milestone in global technology for 2005. Prior to its launch, every move by Microsoft was scrutinized. Not Windows, not Office, but the Xbox 360’s debut was the most anticipated event from Bill Gates’ empire. Everyone acknowledged that the graphics quality of Xbox 360 was a significant leap forward compared to older Xbox versions and Sony’s PlayStation 2. Thus, prepare for a fierce battle when Sony launches the PlayStation 3 in 2006.
It’s important to remember that Xbox 360 is not just a gaming device. In Microsoft’s vision, it represents the foundation of a “digital home” of the future—imagine a space around you transforming into a digital entertainment world filled with music, video, and online entertainment.
7. Titans Clash: AMD Sues Intel
In June, AMD filed an antitrust lawsuit in federal court, accusing Intel of abusing its dominant position in the chip market against AMD’s sales. Accompanying this lawsuit was a high-profile PR campaign against Intel. More importantly, AMD appeared to have won the first round in the dual-core chip battle against Intel, as the market perceived its products to have superior performance. In the retail market, AMD’s market share was also on the rise. Asia became a new battleground for the two giants, Intel and AMD, especially in China and India, where they received enthusiastic support.
8. Apple Continues to Shine:
The launch of the iPod in 2001 was a miraculous turning point, catapulting Apple from the brink of failure to the pinnacle of “glory” in no time. This trendy music device, coupled with an attractive paid digital music service, opened the floodgates for Apple. By continuing to captivate users with the introduction of the iPod Nano in September, Apple achieved an unprecedented fiscal quarter profit in its history. The success of the iPod also benefited the sales of Mac computers. In Q4 of this year, Apple shipped 1.23 million Macs.
9. Sony and the Rootkit Nightmare
In the first week of November, Sony BMG began to face significant backlash. Global media uncovered that the company’s CDs contained copy-protection software without notifying customers. The situation worsened when it was revealed that this software utilized rootkit technology typically exploited by spyware and viruses.
The more Sony attempted to calm enraged users, the deeper it sank into its mistakes. The patch it released (to make the rootkit visible to antivirus programs) was found to potentially damage Windows.
10. AOL – Where Is It Headed?
Reports indicated that Time Warner spent the entire year in tense negotiations regarding AOL’s future, including the possibility of selling off this burden (AOL began merging with Time Warner in January 2001). As the year drew to a close, the idea of “collaboration” gained attention: could there be a partnership with Microsoft’s MSN search engine, or a tighter advertising relationship with Google, the company providing search technology for AOL?
The indecision surrounding AOL’s future illustrates a reality: by the middle of the first decade of the 21st century, the online sector is dividing into two lanes: one side consists of companies successfully monetizing search and providing web services, while the other side includes those reluctant to wade through murky waters.
Translated by Cầm Thi
