H.P.’s Misstep Shows Risk in the Push for Big Ideas





When Hewlett-Packard spent roughly $10 billion on the software company Autonomy, it thought it was buying a slice of the future — investing in the hot trend of big data. But the deal turned out to be a debacle, and not only because H.P. wrote down $5 billion of the purchase.




The ill-fated marriage of the companies is a lesson for H.P. and other older technology giants as they throw billions at supposedly game-changing acquisitions, trying to gain a foothold in the future.


In that future, smartphones and tablets, connected to cloud-computing data centers, are the essential tools of work and play. Companies rent software over the air, rather than buying it with expensive maintenance contracts.


And vast streams of data are continually analyzed to find new patterns and make predictions about consumer behavior and product design. Autonomy, for instance, makes software that can analyze marketing patterns and advise a company on matters like where it should increase marketing resources.


These forces threaten older businesses, like H.P.’s traditional personal computer and data storage products. Other companies, like Oracle, Microsoft and Cisco, also face pressure. They are all trying to buy the future — and have the cash to do it.


In July, Microsoft decided to pay $1.2 billion for Yammer, which makes a Facebook-like social media product for the office. Oracle recently paid over $3.4 billion for two small cloud computing companies that provide software for human resources and sales management. Last Sunday, the computer networking giant Cisco agreed to pay $1.2 billion in cash for Meraki, a company that manages the free wireless service at Starbucks and other businesses.


There are lots more such deals, from these companies as well as I.B.M., SAP and others.


The pace of change is so fast that Google, so recently seen as an upstart and a giant killer, in 2011 paid $12.5 billion for Motorola Mobility to supercharge its Android smartphone business, which competes with Apple. Earlier this year, Facebook spent $750 million on Instagram so it wouldn’t miss the next thing in social media.


But identifying the next big thing can be difficult, said Jeffrey Sonnenfeld, a professor of management at Yale University. Likely as not, he said, deals like the one for Autonomy have “maybe a 40 percent success, 60 percent failure rate.”


He added, “The odds are against you succeeding, but the odds are also worth taking.”


The real hazard, he said, is in the way companies describe these acquisitions as “natural, inevitable victories.” They should be seen, he said, as “an investment, like in research and development.”


The pace of acquisitions hardly matches the level seen during the late ’90s Internet bubble, when Cisco paid $9.6 billion for three networking companies that former officials said yielded almost no benefit. In 2002, AOL Time Warner wrote down $54 billion in good will related to its troubled merger. Several telecommunications equipment makers and service providers also had multibillion-dollar write-downs.


But there are also notable successes.


EMC, a maker of data storage equipment, paid $625 million in 2003 for VMWare, which makes some of the critical technology in cloud computing. Today, after taking some of the company public, EMC’s stake is worth about $30 billion. VMWare recently took a gamble of its own, buying a next-generation networking company, Nicira, that had virtually no revenue, for $1.26 billion.


Microsoft, which also paid $8.5 billion for Skype in 2011, said Yammer was being integrated into SharePoint, Microsoft’s successful collaboration software, and will be included in its premium version of Office communications and productivity software at no cost. It did not say whether, or how, Yammer would be profitable on its own, however.


The real issue with Autonomy may be less its questionable sales than its core technology, said Leslie Owens, who follows data analysis software at Forrester Research.


“H.P. thought it was an entirely new platform, but Autonomy’s clients said it wasn’t as good as Google’s corporate search product,” she said.


Autonomy, which was founded 16 years ago, “was based on using powerful algorithms,” she said, but the software was not attuned “to new kinds of search signals, like what your friends are doing, what people like you are doing, what other data you might draw off on.” Over time those new methods attracted customers.


In a demonstration of the Autonomy product last month, H.P. appeared to have addressed some of those issues, but others remained. An application to help figure out what to pay for Web ads initially failed to work, then delivered results that appeared similar to those of several other search products.


“We remain 100 percent committed to Autonomy and its industry-leading technology,” H.P. said in a statement. “The company’s products are cutting-edge and provide many customers with unique solutions.”


In an interview Tuesday, Meg Whitman, the chief executive of H.P., indicated that the company also had strong hopes for its security software, most of which it got from other acquisitions.


H.P. has accused Autonomy of improperly accounting for much of its sales in the years before H.P. bought the company last year. It took a $5 billion noncash charge related to the purchase price.


Ms. Whitman gave Autonomy tepid support.


“It’s very disappointing,” she said of the write-down. “We’ve integrated the technology into a couple of places; we will integrate it into more.”


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With Cease-Fire Joy in Gaza, Palestinian Factions Revive Unity Pledges




Tyler Hicks/The New York Times


After the Cease-Fire:
Palestinians and Israelis returned to a semblance of normal life after eight days of lethal conflict between Israel and Hamas.







GAZA — Palestinians erupted in triumphant celebrations here on Thursday, vowing new unity among rival factions and a renewed commitment to the tactic of resistance, while Israel’s leaders sought to soberly sell the achievements of their latest military operation to a domestic audience long skeptical of cease-fire deals like the one announced the night before.




After eight days of intense Israeli shelling from air and sea that killed 162 Gazans, including at least 30 militant commanders, and flattened many government buildings and private homes, people poured onto the bomb-blasted streets, beaming as they shopped and strolled under the shield of the cease-fire agreement reached Wednesday in Cairo. The place was awash in flags, not only the signature green of the ruling Hamas party but also the yellow, black and red of rivals Fatah, Islamic Jihad and the Popular Front for the Liberation of Palestine, a rainbow not visible here in years.


Despite the death and destruction, Hamas emerged emboldened, analysts said, not only because its rockets had landed near Tel Aviv and Jerusalem, but also from the visits and support by Arab and Muslim leaders, potentially resetting the balance of power and tone in Palestinian politics, as leaders from various factions declared the peace process dead.


“The blood of Jabari united the people of the nation on the choice of jihad and resistance,” Ismail Haniya, the Hamas prime minister, declared in a televised speech, referring to the commander Ahmed al-Jabari, killed in an Israeli airstrike at the beginning of the operation last week. “Resistance is the shortest way to liberate Palestine.”


There were neither celebrations nor significant protests across the border in Israel, where people in southern cities passed the first day in more than a week without constant sirens signaling incoming rockets sending them to safe rooms. Instead, an uneasy, even grim calm set in. The military announced that an officer, Lt. Boris Yarmulnik, 28, had died from wounds sustained in a rocket attack the day before, bringing the death toll on the Israeli side to six, four of them civilians. The Israeli authorities announced several arrests, including of an Arab Israeli citizen, in a bus bombing in Tel Aviv on Wednesday that revived memories of the violence from the last Palestinian uprising.


But there was collective relief in Israel as thousands of army reservists, sent to the Gaza border ahead of a possible ground invasion, gradually began returning home. With national elections eight weeks away, Israeli politicians tried to showcase accomplishments without raising expectations.


“It could last nine months or it could last nine weeks,” Defense Minister Ehud Barak said of the cease-fire. “When it does not last, we will know what to do. We see clearheadedly the possibility that we will have to do this again.”


And so it went on the day after the latest round in the decades-old Israeli-Palestinian conflict. What was widely heralded as a game changer by Palestinian politicians and independent analysts alike was viewed by Israeli officials and commentators as a maintenance mission that had succeeded in its stated goals: restoring quiet after months of intensifying rocket fire, and culling the weapons cache of Gaza’s armed groups.


Details of the cease-fire agreement announced Wednesday by Secretary of State Hillary Rodham Clinton and the Egyptian foreign minister remained unclear. Both sides pledged to stop the violence, and Palestinians say Israel will loosen its restrictions on fishing off Gaza’s Mediterranean coastline and farming along its northern and eastern borders. But the critical question of whether the border crossings would be open wide for people and commerce was not fully addressed, with only a vague promise that discussions would ensue after 24 hours. The exact agenda, time, location and even participants in these discussions have not been announced.


At the same time, Mustafa Barghouti, a West Bank leader who has spent the past several days in Gaza, said the Palestinian factions had agreed to meet in Cairo for another round of unity talks in the next few days, as President Mahmoud Abbas of the Palestinian Authority prepares to take his case for observer-state status to the United Nations next week. Though Hamas and Fatah, the party Mr. Abbas leads, have signed four reconciliation agreements in the five years since Hamas took control of Gaza after winning elections here, Mr. Barghouti said this time was different.


“Hamas is stronger, of course, and Abbas is having to change his line because negotiations failed,” he said after appearing with Mr. Haniya at a rally. “This time Israel felt the heat of the Arab Spring, and Gaza was not isolated; the whole Arab world was here. The road is open for unity.”


First, though, Hamas faces an enormous rebuilding effort, with at least 10 of its government buildings — including the ministries of culture, education and interior; the prime minister’s headquarters; and police stations — now reduced to rubble littered with payroll sheets and property tax rolls. A spokesman said that the government kept most records on laptops, but the Abu Khadra, a huge complex of constituent services, is gone.


Dr. Hassan Khalaf, director of Al Shifa Hospital, which was not attacked, dismissed the worry. “We can gather under the sky under a tent,” he said. “They can come to my house.”


In Jerusalem, Dan Meridor, a senior minister of intelligence and atomic energy, told reporters that Israel had “used force in a very moderate and measured way.” He said the military had struck 10 times the number of targets compared with the previous government’s invasion of Gaza four years ago but killed far fewer people than during that invasion: slightly over 10 percent. One of the main military achievements, he said, was the destruction of most of the long-range Iranian Fajr-5 missiles in Gaza.


Jodi Rudoren reported from Gaza, and Isabel Kershner from Jerusalem. Fares Akram contributed reporting from Gaza, and Tamir Elterman from Sderot, Israel.



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Tech’s New (Geographical) Frontier: ‘Silicon Prairie’





DES MOINES — As Ben Milne sought money for the mobile-payment company he began developing here three years ago, investors responded with rejections by the dozens.




Eventually, he coaxed $1 million from a pair of local investors. His app, Dwolla, has since attracted more than 100,000 users, and now moves $30 million to $50 million in transactions a month.


So when he decided to seek a second round of financing last year, Mr. Milne, a 29-year-old college dropout, had an easier sell. This time investors courted him. This year, he announced that Dwolla had drawn $5 million more in capital from investors on both coasts, including Ashton Kutcher and a firm with Twitter and Foursquare in its portfolio.


From Des Moines to Omaha to Kansas City — a region known more for its barns than its bandwidth — a start-up tech scene is burgeoning. Dozens of new ventures are laying roots each year, investors are committing hundreds of millions of dollars to them, and state governments are teaming up with private organizations to promote the growing tech community. They are calling it — what else? — the Silicon Prairie.


Although a relatively small share of the country’s “angel investment” deals — 5.7 percent — are done in the Great Plains, the region was just one of two (the other is the Southwest) that increased its share of them from the first half of 2011 to the first half of this year, according to a report commissioned by the Angel Resource Institute, Silicon Valley Bank and CB Insights.


Fifteen to 20 start-ups, most of them tech-related, are now established each year in eastern Nebraska, a more than threefold increase from five years ago, according to the Omaha Chamber of Commerce. Today, there is more than $300 million in organized venture capital available in the state, as well as tax credits for investors; six years ago there was virtually none, according to the chamber.


Google Fiber’s first ultrafast Internet connection drew about a dozen start-ups to a neighborhood in Kansas City, Kan. And over the past seven months, about 60 start-ups have presented their ideas in Kansas City at weekly forums organized by Nate Olson, an analyst with the Ewing Marion Kauffman Foundation. In Iowa, Startup City Des Moines, an incubator financed with $700,000 in public and private money, including a quarter-million dollars from the state, received applications from 160 start-ups over the past two years. It has accepted 9 so far.


“Traditionally, you’d say, ‘Hey, if I want the safe lifestyle, I’ll stay here and I’ll do what generations before have done,’ ” said Jeff Slobotski, an Omaha native who four years ago started Silicon Prairie News, a Web site covering the region’s tech scene. Now, he continued, “there is a newer potential in terms of what can take place here and not having to hop on the first plane out of here — saying, ‘Hey, I’m going to set up shop in the Midwest in our cities and make a go at it here.’”


Still, the region’s entrepreneurs insist that they are not striving to replicate Silicon Valley or other well-known tech hubs like Boston.


“We’re creating different types of start-ups using local ingredients,” said Christian Renaud, a principal at an information technology start-up incubator here.


Among the companies that have started in the region over the past few years are Ag Local, a firm that created an online marketplace for trading meat; EyeVerify, which verifies people’s identities through eye-vein patterns; and Tikly, which created a platform for bands to sell concert tickets. But there also are many start-ups outside the information technology realm, focusing on fields like biotechnology, advanced manufacturing and medical devices.


Many entrepreneurs credit Silicon Prairie News for the region’s start-up growth. In addition to writing about start-up activity, The News also organizes conventions that connect entrepreneurs and investors. In the four years since its creation, Silicon Prairie News has covered the emergence of more than 80 companies in the region and more than 50 additional endeavors that spawned mobile or Web apps.


The Silicon Prairie still lags in national recognition as a start-up hub, however. Capital remains relatively sparse, and software engineers are in shorter supply than on the coasts.


“We’re just not aware of, potentially, the opportunities that exist in a variety of places in the middle of the country,” said Stephen T. Zarrilli, the president and chief executive of Safeguard Scientifics, a Philadelphia venture capital firm that has invested in companies across the country but not in the Great Plains.


Tech enthusiasts in the region are hoping to change that by pointing to other strengths: lower costs and a work force focused more on building strong companies than moving on to the next big thing, they say.


“In Nebraska and the Midwest in general, because the work ethic is so strong, you will find people that will work like they worked on the farm,” said Gordon Whitten, the chairman of VoterTide, an Omaha start-up that tracks and analyzes social media trends for campaigns, media companies and others.


Dwolla exemplifies both the potential and the challenges for the region’s start-ups.


Business owners here said that few people in Des Moines seemed familiar with Dwolla, which allows real-time money transfers that are less costly for merchants than credit card fees. Yet the fast-talking, matter-of-fact Mr. Milne, in his jeans and untucked shirts, has proved to be a savvy ambassador for his company and the region. He always pays with Dwolla when he can.


“How much do I owe you?” he asked a barista at a coffee shop he frequents in Des Moines, his hometown, before tapping his iPhone and watching his payment register on the shop’s touch screen.


He eagerly rattles off the advantages of building Dwolla here, where his headquarters boast all the trappings of Silicon counterculture: beer-stocked refrigerators, neon orange accent walls with well-used whiteboards tacked to them, and a legal counsel who comes to work in flip-flops.


One of the biggest boons, he said, was siphoning the expertise of executives in the city’s robust financial services sector. They advised him on structuring the company so it would not have to hold customers’ money, saving millions of dollars in licensing and bonding costs. That structure also led the company to create a unique system for transferring money without the usual days of processing delays.


“I don’t know if we would have found that relationship in the Valley,” Mr. Milne said. “We just hit so many golden-nugget opportunities in Des Moines and golden-nugget pieces of feedback.”


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Well: Officials Warn Against Baby Sleep Positioners

Health officials are warning parents not to use a special device designed to help keep babies in certain positions as they sleep. The device, called a sleep positioner, has been linked to at least 13 deaths in the last 15 years, officials with two federal agencies said on Wednesday.

“We urge parents and caregivers to take our warning seriously and stop using these sleep positioners,” Inez Tenenbaum, the chairman of the Consumer Product Safety Commission, said in a statement.

The sleep positioner devices come primarily in two forms. One is a flat mat with soft bolsters on each side. The other, known as a wedge-style positioner, looks very similar but has an incline, keeping a child in a very slight upright position.

Makers of the devices claim that by keeping infants in a specific position as they sleep, they can prevent several conditions, including acid reflux and flat head syndrome, a deformation caused by pressure on one part of the skull. Many are also marketed to parents as a way to help reduce a child’s risk of sudden infant death syndrome, or SIDS, which kills thousands of babies every year, most between the ages of 2 months and 4 months.

But the devices have never been shown in studies to prevent SIDS, and they may actually raise the likelihood of sudden infant death, officials say. One of the leading risk factors for sudden infant death is placing a baby on his or her stomach at bedtime, and health officials have routinely warned parents to lay babies on their backs. They even initiated a “Back to Sleep” campaign in the 1990s, which led to a sharp reduction in sudden infant deaths.

With the positioner devices, if an infant rolls onto the stomach, the child’s mouth and nose can press up against a bolster or some other part of the device, leading to suffocation. Even if placed on the back, a child can move up or down in the positioner, “entrapping its face against a bolster or becoming trapped between the positioner and the crib side,” Gail Gantt, a nurse consultant with the Food and Drug Administration, said in an e-mail. Or the child might scoot down the wedge in a way that causes the child’s mouth and nose to press into the device.

“The baby’s movement may also cause the positioner to flip on top of the baby, trapping the baby underneath the positioner or between the positioner and the side of the crib,” she said.

Of the 13 babies known to have suffocated in a sleep positioner since 1997, most died after they rolled from their sides onto their stomachs. The Consumer Product Safety Commission has also received dozens of reports of babies who were placed on their sides or backs, “only to be found later in hazardous positions within or next to the product,” the F.D.A. said in a statement.

Many baby books for new parents specifically urge against using sleep positioners, and the American Academy of Pediatrics does not support their use for SIDS prevention. Though the F.D.A. has never approved the positioners for the prevention of SIDS, it has in the past approved a number of the devices for the prevention of gastroesophageal reflux disease and flat head syndrome. But the agency said that in light of the new safety data, it believed any benefits from using the devices were outweighed by the risk of suffocation.

As of Wednesday, the agency is explicitly advising parents to stop using sleep positioners, and it has asked manufacturers of the devices to submit clinical data showing that the benefits of their products outweigh the risk of serious harm. In addition to avoiding the devices, experts say, parents should keep things like pillows, comforters, quilts and bumpers away from their infants and their cribs. Soft bedding can increase the likelihood of a baby suffocating.

“The safest crib is a bare crib,” Dr. Susan Cummins, a pediatric expect with the F.D.A., said in a statement. “Always put your baby on his or her back to sleep. An easy way to remember this is to follow the ABC’s of safe sleep – Alone on the Back in a bare Crib.”

Read More..

Well: Officials Warn Against Baby Sleep Positioners

Health officials are warning parents not to use a special device designed to help keep babies in certain positions as they sleep. The device, called a sleep positioner, has been linked to at least 13 deaths in the last 15 years, officials with two federal agencies said on Wednesday.

“We urge parents and caregivers to take our warning seriously and stop using these sleep positioners,” Inez Tenenbaum, the chairman of the Consumer Product Safety Commission, said in a statement.

The sleep positioner devices come primarily in two forms. One is a flat mat with soft bolsters on each side. The other, known as a wedge-style positioner, looks very similar but has an incline, keeping a child in a very slight upright position.

Makers of the devices claim that by keeping infants in a specific position as they sleep, they can prevent several conditions, including acid reflux and flat head syndrome, a deformation caused by pressure on one part of the skull. Many are also marketed to parents as a way to help reduce a child’s risk of sudden infant death syndrome, or SIDS, which kills thousands of babies every year, most between the ages of 2 months and 4 months.

But the devices have never been shown in studies to prevent SIDS, and they may actually raise the likelihood of sudden infant death, officials say. One of the leading risk factors for sudden infant death is placing a baby on his or her stomach at bedtime, and health officials have routinely warned parents to lay babies on their backs. They even initiated a “Back to Sleep” campaign in the 1990s, which led to a sharp reduction in sudden infant deaths.

With the positioner devices, if an infant rolls onto the stomach, the child’s mouth and nose can press up against a bolster or some other part of the device, leading to suffocation. Even if placed on the back, a child can move up or down in the positioner, “entrapping its face against a bolster or becoming trapped between the positioner and the crib side,” Gail Gantt, a nurse consultant with the Food and Drug Administration, said in an e-mail. Or the child might scoot down the wedge in a way that causes the child’s mouth and nose to press into the device.

“The baby’s movement may also cause the positioner to flip on top of the baby, trapping the baby underneath the positioner or between the positioner and the side of the crib,” she said.

Of the 13 babies known to have suffocated in a sleep positioner since 1997, most died after they rolled from their sides onto their stomachs. The Consumer Product Safety Commission has also received dozens of reports of babies who were placed on their sides or backs, “only to be found later in hazardous positions within or next to the product,” the F.D.A. said in a statement.

Many baby books for new parents specifically urge against using sleep positioners, and the American Academy of Pediatrics does not support their use for SIDS prevention. Though the F.D.A. has never approved the positioners for the prevention of SIDS, it has in the past approved a number of the devices for the prevention of gastroesophageal reflux disease and flat head syndrome. But the agency said that in light of the new safety data, it believed any benefits from using the devices were outweighed by the risk of suffocation.

As of Wednesday, the agency is explicitly advising parents to stop using sleep positioners, and it has asked manufacturers of the devices to submit clinical data showing that the benefits of their products outweigh the risk of serious harm. In addition to avoiding the devices, experts say, parents should keep things like pillows, comforters, quilts and bumpers away from their infants and their cribs. Soft bedding can increase the likelihood of a baby suffocating.

“The safest crib is a bare crib,” Dr. Susan Cummins, a pediatric expect with the F.D.A., said in a statement. “Always put your baby on his or her back to sleep. An easy way to remember this is to follow the ABC’s of safe sleep – Alone on the Back in a bare Crib.”

Read More..

State of the Art: Nokia Lumia 920 and HTC Windows Phone 8X Are Great, and Yet





Thanksgiving, is it? I’ll tell you what I’m thankful for: competition.




Because competition drives innovation. Innovation leads to improvement. Improvement begets happiness.


In the tech world, some companies do their most innovative work when their backs are against the wall — especially Microsoft. Last month, it took the wraps off Windows Phone 8, the most polished edition yet of its beautiful, crystal-clear software for touch-screen phones. (My review of Windows Phone 8 is at http://j.mp/Qqfz2F.)


Unfortunately, as a Microsoft product manager told me understatedly, “We have an awareness problem.” Translation: Nobody is buying Windows phones. And since nobody’s buying them, nobody’s writing apps for them. And since nobody’s writing apps — well, you can see where this is going.


Still, Microsoft isn’t giving up. This month, Windows Phone 8 arrives aboard two fascinating new phones: the Nokia Lumia 920 ($100 with a new AT&T contract) and the HTC Windows Phone 8X ($200 from AT&T, Verizon or T-Mobile).


It’s funny about Nokia and HTC; they, too, are fallen giants. Nokia was the world’s largest cellphone maker for 14 years straight; not anymore. At the moment, it’s in seventh place among smartphone makers. It has shed tens of thousands of employees. HTC is struggling, too, having sold 36 percent fewer smartphones this year than last.


How intriguing, then, that HTC and Nokia have each chosen Microsoft as its savior, and vice versa. Loser + loser = winner?


Yes, actually. The two new phones have a lot in common — for one thing, they’re both awesome. For another, both have bigger, sharper screens than the iPhone’s famous Retina screen. (The HTC and Nokia phones have 4.3- and 4.5-inch screens. That’s 1,280 by 720 pixels, packed in 341 and 332 to the inch.)


Both have rounded backs and edges, which make them both exceptionally comfortable to hold. (The curve also makes it easy to pull them out of your pocket the right way.)


Both come in a choice of bright colors. Both phones have the same blazing fast processor. Both can get onto their respective carriers’ 4G LTE data networks (meaning very fast Internet), in the cities where those are available.


And get this — both of these phones can also charge without being plugged in. That’s right: magnetic charging is finally built right into phones. Come home at the end of the day, throw your keys in the bowl, set the phone down on the charging pad (a $50 option) — and a little chime tells you that it’s happily charging, even though no cable is in sight.


It’s pretty great. It will become even greater if this charging method (an industry standard called Qi, pronounced chee) catches on. Someday there may be charging surfaces at coffee shops, airports and hotel rooms. (Only the Verizon version of the HTC phone has this feature turned on — not the AT&T or T-Mobile versions.)


Both phones also have built-in NFC chips. These allow near-field communications, which means “this phone can do things when you tap it against another gadget.” The promise is that you’ll be able to tap on a cash-register terminal to pay for something; tap against an NFC-enabled bus shelter ad to download promotional goodies; tap two phones together to transfer a photo or address; and tap against a Bluetooth speaker to “pair” it with the phone.


In practice, there’s more to it than that. Unfortunately, the tap only introduces the phones; Bluetooth or some other technology is needed to complete the connection. And Microsoft’s coming tap-to-pay initiative is incompatible with the one Google has spent millions of dollars setting up at cash registers across the land. But we can always hope.


The HTC Windows Phone 8X is the smaller of the two new phones, but even so, it dwarfs the iPhone — it’s wider, taller, heavier and thicker. If you get the Verizon model, your Internet experience will be faster and better in more cities than on the Nokia phone, which is available only on AT&T.


The back panel is faintly textured, so you’re less likely to drop this phone than you are the shiny-backed Nokia. But the buttons — power, volume, camera — are skinny and utterly flush with the phone’s body; you practically need an ice pick to push them in.


E-mail: pogue@nytimes.com



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Egypt Leader and Obama Forge Link in Gaza Deal


Lefteris Pitarakis/Associated Press


Israelis in the town of Sderot watched a Palestinian missile on Wednesday, before a cease-fire.







WASHINGTON — President Obama skipped dessert at a long summit meeting dinner in Cambodia on Monday to rush back to his hotel suite. It was after 11:30 p.m. and his mind was on rockets in Gaza rather than Asian diplomacy. He picked up the telephone to call the Egyptian leader who is the new wild card in his Middle East calculations.




Over the course of the next 25 minutes, he and President Mohamed Morsi of Egypt hashed through ways to end the latest eruption of violence, a conversation that would lead Mr. Obama to send Secretary of State Hillary Rodham Clinton to the region. As he and Mr. Morsi talked, Mr. Obama felt they were making a connection. Three hours later, at 2:30 in the morning, they talked again.


The cease-fire brokered between Israel and Hamas on Wednesday was the official unveiling of this unlikely new geopolitical partnership, one with bracing potential if not a fair measure of risk for both men. After a rocky start to their relationship, Mr. Obama has decided to invest heavily in the leader whose election caused concern because of his ties to the Muslim Brotherhood, seeing in him an intermediary who might help make progress in the Middle East beyond the current crisis in Gaza.


The White House phone log tells part of the tale. Mr. Obama talked with Mr. Morsi three times within 24 hours and six times over the course of several days, an unusual amount of one-on-one time for a president. Mr. Obama told aides he was impressed with the Egyptian leader’s pragmatic confidence. He sensed an engineer’s precision with surprisingly little ideology. Most important, Mr. Obama told aides that he considered Mr. Morsi a straight shooter who delivered on what he promised and did not promise what he could not deliver.


“The thing that appealed to the president was how practical the conversations were — here’s the state of play, here are the issues we’re concerned about,” said a senior administration official who spoke on the condition of anonymity to discuss private conversations. “This was somebody focused on solving problems.”


The Egyptian side was also positive about the collaboration. Essam el-Haddad, the foreign policy adviser to the Egyptian president, described a singular partnership developing between Mr. Morsi, who is the most important international ally for Hamas, and Mr. Obama, who plays essentially the same role for Israel.


“Yes, they were carrying the point of view of the Israeli side but they were understanding also the other side, the Palestinian side,” Mr. Haddad said in Cairo as the cease-fire was being finalized on Wednesday. “We felt there was a high level of sincerity in trying to find a solution. The sincerity and understanding was very helpful.”


The fledgling partnership forged in the fires of the past week may be ephemeral, a unique moment of cooperation born out of necessity and driven by national interests that happened to coincide rather than any deeper meeting of the minds. Some longtime students of the Middle East cautioned against overestimating its meaning, recalling that Mr. Morsi’s Muslim Brotherhood constitutes a philosophical brother of Hamas even if it has renounced violence itself and become the governing party in Cairo.


“I would caution the president from believing that President Morsi has in any way distanced himself from his ideological roots,” said Robert Satloff, executive director of the Washington Institute for Near East Policy. “But if the president takes away the lesson that we can affect Egypt’s behavior through the artful use of leverage, that’s a good lesson. You can shape his behavior. You can’t change his ideology.”


Other veterans of Middle East policy agreed with the skepticism yet saw the seeds of what might eventually lead to broader agreement.


“It really is something with the potential to establish a new basis for diplomacy in the region,” said Tamara Cofman Wittes, who was Mr. Obama’s deputy assistant secretary of state for the Middle East until earlier this year and now runs the Saban Center for Middle East Policy at the Brookings Institution. “It’s just potential, but it’s particularly impressive potential.”


The relationship between the two leaders has come a long way in just 10 weeks. Mr. Morsi’s election in June as the first Islamist president of Egypt set nerves in Washington on edge and raised questions about the future of Egypt’s three-decade-old peace treaty with Israel. Matters worsened in September when Egyptian radicals protesting an anti-Islam video stormed the United States Embassy in Cairo.


Peter Baker reported from Washington, and David D. Kirkpatrick from Cairo.



This article has been revised to reflect the following correction:

Correction: November 21, 2012

An earlier version of this article misstated the given name of the director of the Saban Center for Middle East Policy at the Brookings Institution. She is Tamara Cofman Wittes, not Teresa.



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Airlines’ On-Time Performance Rises


Rich Addicks for The New York Times


Delta Air Lines employees monitor ground traffic from a tower at Hartsfield-Jackson Atlanta International Airport.







ATLANTA — Next time you dawdle at the duty-free store or an airport bar, thinking you have a few more minutes until your flight is set to go, know this: the plane’s doors might have already closed.






Rich Addicks for The New York Times

A customer checking her bag. Delta installed bag check-in computers on boarding ramps.






There is a lot to complain about in air travel, particularly during the holiday season, with seats and overhead bins filled to capacity and the airlines charging fees for everything from a few inches of extra leg room to a bite to eat. But there is a nugget of good news. The number of flights leaving, and arriving, on time has improved significantly in recent years.


That is partly the result of the airlines flying fewer flights. But it is also because some airlines are focusing more on getting their planes out of the gate on schedule.


“There has been a lot of focus on improving performance across the industry,” said Peter McDonald, United’s chief operations officer. With carry-on space at a premium, he said passengers are also eager to board early. “There’s not a lot of hanging out at the bar until the last minute anymore.”


John Fechushak, Delta Air Lines’ director of operations in Atlanta, compared the daily task to “putting together a puzzle with different pieces every day.”


Here is a sampling of what Delta, for instance, looks at each day for each flight. How many minutes did it take for a plane to reach its gate after landing? Was the cabin door opened within three minutes? How soon were bags loaded in the hold? Did boarding start 35 minutes before takeoff? Were the cabin doors closed three minutes ahead of schedule?


So far this year, 83 percent of all flights took off within 15 minutes of schedule, the highest level since 2003, according to the Department of Transportation, which compiled figures through September. But that average belies a wide range of airline performances.


Hawaiian Airlines, helped by good weather for much of the year, topped the rankings, with 95 percent of flights leaving on time. At US Airways, 89 percent of departures were on time in that period, while Delta had 87 percent.


The biggest laggard this year has been United, which is struggling with its merger with Continental Airlines. The carrier has had three major computer problems this year, including two that crashed the airline’s passenger reservation system, stranding thousands of travelers and causing significant delays and cancellations. Its on-time departure rate, as a result, was 76 percent this year, the industry’s lowest.


American Airlines, which is going through bankruptcy proceedings and has been dealing with contentious labor relations, has also performed poorly. It delayed or canceled hundreds of flights in recent months after pilots called in sick or reported more mechanical problems. The airline also canceled scores of flight after seats were improperly bolted on some of its planes. As a result, nearly 40 percent of American’s flights were late in September.


Government statistics, however, do not provide the full picture: smaller carriers, like ExpressJet and SkyWest Airlines, which operate regional flights for Delta, United and US Airways, generally have lower on-time performance than their partners.


On-time statistics also vary widely by month, with the worst months in August and January, when summer storms, holiday travel or winter weather cause more disruptions. There are also single events that throw off the airlines: statistics, for instance, will be skewed for October by Hurricane Sandy, which shut down air travel through much of the East Coast and caused more than 19,000 flight cancellations.


Carriers have strong incentives to get planes out on time. Airlines now operate schedules that leave little wiggle room. Airplanes typically fly to several places every day, so any delayed flights, especially early in the day, can cascade through the system like falling dominoes and bedevil flight planners all day. Airlines often have to burn more fuel to try to make up for lost time, or make new arrangements for passengers who miss connections.


Airlines have long padded flight times to make up for congestion at airports or delays caused by air traffic controllers. Even so, passengers still expect their flight to take off and land at the time printed on their ticket.


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Ecstasy Treatment for Post-Traumatic Stress Shows Promise


Gretchen Ertl for The New York Times


ALTERNATIVE TREATMENT Rick Doblin of the Multidisciplinary Association for Psychedelic Studies, which is financing research into the drug Ecstasy.







Hundreds of Iraq and Afghanistan veterans with post-traumatic stress have recently contacted a husband-and-wife team who work in suburban South Carolina to seek help. Many are desperate, pleading for treatment and willing to travel to get it.




The soldiers have no interest in traditional talking cures or prescription drugs that have given them little relief. They are lining up to try an alternative: MDMA, better known as Ecstasy, a party drug that surfaced in the 1980s and ’90s that can induce pulses of euphoria and a radiating affection. Government regulators criminalized the drug in 1985, placing it on a list of prohibited substances that includes heroin and LSD. But in recent years, regulators have licensed a small number of labs to produce MDMA for research purposes.


“I feel survivor’s guilt, both for coming back from Iraq alive and now for having had a chance to do this therapy,” said Anthony, a 25-year-old living near Charleston, S.C., who asked that his last name not be used because of the stigma of taking the drug. “I’m a different person because of it.”


In a paper posted online Tuesday by the Journal of Psychopharmacology, Michael and Ann Mithoefer, the husband-and-wife team offering the treatment — which combines psychotherapy with a dose of MDMA — write that they found 15 of 21 people who recovered from severe post-traumatic stress in the therapy in the early 2000s reported minor to virtually no symptoms today. Many said they have received other kinds of therapy since then, but not with MDMA.


The Mithoefers — he is a psychiatrist and she is a nurse — collaborated on the study with researchers at the Medical University of South Carolina and the nonprofit Multidisciplinary Association for Psychedelic Studies.


The patients in this group included mostly rape victims, and experts familiar with the work cautioned that it was preliminary, based on small numbers, and its applicability to war trauma entirely unknown. A spokeswoman for the Department of Defense said the military was not involved in any research of MDMA.


But given the scarcity of good treatments for post-traumatic stress, “there is a tremendous need to study novel medications,” including MDMA, said Dr. John H. Krystal, chairman of psychiatry at the Yale School of Medicine.


The study is the first long-term test to suggest that psychiatrists’ tentative interest in hallucinogens and other recreational drugs — which have been taboo since the 1960s — could pay off. And news that the Mithoefers are beginning to test the drug in veterans is out, in the military press and on veterans’ blogs. “We’ve had more than 250 vets call us,” Dr. Mithoefer said. “There’s a long waiting list, we wish we could enroll them all.”


The couple, working with other researchers, will treat no more than 24 veterans with the therapy, following Food and Drug Administration protocols for testing an experimental drug; MDMA is not approved for any medical uses.


A handful of similar experiments using MDMA, LSD or marijuana are now in the works in Switzerland, Israel and Britain, as well as in this country. Both military and civilian researchers are watching closely. So far, the research has been largely supported by nonprofit groups.


“When it comes to the health and well-being of those who serve, we should leave our politics at the door and not be afraid to follow the data,” said Brig. Gen. Loree Sutton, a psychiatrist who recently retired from the Army. “There’s now an evidence base for this MDMA therapy and a plausible story about what may be going on in the brain to account for the effects.”


In interviews, two people who have had the therapy — one, Anthony, currently in the veterans study, and another who received the therapy independently — said that MDMA produced a mental sweet spot that allowed them to feel and talk about their trauma without being overwhelmed by it.


“It changed my perspective on the entire experience of working at ground zero,” said Patrick, a 46-year-old living in San Francisco, who worked long hours in the rubble after the Sept. 11, 2001, attacks searching in vain for survivors, as desperate family members of the victims looked on, pleading for information. “At times I had this beautiful, peaceful feeling down in the pit, that I had a purpose, that I was doing what I needed to be doing. And I began in therapy to identify with that,” rather than the guilt and sadness.


This article has been revised to reflect the following correction:

Correction: November 21, 2012

An article on Tuesday about using MDMA, or Ecstasy, in combination with psychotherapy to treat post-traumatic stress described incorrectly the office arrangement that a husband-and-wife team use to conduct therapy sessions using MDMA. The couple, Michael and Ann Mithoefer, hold the sessions in an office in a converted house; they do not conduct the sessions in their home office. And because of an editing error, an accompanying picture carried an incorrect credit. The photograph of the Mithoefers was taken by Hunter McRae, not by Gretchen Ertl.



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Ecstasy Treatment for Post-Traumatic Stress Shows Promise


Gretchen Ertl for The New York Times


ALTERNATIVE TREATMENT Rick Doblin of the Multidisciplinary Association for Psychedelic Studies, which is financing research into the drug Ecstasy.







Hundreds of Iraq and Afghanistan veterans with post-traumatic stress have recently contacted a husband-and-wife team who work in suburban South Carolina to seek help. Many are desperate, pleading for treatment and willing to travel to get it.




The soldiers have no interest in traditional talking cures or prescription drugs that have given them little relief. They are lining up to try an alternative: MDMA, better known as Ecstasy, a party drug that surfaced in the 1980s and ’90s that can induce pulses of euphoria and a radiating affection. Government regulators criminalized the drug in 1985, placing it on a list of prohibited substances that includes heroin and LSD. But in recent years, regulators have licensed a small number of labs to produce MDMA for research purposes.


“I feel survivor’s guilt, both for coming back from Iraq alive and now for having had a chance to do this therapy,” said Anthony, a 25-year-old living near Charleston, S.C., who asked that his last name not be used because of the stigma of taking the drug. “I’m a different person because of it.”


In a paper posted online Tuesday by the Journal of Psychopharmacology, Michael and Ann Mithoefer, the husband-and-wife team offering the treatment — which combines psychotherapy with a dose of MDMA — write that they found 15 of 21 people who recovered from severe post-traumatic stress in the therapy in the early 2000s reported minor to virtually no symptoms today. Many said they have received other kinds of therapy since then, but not with MDMA.


The Mithoefers — he is a psychiatrist and she is a nurse — collaborated on the study with researchers at the Medical University of South Carolina and the nonprofit Multidisciplinary Association for Psychedelic Studies.


The patients in this group included mostly rape victims, and experts familiar with the work cautioned that it was preliminary, based on small numbers, and its applicability to war trauma entirely unknown. A spokeswoman for the Department of Defense said the military was not involved in any research of MDMA.


But given the scarcity of good treatments for post-traumatic stress, “there is a tremendous need to study novel medications,” including MDMA, said Dr. John H. Krystal, chairman of psychiatry at the Yale School of Medicine.


The study is the first long-term test to suggest that psychiatrists’ tentative interest in hallucinogens and other recreational drugs — which have been taboo since the 1960s — could pay off. And news that the Mithoefers are beginning to test the drug in veterans is out, in the military press and on veterans’ blogs. “We’ve had more than 250 vets call us,” Dr. Mithoefer said. “There’s a long waiting list, we wish we could enroll them all.”


The couple, working with other researchers, will treat no more than 24 veterans with the therapy, following Food and Drug Administration protocols for testing an experimental drug; MDMA is not approved for any medical uses.


A handful of similar experiments using MDMA, LSD or marijuana are now in the works in Switzerland, Israel and Britain, as well as in this country. Both military and civilian researchers are watching closely. So far, the research has been largely supported by nonprofit groups.


“When it comes to the health and well-being of those who serve, we should leave our politics at the door and not be afraid to follow the data,” said Brig. Gen. Loree Sutton, a psychiatrist who recently retired from the Army. “There’s now an evidence base for this MDMA therapy and a plausible story about what may be going on in the brain to account for the effects.”


In interviews, two people who have had the therapy — one, Anthony, currently in the veterans study, and another who received the therapy independently — said that MDMA produced a mental sweet spot that allowed them to feel and talk about their trauma without being overwhelmed by it.


“It changed my perspective on the entire experience of working at ground zero,” said Patrick, a 46-year-old living in San Francisco, who worked long hours in the rubble after the Sept. 11, 2001, attacks searching in vain for survivors, as desperate family members of the victims looked on, pleading for information. “At times I had this beautiful, peaceful feeling down in the pit, that I had a purpose, that I was doing what I needed to be doing. And I began in therapy to identify with that,” rather than the guilt and sadness.


This article has been revised to reflect the following correction:

Correction: November 21, 2012

An article on Tuesday about using MDMA, or Ecstasy, in combination with psychotherapy to treat post-traumatic stress described incorrectly the office arrangement that a husband-and-wife team use to conduct therapy sessions using MDMA. The couple, Michael and Ann Mithoefer, hold the sessions in an office in a converted house; they do not conduct the sessions in their home office. And because of an editing error, an accompanying picture carried an incorrect credit. The photograph of the Mithoefers was taken by Hunter McRae, not by Gretchen Ertl.



Read More..