"Our goal is to move corporate customers' data into our database...move [data] out of their servers and into ours," the CEO said (check out the full story here).

Sounds a little like... Google. Here's why: the search emperor recently launched the paid version of Google Apps, which debuted in free form last summer (read about it here). If companies decide to save money with Google's cheap or free on-demand software, and jettison, say, Microsoft Office, that means loads of corporate info could end up in "the cloud"--stored on the Internet rather than in company servers.

But if Salesforce can entice companies to do so with its latest offering--content management that makes it easy for workers to collaborate share information, be it audio, video, visual, or text--it could block Google.

Of course, both Salesforce and Google could get trumped by the umpteen-million startups that aim to help companies manage their data and use Internet-style technology to do it. Less-known news Tuesday came from On24, a webcasting and rich media marketing company: the launch of Insight24, an online network to aggregate and syndicate business and IT-related rich media content. "The Insight24 network provides business professionals with a single source for their rich media, which will help them with day-to-day business decisions," said ON24 CEO Sharat Sharan.

Yeah, them and everyone else.

In other words, Microsoft lowered expectations, then crowed about meeting them. (I assume. It doesn't seem as if Mr. Ballmer gave a new goal figure, but merely warned Vista wouldn't quite make his original projection.)

Still, Vista is far from failure. "We're encouraged by the strong debut. While it's very early in the product life cycle, we are setting a foundation for Windows Vista to become the fastest-adopted version of Windows ever," Kevin Kutz, director of Windows Client, said in an email forwarded to me.

 And in a recent story, Directions on Microsoft analyst Michael Cherry told me, “It really is time to get over the day-to-day death watch on Vista. ”

Let's wait for Vista's two-month anniversary to compare true figures.

Held at Microsoft’s Mountain View campus, I more than got my fill of software that helps non-techies create web sites, or that lets workers collaborate via the Internet. Lots of talk extolling “the cloud” was tempered, luckily, by skeptics wondering if all this would have any appeal beyond geekdom.

One panel judge, Ismael Ghalimi—who runs a business tools blog called IT Redux when not engaging in CEO duties at Intalio—thinks it will, thanks to tech-savvy workers in the trenches. “It’s users who like this technology who will generate bottom-up adoption of it,” he told me during lunch.

Joyent could be the first to spark this disruption, Mr. Ghalimi said. Joyent founder/CTO Jason Hoffman explained to me that Joyent’s collaboration software is different because it’s a lot simpler to implement—for example, the “sharing” function on email automatically gives your colleagues the same messages you get, unless you turn the function off.

But at least one company admitted it’s hard to “break through the noise” and nab potential customers who don’t care about the nuanced differences between various Office 2.0 software. Said SiteKreator founder/CEO Ivaylo Lenkov, “So far the best way [to promote itself] is through designers” who use SiteKreator to build sites for clients. He claims his company “makes creating a web site as easy as creating a Word document” thanks to premade site designs (don’t call them templates!).

Or, a startup can try being the customers’ friend. Online application creator Wufoo—based in Tampa, the “other Bay Area”—sends Christmas cards and other friendly items to clients, resulting in a big referral rate.

Of the other companies I caught (I hesitate to call these “highlights” as it was impossible to check out all 32 startups that presented in six net-hours), here’s what else impressed: Jive has the largest open-source real-time collaborator server in the world. Approver makes document-sharing software that’s so reliable and secure, attorneys at a law firm already use it. Slideaware helps customers better manage and repurpose business presentations. ThinkFree claims its online office suite is the most compatible with Microsoft.

Hewlett-Packard may add a Linux-run PC to its line of computers—perhaps indicating the desktop computer market is finally ready for open-source operating systems, an HP exec and a Linux expert said Thursday.

Demand for Linux PCs is rising in both developing and established markets, and this might provide incentive for HP to reintroduce a Linux-powered PC, said Doug Small, HP’s worldwide director of open-source and Linux marketing.

“We’ve seen core demand in India and China,” Mr. Small said, citing an increase in requests for Linux-related customized deals.

For example, he said one Chinese company recently signed a contract for 30,000 Linux laptops. Mr. Small wouldn’t disclose the PC maker that did the deal with the Chinese company. HP a few years ago tried introducing a Linux laptop and desktop but weak demand prompted the computer maker to discontinue those models.

HP isn’t the only major PC vendor considering selling factory-installed Linux systems. Dell has been thinking about it, too, ever since it received innumerable suggestions to do so on its new customer-feedback web site.

All this could mean Linux is ready for widespread adoption, at least in the business market. “With the Linux platform becoming more standardized, document formats becoming standardized, available media formats, and basic office capabilities becoming available as open-source and web-based services [like] Google Apps, the Linux desktop is good enough for a whole range of enterprise deployments,” said John Cherry, Linux initiative manager at the Linux Foundation.

The Foundation itself was based on the idea that Linux is now ready to compete with closed platforms. It was created after two Linux consortiums—the Open Source Development Labs and the Free Standards Group—merged together in January (see Open Source Groups Merge).

Mr. Small said even though HP took Linux-installed computers off the market last year, it still offers machines that are certified to run the system for customers who want to install it on their own. It also puts Linux on machines for certain custom jobs, like the Chinese enterprise contract. In addition, Linux is available on so-called thin client computers.

But Linux lovers shouldn’t get their hopes up too high. The open OS won’t be displacing Microsoft. “Linux has a long way to go if we are talking about replicating the entire Windows desktop ecosystem,” Mr. Cherry said.

Leading computer industry analyst Roger Kay, founder of Endpoint Technologies Associates, noted that Linux still has compatibility issues with other operating systems (see Dell Faces Linux Conundrum).

But compatibility issues could dissipate if major computer makers start offering Linux on a large-scale basis. “Support from vendors such as HP, Dell, and Lenovo would definitely alleviate consumer fear,” Mr. Cherry said, adding that a Linux-powered consumer PC would likely be less expensive and “far less vulnerable” to security risks.

The U.S. Federal Aviation Administration is considering alternatives to Microsoft software while other agencies are taking a wait-and-see approach, those interviewed said Wednesday.

The cost to upgrade to the Vista operating system may not be worthwhile. The FAA and the Department of Transportation have banned Microsoft upgrades for several months while studying the issue.

But observers cautioned that corporate customers such as government bureaus take time when deciding on software changes—and that it’s premature to sound the death knell on Microsoft’s federal business.

Still, the FAA will consider Google Apps and Linux as possible alternatives to Windows, which could be expensive.

“We’re looking at the business value for us,” said FAA spokesperson Tammy Jones. “To [support] Vista you have to have a certain amount of memory, faster processors, a new graphics card. Imagine how much all that would cost.”

Ms. Jones, however, stressed that the agency isn’t leaning heavily toward alternatives like Google and open source. “It’s more that there are some options that we’re looking at” to save money, she said.

Money isn’t the only concern, countered Microsoft federal client solutions specialist Patrick Svenburg. He said Microsoft offers more benefits than its rivals since “we’re always talking to customers about their concerns” and addressing them. Mr. Svenburg added that “continual innovation” keeps Microsoft products on par with competitors.

Moratorium Makes Sense

Meanwhile analysts agreed that Microsoft isn’t in danger of losing its lucrative United States government business, which the company says makes up 30 percent of all its North American enterprise sales.

“It really is time to get over the day-to-day death watch on Vista,” said Directions On Microsoft analyst Michael Cherry. He said a moratorium like the DOT’s makes sense for a large office that needs to be able to support all its computers.

“The investor base does not expect an immediate Vista uptick from the corporate sector, which includes the government,” said Pacific Growth Equities analyst Yum Kim. He said it takes an average of six months for any corporate customer to test out and implement upgrades.

While he agreed with other analysts, Robert Helm, another Directions On Microsoft analyst, admitted it makes sense for bureaus to check out Vista alternatives.

“Organizations should always be at least looking at the competition,” he said. Some offices might not need everyone to have full Office capabilities, and “a serious evaluation project can be a bargaining chip” to get a better deal from Microsoft, he said.

Still, the DOT and FAA don’t represent all government offices. “Other agencies are moving more aggressively, like the DOD [Department of Defense], to Vista because of Internet Protocol version 6,” said Cowen and Company analyst Walter Pritchard.

RingCube Technologies has raised $12 million in a second round of funding, the company said Tuesday.

Mountain View, California-based RingCube would like to change computing habits by making computers truly portable with its MojoPac software. MojoPac allows users to transfer all applications from their main computer to any portable storage device, be it a digital music player or a flash memory stick.

MojoPac is just one of many options for people who want access to their computers without actually taking them along—from souped-up UBS devices to on-demand software that’s stored on the Internet. The company said it already has tens of thousands of users since launching the software in September 2006.

“We’ve seen phenomenal growth month to month,”RingCube CEO and founder Shan Appajodu said. Forty percent of users are outside the United States—mostly in Brazil and China—which supports RingCube’s plan to target emerging markets where users don’t have their own personal PC, he said.

The investment came from first round investors New Enterprise Associates and MDV-Mohr Davidow Ventures.

Users can plug the device containing their applications into any host computer running Microsoft Windows.

MojoPac has many rivals. U3 makes USB flash devices that come, or can be loaded, with special versions of more than 100 applications (see A Desktop In Your Pocket). Meanwhile, an increasing number of devices promise lightweight computing on the go—from OQO’s mini-laptop to Apple’s upcoming iPhone (see RH 100 N.A. Computing, It’s An Apple Life). What’s more, on-demand software makes it possible for users to store all their files online and access it from any computer (see Free OS For All, Hosted Services To Top $19B).

But Mr. Appajodu said his company offers more than these competitors. U3, for example, only works with special versions of applications.

As far as on-demand software, he said, “People would be more comfortable putting it in their pocket and not on the Web. They can also play games that they can’t put on the Web, and also use their software while offline.”

Artificial intelligence startup Numenta said Monday it would license for free its computer memory system, giving scientists, developers, and engineers the chance to create applications that work like the human brain.

The Menlo Park, California-based company claims its technology is different from traditional AI software because it’s based on the human neocortex, which means can store and analyze data to make predictions or conclusions in the same manner as the human brain.

Numenta’s technology, first announced in 2005, is part of a greater movement toward more intelligent computers, called cognitive computing. Numenta co-founder Jeff Hawkins said last year that such computers would help humans better understand geology, markets, weather, physics, and genetics, among other subjects (see If It Only Had A Brain).

But traditional AI has stalled, critics say, because the technology gives computers a set list of situations and solutions—rather than allowing machines to “learn” the same way as a human. Releasing its software to other researchers is a logical step as it seems like Numenta wants to become a leader in the smart-computing space.

“If they can get a community working on it, that could help move it along,” said Neena Buck, emerging technologies analyst at Strategy Analytics.

It was not immediately clear whether any researchers or engineers had responded to Numenta’s licensing offer.

Several other companies have developed projects or products based on brain-based computing. Fair Isaac Corp, a business intelligence company based in Minneapolis, Minnesota, is working on a talking cat feeder that can hold conversations with pet owners. Atlanta-based Enkia, a startup that grew out of research developed at Georgia Tech, sells state-of-the-art artificial intelligence technology based on human cognition to analyze data. Enkia counts General Electric, Cox Enterprises, and the U.S. Air Force among its clients.

The nascent business intelligence software sector is poised for a round of rapid consolidation in the wake of Oracle’s $3.3 billion acquisition of Hyperion Solutions on Thursday, said industry insiders and analysts.

Oracle’s purchase (see Oracle Buys Hyperion For $3.3B) highlighted growing interest and investment in software that can help companies gather, store, access and analyze large amounts of data about how their businesses are performing. Trident Capital in mid-February invested $3.5 million in SeaTab Software (see SeaTab Grabs $3.5M), while Highfields Capital in January led a whopping $14.5 million third round for OCO.

“By the end of this year, the BI landscape will look very different,” said Cliff Longman, CTO of Kalido, which makes software that “cleans up” data before it’s processed by BI software. He theorized that many business intelligence software groups will be snapped up amid high demand.

The growing interest in BI software stems from several factors: market maturity, the increased number of companies in the space, and greater awareness of how the software can help companies manage their data.

Dan Vesset, research director of business analytics for researcher IDC, said business intelligence software has become one of the top priorities for company CIOs. IDC estimates the worldwide BI software market grew from $16.5 billion in 2005 to $18.5 billion in 2006. He added that the Hyperion sale could spark not just a buying spree among big companies, but also possible consolidation between small or specialized BI outfits.

Many companies are poised for a merger or acquisition, since those that were founded early this decade have gotten second or third rounds of funding and have had time to develop products. For example, Ampersand Ventures led an $8 million second round of funding for firstRain in 2003.

Ampersand general partner Marc Dulude said that firstRain is unique since it appeals to the financial service industry; its software gathers not just numbers but things like positive news reports about a company. Mr. Dulude was coy about sales talks regarding firstRain. “Has anyone put a number on the table? No,” he said, though he believes financial information providers like Bloomberg and Thomson Financial would be interested in purchasing the company.

Others potential targets include Cognos, which observers suggest would be a good fit for IBM. Mychelle Mollot, vice president of market strategy for Cognos, declined to comment on the possibility but noted that that companies that use numerous data systems would want something not tied to a particular system.