By November, when it started selling Windows Phone 7, Microsoft's share of the booming smartphone market had shrunk to 2.8 percent. The company is not hurting for cash, but to keep up its current growth rate it badly needs a hit in the mobile phone market. Global mobile phone sales in the third quarter alone totaled 417 million, compared to a forecast 352 million for PC sales for the entire year, according to Gartner. The rapidly growing smartphone category accounts for about 20 percent of all mobile phone sales and in emerging markets more than 90 percent of 18- to 27-year-olds use mobile phones as their primary access to the Internet. WP7 differentiates itself from rival OS by categorizing applications, services and Web content under hubs, and Office integration will be important for professionals. But with sales of iPhones and Android devices booming, and RIM's BlackBerry a favorite for corporate users, Microsoft has an uphill battle.

Verizon launches LTE network -- 4G or not, it's next generation

Verizon Wireless's launch this month of its high-speed LTE (Long Term Evolution) network in 38 U.S. cities capped a year in which long-planned, next-generation wireless networks around the world became a reality. Verizon laid claim to offering the first significant nationwide LTE network but was beaten to market by regional provider MetroPCS in the U.S., where it also battles Wi-Max and HSPA+ networks. Globally, in the last month alone Vodafone in Germany, Telenor and Tele2 in Sweden and NTT DoCoMo in Japan announced pricing for LTE services. Meanwhile, the ITU declared that the only technologies that qualify as 4G are an upcoming version of LTE called LTE-Advanced, and the next generation of WiMax known as IEEE 802.16m or WirelessMAN-Advanced. But both LTE and WiMax, unlike current cellular networks, are end-to-end IP networks. LTE, Wi-Max and HSPA networks advertise download speeds starting at 3M bps (bits per second) to 5M bps, further fueling the global mobile revolution.

HP ousts Hurd as boardroom soap opera continues

HP shocked the IT world at the beginning of August by announcing that CEO and Chairman Mark Hurd had resigned, following an investigation into claims that he sexually harassed a former contractor to the company. Hurd did not break HP's sexual harassment policy but he did violate standards of conduct in his expense report filings (reportedly for charges incurred while working with the female contractor in question). Hurd took the helm at HP after the board fired Carly Fiorina in 2005 for failing to capitalize on her acquisition of Compaq. Hurd led HP to edge out IBM as the world' largest IT company. Hurd had been delivering great results but apparently his slash-and burn methods of curbing costs made enemies. To replace Hurd, HP named Leo Apotheker, who had been forced out SAP in February after the ERP maker stumbled during its move to cloud technology. But supporters say Apotheker is a good choice to lead HP as it beefs up its software offerings in order to provide the one-stop-shop sort of services necessary to stay on top of competitors like IBM, Oracle and Dell.