The majority of today's pure-play Internet companies will never make money and will not exist in three-to-five years. There will be a lot of consolidation and a lot of failure, and ultimately valuations will fall more in line with historical norms.

Our preliminary conclusion is that, although Microsoft is not out of the woods, it will be slightly more free to compete on its own terms than we expected it would.

Hopefully, later on down the line we can play them again and give them a run for their money.

This announcement will allow Java -- just as it did with cell phones and the Internet -- to play a pivotal role in enabling the coming wave of sensor-driven computing.

I could see Amazon and eBay merging. Amazon operates in a huge market, but it's got lower margin revenue. eBay has higher margin revenues, but the secondhand and small-business markets will always be limited relative to the size of the retail market. Combine the two, though, and that could be a very powerful entity.

Our estimate for fourth quarter product revenue is approximately $1 billion. To achieve our estimate, we believe Amazon has to book about $750 million in the eight week holiday season. Our back-of-the-envelope analysis of the Delight-O-Meter suggests it is off to a solid start.