Uncle Sam Wants You to Nail Hackers

While business frets about scarce programmers, Uncle Sam is worried about a shortage of computer-security experts. So the White House wants to create a ''cyber corps''--a group of students who would get two years of tuition aid to study such things as intrusion detection in return for two years of government service.

Theprogram would enroll 300 undergraduate and graduate students in the fiscal year beginning October, 2000. One problem: Few colleges have undergraduate computer-security programs. The Clinton Administration wants schools to develop their own.

In addition, Washington is launching a federal information-technology security program to train current government workers about security. They learn, for example, to guard databases by changing passwords or how to add software to detect intruders. Washington hopes that teaching workers over the Internet, rather than in person, will cut the cost of training up to 10,000 federal employees a year. The overall tabfor new computer-security training: up to $25 million annually.

By Stan Crock

A Net Consultant Gives Itself Good Advice

Some internet entrepreneurs are so eager to go public that they don't bother waiting for revenue first. Not Farzad Dibachi, chief executive of hot startup Niku Corp. in Redwood City, Calif. The 18-month-old company released its consulting software in March and logged $4 million in sales in the company's most recent quarter. ''I won't go public until I have a $10 million quarter,'' says Dibachi, an ex-Oracle Corp. executive. ''Then you show it's real.''

Even without an IPO, Dibachi isn't timid about raising money. He has roped in $28 million in private investment and is planning to raise an additional $50 million.

The goal is to make www.iniku.com a must-go destination for computing consultants and other professionals, creating a marketplace for products and services. That will require an expensive brand-building campaign. ''If I can get 1 million professionals on the site, the game will be over,'' says Dibachi. It's classic Web-think: Attract a big audience, and revenues will follow.

By Steve Hamm

Online Marketing Is Clicking

Web advertising has been attracting more spending recently, and now it may even be getting some respect. Although long scorned as ineffective because most Web surfers don't click on most banners, online advertising scored well in a recent survey by market researchers at Greenfield Online Inc. in Westport, Conn.

Nearly two-thirds of consumer respondents said Web ads are more effective than at least one other major medium (table). But Web surfers are looking for incentives to read an ad before they will click to another page. Over 66% will look at an advertisement containing a free offer, 49% will read an ad that promises a discount, and 46% will scope out a contest. But bright colors and moving images--the ''rich media'' on which the industry has pinned so much hope--interest few civilians.

As Greenfield Online Vice-President Brin Bell puts it: ''Consumers are saying: 'If you give me something, I'll pay attention.'''

Broadcast advertising may still be the best way to promote a Web site, however: 90% of respondents visited a Web site after seeing its address on television.

TABLE: Do Web Ads Grab You More Than...

A significant percentage of Net surfers think online advertising is more effective than advertising through traditional media

DIRECT MAIL         48.6%
NEWSPAPERS          44.7
MAGAZINES           37.0
TV                  23.8


Survey of 2,600 consumers


DATA: GREENFIELD ONLINE INC.

Online Party Prep for the Time-Pressed

Even for sociable people, entertaining can be a drag. So when two executives from the popular Intuit.com personal-finance site began looking to start a business last year, their thoughts turned to the $10 billion market for party supplies. When greatEntertaining.com debuts next month, CEO Tanya Roberts and Chief Operating Officer Christy Ross will learn how much green there is in paper plates.

The idea is to make things simpler by putting party ideas and shopping in the same place. ''What we're realizing is that people aren't that creative,'' Roberts says. ''And when they are, they don't have the time.'' To get started, the pair got funding from venture firm Benchmark Capital.

Roberts and Ross aren't gunning for hostessing doyenne Martha Stewart, whose customers might consider preparing invitations by growing their own trees. Instead, they'll compete with stores selling packaged goods, such as cups and napkins. With Martha Stewart Living Omnimedia Inc. (page 108) winning raves for its profitability before its initial public offering, that's a good thing.

Bits & Bytes Contacts

ONLINE PARTY PREP FOR THE TIME-PRESSED
Contact: Barbara Krause at barbara@krause-taylor.com.

ONLINE MARKETING IS CLICKING
Contacts: Gail Gail Janensch (Tel. 203.429.0111 or 203.856.6185) or Janice Caston at Greenfield Online (Tel. 203.429.0147)

A NET CONSULTANT GIVES ITSELF GOOD ADVICE
Contact: Farzad Dibachi at (650) 369-9290