Botnet Ringleader In New Zealand, Busted

The swoop is the FBI's second phase of "Operation Bot Roast" -- the same operation which resulted in four felony charges against 26-year-old Los Angeles security consultant, John Schiefer.

The New Zealand suspect, who goes by the name of "AKILL", came under fire after an information sharing exercise between the New Zealand Police, the US Secret Service and the FBI. He has been interviewed by New Zealand police and investigators have seized computers from his home.

FBI director Robert S Mueller III, said botnets are the "weapon of choice" for cybercriminals.

"They seek to conceal their criminal activities by using third party computers as vehicles for their crimes. In Bot Roast II, we see the diverse and complex nature of crimes that are being committed through the use of botnets," he said.

Since "Operation Bot Roast" was announced last June, eight individuals have been indicted, pled guilty, or been sentenced for crimes related to botnet activity, according to the FBI. Law enforcement agencies have also served 13 search warrants in the US and overseas.

FBI Assistant Director James E Finch, Cyber Division, warns users to protect their systems.
"Practicing strong computer security habits such as updating antivirus software, installing a firewall, using strong passwords, and employing good e-mail and Web security practices are as basic as putting locks on your doors and windows.

"Without employing these safeguards, botnets, along with criminal and possibly terrorist activities, will continue to flourish," he said.

Except for Alexander Dmitriyevich Paskalov, 38, all individuals identified by the FBI in "Operation Bot Roast II" are male, US citizens, under 30 years old.

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Micron Technology Releases 64GB Solid-State Hard Drives In 2008

Michael Kanellos

Micron Technology, the Boise, Idaho-based maker of BDRAM and flash memory, this week unveiled plans to come out with solid-state drives. The drives function like regular hard drives. But instead of storing data on spinning disks, solid-state drives store it on NAND memory chips -- the kind found in cameras and MP3 players.

Micron will start mass-producing solid-state drives in the first quarter of 2008. The first drives will hold either 32GB or 64GB of memory. While that's less than half the capacity of the average notebook drive today, it's actually more storage than most business users need, said Dean Klein, vice president of memory system development at Micron. Plus, solid-state notebooks can come out of deep sleep or launch applications far more rapidly.

"Sixty GB to 80GB is the sweet spot for the notebook market," he said.

Micron didn't talk pricing, but the drives will likely cost a few hundred dollars, a stumbling block. For example, swapping out a 160GB standard hard drive for a 64GB solid-state drive (from Samsung) on a Dell XPS 1330 notebook costs an additional US$950. Considering that the notebook with the 160GB drive already costs US$1,599, the solid-state drives aren't exactly economical.

Nonetheless, the magic of Moore's Law and the ability of memory makers to take it on the chin are going to make these drives more affordable. The first thing that will happen is that toward the end of 2008, solid-state drive makers will start to incorporate multilevel cell flash chips in the drives, Klein said. Manufacturers currently use single-level cell flash memory.

Multilevel cell chips hold two (and soon four) bits of data per cell. The chips aren't as reliable as single-level cell memory, but the error rates are small enough to make these types of drives more than adequate for the notebook market, he added.

In addition, multilevel cell chips will enable drive makers to increase the capacity of their drives, driving down the price. At equal capacities, multilevel cell chips could cut the price of making a drive by roughly 40 percent, estimated Frankie Roohparvar, vice president of NAND development at Micron.

Meanwhile, the world is swimming in NAND flash, leading to drastic price declines. NAND prices are set to drop 57 percent this year and 52 percent next year, said Joseph Unsworth, an analyst at Gartner.

Put those two factors together, and it could be possible to come out with a 64GB solid-state drive for close to US$300 toward the end of 2008, Unsworth speculated. That's still high. He estimates that only eight million solid-state drives will get shipped in all of '08.

But after that, the industry should begin to be able to show the benefits of these kinds of drives, the Micron executives predict. Even if price declines begin to slow, 64GB drives will likely move toward the US$200 range by late 2009 and then drop to sub-US$100 about 18 months after that. Hard-drive makers will continue to increase the density of their products at the same time, of course, but competition between the two technologies will become tighter.

It happened in MP3 players, after all. Most upscale players came with 1.8-inch drives. The industry, however, at one point abruptly switched to flash.

Unsworth said the flash makers are going to have to tout the supposed benefits of having a flash drive with less capacity than a spinning disk (better battery life, can withstand a drop from a table better, you may not need all that storage, etc.).

He added that notebook makers will have to cooperate by making smaller laptops that showcase the features of flash. Flash takes up less space and, because it doesn't radiate as much heat, you can eliminate a fan. Currently, the notebooks that contain flash are basically the same size as the hard-drive models.

"With MP3 players, it was easy. You just turn it sideways and quote the battery life," Unsworth said.

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QuickTime Vulnerability Experienced In Mac OS X Too

Gregg Keizer

The QuickTime vulnerability disclosed in the Windows version of QuickTime last week also affects Mac OS X, Symantec said yesterday.

According to additional research by Symantec's security response team, the Real-Time Streaming Protocol (RTSP) bug in QuickTime is also present in the Mac versions of Apple's media player. "We tested it, and the [proof-of-concept] exploit does cause a denial of service," said Marc Fossi, manager of the Symantec team, explaining that the Windows-specific attack code fails to give a hacker access to a Macintosh but instead causes QuickTime to crash.

However, Fossi cautioned Mac users against believing that they are in the clear. "QuickTime vulnerabilities have tended to affect both Windows and Mac OS X, and it's always possible that a denial of service could lead to remote code execution," he warned.

Fossi also said that on Windows, it now appears that Microsoft's Internet Explorer Versions 6 and 7, as well as the beta of Apple's Safari browser, will offer some additional protection against attacks that are based on duping users into visiting malicious or compromised sites hosting rigged streaming content.

"The buffer overflow protection built into IE and in Safari prevents the exploit shell code from executing in the [QuickTime] plug-in," said Fossi. To successfully attack a user via IE or Safari, the current exploit example would have to be refined, Symantec added in a posting to its security blog Monday.

Firefox, however, provides no such protection, Fossi noted, because it passes off the streaming content request directly to the stand-alone QuickTime Player, ceding control to the Apple program.

Any attack on a Windows XP or Vista PC that circumvents the browser -- by delivering a rogue attachment that when opened automatically launches the QuickTime Player -- executes and compromises the computer, Symantec's research showed.

Fossi also repeated a warning given over the weekend that in-the-wild use of the exploit will probably come sooner rather than later. "When there is an exploit that's fairly complete, like this one, attacks could be soon in coming," he said. "It doesn't take someone very long to develop a malicious exploit when they start with something like this."

He recommended that network administrators block RTSP traffic -- the protocol's default outbound port is TCP 554 -- and that users steer clear of links to untrusted sites and be wary of file attachments.

Even though Apple has issued six QuickTime security updates so far this year and patched a total of 31 vulnerabilities, Fossi declined to call Apple's player less secure than those of rivals, such as Microsoft's Windows Media Player.

"Windows Media Player has had its share of vulnerabilities," he said. "A lot of people have media players installed on their computers, and they make pretty nice targets. Multimedia in general is a nice target for attackers. Most people know not to open a Word doc or an executable file, but with multimedia, everyone has a natural curiosity to see what their buddy just sent them.

"Then, bang."

Apple did not respond to questions about the QuickTime vulnerability and its plans for patching the program.

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Electricity From Renewable Energy, Google New Goal

Google said Tuesday it will invest in developing ways to create electricity from renewable energy sources that will be cheaper than the electricity produced from coal.

Google Co-founder Larry Page said in 2008, the company plans to spend tens of millions of dollars on research and development and other related investments in renewable energy. Currently, coal supplies 40 percent of the world's electricity, according to Google.

"We have gained expertise in designing and building large-scale, energy-intensive facilities by building efficient data centers," said Page in the statement. "We want to apply the same creativity and innovation to the challenge of generating renewable electricity at globally significant scale, and produce it cheaper than from coal."

Page said Google's goal is to produce one gigawatt of renewable energy capacity that is cheaper than coal.

"We are optimistic this can be done in years, not decades," he said, adding that one gigawatt can power a city the size of San Francisco.

Page said that if Google meets that goal and large-scale renewable deployments are cheaper than coal, then the world could meet a large part of its electricity needs from renewable energy sources and significantly reduce carbon emissions. "We expect this would be a good business for us as well," he said.

Google.org, Google's philanthropic arm, will invest in the initiative, known as RE.

Google.org is now working with two companies on renewable energy technologies: eSolar, a California-based company specializing in solar thermal power that replaces the fuel in a traditional power plant with heat produced from solar energy; and Makani Power, a California-based company developing technologies to harness the wind for energy.

Google said Tuesday's announcement is just the latest step in its commitment to a clean and green energy future.

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Earning The CISSP : What It Takes And What It Is Worth

Greg Schaffer

Recently, I became an International Information Systems Security Certification Consortium (ISC2) Certified Information Systems Security Professional (CISSP). The pursuit was difficult, but that was to be expected, as the certification is one of the most sought-after information security credentials. Like many certifications, it can add significant bargaining weight when changing positions or jockeying for a raise.

Certifications don't necessarily make or break one's career, but can contribute to one's overall package. Whether you're satisfied in a position or looking to upgrade, it's in your best interest to stay as knowledgeable and marketable as possible. Understanding that certifications may not be a panacea but certainly have value is the first step in determining which certifications (if any) are worth pursuing based on your career goals.

The value of certifications

There has been much debate over the validity and usefulness of certifications, but one thing is clear: knowledge without the ability to apply it is functionally useless. That's one reason why some certifications require significant real-world experience as part of the certification process. IT recruiters are keenly aware of this.

"You may be a whiz at taking certification exams," says John Estes, vice president at IT staffing agency Robert Half Technology, "but if you don't have the benefit of troubleshooting [experience] in a business environment, you won't last long." Justin Keller, an infrastructure recruiter at TEKsystems Inc., agrees. "Certifications are something that will set apart qualified candidates from the rest of the field but they cannot be expected to replace real life experience," Keller says.

However, there has to be some value to a certification besides a fancy certificate for display on the wall. Overall, it's not unreasonable to expect a relevant certification to command roughly a 10% average increase in salary over those performing the same duties without the credentials, according to Brian Hunter, an executive and technical recruiter at Talent Scouts Inc. He suggests that people interested in pursuing a particular certification do a cost-benefit analysis to determine the certifications' return on investment.

Without a doubt, pursuing certifications requires tenacity and a willingness to put in long hours of preparation, not to mention the monetary costs, particularly if a "boot camp"-type preparation course is used. As Keller points out, "the financial and time commitments that are required to get many of these certifications are significant."

Basically, certifications by definition should certify that a professional possesses the qualities necessary to accomplish the duties of a particular position. In information security, that means having a very broad experience, knowledge and skills base.

My pursuit to become a CISSP

Information security is one of the fastest growing areas in IT today. Keller notes that "specialization in this area is going to be a solid differentiator in a market that is already very competitive." Certainly in the information security field, having the paperwork to back up the knowledge can be quite valuable. As my information security duties have increased dramatically over the past several years to the point where the majority of my professional activities are related to information security, I felt it was time to achieve that differentiator.

While there are other information security credentials available such as the Certified Information Security Auditor (CISA) from the Information Systems Audit and Control Association (ISACA), I chose to go after the CISSP certification because of its reputation and vendor-neutrality and because my knowledge and experience matched the CISSP requirements well. In addition, the managerial components of the CISSP credential fit with my aspirations to become a chief information security officer (CISO).

To become a CISSP, a minimum of five years' work experience in two of 10 knowledge areas, referred to as domains, is necessary. We're not talking just technical areas here, as the domains include not only nuts-and-bolts topics such as networking and cryptography but managerial and planning tools such as business continuity and disaster recovery. This is because information security is at the core a business process or, more exactly, a method to ensure that the business continuity is unimpeded.

"It seems like almost every week, you hear about a Fortune 500 company or government department having a breach of sensitive information," explains Louie DiNicola, who expects to complete his undergraduate degree in computer information systems next spring and already has a position lined up working in IT assurance. "I want to be able to help companies avoid that and maximize their potential by helping them identify problems in IT policy and implementation."

DiNicola has an edge outside of the certifications with his college degree. Companies will often ignore a potential candidate, regardless of experience and qualifications, if he hasn't earned a degree. "It does not matter if the person can walk on water," according to Hunter. "If they do not have a degree, they won't be considered" for some positions.

DiNicola knows that a degree and certifications, coupled with experience, make for a powerful mix. "I realize that as an entry-level graduate, the certification might be better suited as a long-term goal," he explains. DiNicola has already begun plans to pursue the CISA credential and the CISSP certification after that.

The CISSP credential goes far beyond measuring one's book knowledge. First, the candidate must be endorsed by an ISC2-certified professional confirming that the candidate meets the experience requirements. Also, the candidate must pledge to adhere to a code of ethics. Finally, to maintain certification, the CISSP must constantly engage in security activities, such as ongoing education and participating in security speaking opportunities.

But it all starts with the exam, and there are many ways to prepare for it. For me, self study was the best way to go. You have to be disciplined and self-motivated to forego structured courses, but self study can provide more flexibility while saving costs. Note that bypassing the class route doesn't mean that you have to go it alone. I found valuable resources online from CISSP forums such as one at CCCure.org and free online workshops such as those offered by the University of Fairfax.

Passing the CISSP and other certification exam tips

The following tips helped me pass the CISSP exam, the most difficult certification exam I have ever taken. As learning methods vary, so should your approach to preparing for any certification exam.

My first action was to register for the exam to allow for two months of preparation. While this may seem obvious, registering for the exam a certain period in advance helps to focus on the goal. Without a deadline, it can be difficult to achieve that goal, since the propensity to procrastinate is great.

My next step was to purchase a review book with practice questions and exams. I opted to purchase ISC2's CISSP review book, which came with a CD of practice exams. Of course, there are other study guides with practice exams available. The point is to have a good resource to prepare with. Multiple books can help especially in locking down difficult concepts by approaching them from different angles.

You should take a practice exam before beginning to study because it can point out subject-matter strengths and weaknesses. Predictably, I was strongest in the two domains for which I met the required experience and quite weak in some others. This helped me prioritize my studying.

Plan to study until one week before the exam and spend the last week reviewing material at a leisurely pace. A light review the night before the exam is fine, but do not cram. If the test is given in a location that requires significant travel, plan on arriving the night before, particularly for an early morning exam. I relaxed the night prior to the exam, because I knew I would need all my faculties the next day.

The CISSP test consists of 250 multiple-choice questions that must be completed in six hours. That equates to less than one and a half minutes per question. There are various strategies for attacking such exams; mine was to be well rested and answer every question in the exam in four hours, then review the rest of the time. If time becomes a factor toward the end of the exam, answers will be rushed, so pacing is important.

After I left the exam, confident that I had a 50-50 chance of passing, I began crafting my retest strategy. Since I had just spent so much time over two months preparing for this exam, I planned to register to retake the exam the moment I found out I failed, because I didn't want to lose the freshness of the knowledge. Fortunately, I didn't have to activate that plan, but I was ready to.

Summary

While these tips are based on my pursuit of becoming a CISSP, they have applicability to other certifications as well.

* Match certifications with your goals and skills.
* Study, study, study. Whether that means books, classes or both, studying can't be overemphasized.
* Cramming rarely works. Rather, relax the night before, and get a good night's sleep.
* Certifications should be part of an overall success strategy, not the singular focus.
* The further up the ladder, the more important degrees become. If CISO is a goal, look into pursuing an advanced degree.
* Realize it's just an exam. Everyone has bad days, and failing is not the end of the world.
* If you do fail, plan to retest sooner than later. Don't give up the pursuit.

Finally, don't look at obtaining certifications as the primary goal but as part of an overall strategy for achieving your career aspirations. "No single accreditation will guarantee career success," summarizes Robert Half Technology's Estes. "But a mix of relevant, broad-based certifications can help support an IT professional who has experience in the field as well as a strong set of appropriate skills."

Greg Schaffer is a freelance writer based in Tennessee. He has over 15 years of experience in networking, primarily in higher education. He can be reached at newtnoise@comcast.net.

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Microsoft Set To Check Windows Genuine Advantage's Anormalies

Three months after a major failure of Microsoft's anticounterfeit system fingered legitimate Windows XP and Vista users as pirates, a senior project manager has spelled out the steps his team has taken to prevent a repeat.

Alex Kochis, the senior project manager for Windows Genuine Advantage (WGA), used a company blog to outline new processes that have been put in place, including drills that test the WGA group's response to an outage like the one in late August.

"We've revamped the monitoring that is used to track what's happening within our server infrastructure so that we can identify potential problems faster, ideally before any customer gets impacted," Kochis said. "[And] since August, we have conducted more than a dozen 'fire-drills' designed to improve our ability to respond to issues affecting customers or that could impact the quality of the service."

Those drills, Kochis said, have ranged from pre-announced simulations to surprise alerts that test a specific scenario. "The team is now better prepared overall to take the right action and take it quickly," he promised.

In late August, servers operating the WGA validation system went dark for about 19 hours. Customers who tried to validate their copy of Windows -- a Microsoft requirement for both XP and Vista -- during the blackout were pegged as pirates; Vista owners found parts of the operating system had been disabled, including its Aero graphical interface.

Several days after the weekend meltdown, Microsoft blamed preproduction code for the snafu and said that a rollback to earlier versions of the server software didn't fix the problem immediately, as expected.

Microsoft, however, downplayed the incident, claiming that fewer than 12,000 PCs had been affected. The company's support forums, however, hinted that the problem was much more widespread: one message thread had collected over 450 messages within two days and had been viewed by 45,000 people.

One analyst gave Kochis' status report a mixed grade.

"I was looking for two things from Microsoft, and the first was that they would acknowledge that there was a failure," said Michael Cherry, an analyst at Kirkland, Wash.-based Directions on Microsoft. "If they couldn't do that, it would show a real lack of insight into the severity of the problem. But they called it an 'outage' [here], which I don't think they had actually admitted before."

Cherry was more than on the mark. While Kochis called the incident a "temporary service outage" in his newest post, three months ago, he denied that the word applied. "It's important to clarify that this event was not an outage," he said on August 29, five days after the servers went down.

"Second," said Cherry, "I wondered if Microsoft would acknowledge that failures are going to happen, that something's going to go wrong no matter how many drills they have. And when that happens, what would they do? But I don't see anything like that here."

Kochis said the WGA team has also changed the way it updates the validation service's servers, beefed up free WGA phone support to round-the-clock coverage and improved the speed of delivery of "get-legal" kits to users who discover they're running counterfeit software, but he made no mention of any modifications to the antipiracy program itself, how it's implemented or how users are handled when it determines they're using fake copies of Windows.

"They should make it so that any impact [of an outage] is on Microsoft and not on the customer," Cherry said.

Back in August, Kochis claimed that Microsoft's policy was to do just that -- err on the side of the customer -- but he contended that the outage had been an anomaly. "Our system is designed to default to genuine if the service is disrupted or unavailable," Kochis said then. "If our servers are down, your system will pass validation every time. [But] this event was not the same as an outage, because in this case the trusted source of validations itself responded incorrectly."

That's not good enough, according to Cherry. "If users can't validate, for whatever reason, Microsoft should leave them in their current state, but not invalidate them, or validate them, at least until the next check," he said.

"You have to take the utmost care before you deny something to someone that they have purchased in good faith," he concluded.

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'Gdrive,' Google's Online Storage And Backup Service Out Soon

Google may release an online storage and backup service in the coming months, adding to its suite of hosted services, which already includes a variety of communication and collaboration applications, The Wall Street Journal reported Tuesday.

Rumors that Google is developing such a service, informally known as the "Gdrive", have been circulating for more than two years. It's not clear why it has taken Google so long to deliver Gdrive, considering its concept is far from new and online storage and backup services are available already from a variety of vendors.

In fact, according to the Journal, the company isn't still completely sure it will bring this service to market, and plans for it could be shelved.

As existing services do, Google's would let people store files on Google servers so that they could make backup copies of files on hard drives and access and share them with others from any computer via the Internet, the Journal reported.

The service would provide an undetermined amount of storage for free, with additional space available for a fee, the Journal reported, quoting anonymous sources familiar with the plans.

Google didn't immediately respond to a request for comment from IDG News Service. A Google spokeswoman contacted by the Journal declined to comment about any specific online storage plans.

Google hopes to differentiate the service from existing competing ones by making it easier to use, the Journal reported.

Google already offers hosted storage for a variety of its Web-based applications, but this service would act as a sort of umbrella storage for multiple Google applications, allowing people to do keyword searches on their files, according to the Journal.

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Cisco Gives Oracle 11g A Boost

Stephen Lawson
Cisco did its part for Oracle users as the OpenWorld conference opened Monday, announcing a protocol it developed with the software company for running Oracle databases over larger server clusters.

The two vendors developed the RDS (Reliable Datagram Sockets) protocol and will make it part of an industry-developed open-source software distribution called Open Fabrics Enterprise Distribution, said Pramod Srivatsa, a product line manager for Cisco server fabric switches. It is intended for Cisco switches using Infiniband high-speed data-center technology.

Growing data centers and demands for processing have driven the development of new forms of connectivity, such as Infiniband and 10-Gigabit Ethernet, between servers in data centers. But pure networking speed -- up to 20G bps (bits per second) in the case of Infiniband -- isn't all that's needed to make data centers run faster.

Enterprises that want to set up a very large deployment of the Oracle 11g database software once had to do it on a single large server, Srivatsa said. Oracle already offers RAC (Real Application Clusters) 11g software for distributing that deployment over multiple, smaller Intel-based servers running Linux. But that only works up to a cluster of about four servers, and RDS makes it more scalable, he said. RDS has been tested successfully with as many as 16 servers and is designed to work for clusters of as many as 64 using Infiniband, according to Srivatsa.

Infiniband is well-suited to Oracle database software because it has to quickly exchange many messages of varying sizes, Srivatsa said. Mellanox, which supplies some of Cisco's chips for Infiniband switches, helped develop RDS. In the future, customers will probably be able to use RDS with 10-Gigabit Ethernet too, Srivatsa said.

RDS was designed for clusters of servers in one data center, which could include blade as well as rack servers, he said. Customers of both Oracle and Cisco can request the software from the companies now and start testing it. Cisco will start providing RDS for commercial use in its Infiniband servers after it is certified by Oracle, probably next month, Srivatsa said.

On Tuesday, at the SC07 supercomputing conference in Reno, Nevada, Cisco introduced the SFS (Server Fabric Switch) 3504, designed to let enterprises connect blade servers running Oracle database software with traditional Fibre Channel storage-area networks (SANs). The switch connects to a blade or rack server using Infiniband and serves as a gateway to both an Ethernet LAN and a Fibre Channel SAN, Srivatsa said. In the case of blade servers, it helps IT departments do more with systems that typically have just one type of external connectivity, he said.

The SFS 3504 can be ordered starting later this month and is set to ship in December. The average starting list price, depending on configurations, will be US$150 per port.

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Microsoft Windows XP & 2003 Server Gets New Updates

Robert McMillan
Microsoft has released its November security updates, fixing a critical Windows bug that has been exploited by online criminals.

Microsoft released just two security updates this month, but security experts say that IT staff will want to install both of them as quickly as possible. The MS07-061 update is particularly critical because the flaw it repairs has been seen in Web-based attack code, said Amol Sarwate, manager of Qualys's vulnerability research lab. "This was a zero day [flaw] that was being used in the wild by hackers," he said.

The flaw has to do with the way Windows passes data between applications, using a technology called the URI (Uniform Resource Identifier) protocol handler. This is the part of Windows that allows users to launch applications -- an e-mail or instant messaging client, for example -- by clicking on a Web link. Because Windows does not perform all of the security checks necessary, hackers found ways to sneak unauthorized commands into these Web links and the flaw could be exploited to install unauthorized software on a victim's PC.

This type of flaw lies in both Windows and the programs being launched by the Web link and Microsoft had initially said that it was up to third-party software developers to fix the issue. It later reversed this position and decided to fix the flaw in Windows as well. These URI protocol handler problems have turned up in Adobe, Firefox and Outlook Express.

Microsoft was forced to revise its position on the URI bugs after researchers discovered that they were far more problematic than first thought, said Nathan McFeters, a security researcher with Ernst & Young, who has been studying this problem. "I think that early on it wasn't clear that this was an issue," he said via e-mail. "There's really a handful of issues with this URI use and abuse stuff."

Microsoft's patch for this problem is rated critical for Windows XP and Windows Server 2003 users, but the bug does not affect Windows 2000 or Vista, Microsoft said.

The second vulnerability, rated "important" by Microsoft, has to do with Windows DNS (Domain Name System) servers, which are used to exchange information about the location of computers on the Internet. Attackers could exploit this flaw to redirect victims to malicious Web sites without their knowledge, something known as a "man in the middle" attack. "All system administrators should look very closely at this vulnerability," Sarwate said. "I would have personally rated it as critical," he said.

Security experts were surprised that Microsoft did not include a patch for a known vulnerability in some Macrovision antipiracy software that has been shipping with Windows for the last few years. Microsoft has said that it plans to patch the problem and that it is aware of "limited attacks" that exploit this vulnerability to get elevated privileges on a victim's machine.

The bug lies in the secdrv.sys driver built by Macrovision that ships with Windows XP, Server 2003 and Vista, but Vista is not vulnerable to the problem, according to Microsoft.

Macrovision has also published a patch for this problem.

Its a "bit worrisome" that Microsoft hasn't pushed out a patch for the bug, given that Macrovision has already made its fix available, said Andrew Storms, director of security operations with nCircle Network Security. "However, [it's] understandable that Microsoft would want to run the patch through its QA [quality assurance] and software release cycles," he added. "Given the choice between the URI bug and the Macrovision fix, enterprise security operations teams would much rather have the URI fix."

Users of Microsoft's WSUS (Windows Server Update Services) update system had been wondering if they were going to get Tuesday's patches, after a Microsoft programming error knocked WSUS administration consoles offline on Sunday and Monday. Microsoft had misnamed an entry in WSUS's database causing the consoles to crash.

The problem was fixed on Monday, said Bobbie Harder, a Microsoft senior program manager, in a blog posting. But WSUS servers that synchronized with Microsoft between 5 pm.Sunday and 11 am Monday Pacific Time will need to resynchronize to avoid the problem.

Though she had heard of one user who had to manually updated his WSUS server, Tuesday's updates went off without a hitch, said Susan Bradley, a WSUS user who is chief technology officer with Tamiyasu, Smith, Horn and Braun, Accountancy.

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Microsoft Releases Three Updates For Vista

John Fontana
Microsoft releases three non-security updates to Windows Vista that relate to battery life, sleep/hibernation issues, and glitches in the Media Center version.

The updates are part of an ongoing release of fixes for Vista that will eventually be incorporated into Service Pack 1, which is set to ship in the first quarter next year.

A public beta of the service pack is due by the end of the year.

Microsoft has been using occasional updates to tune Vista since it shipped a year ago. The company has been promoting the on-going updates to Vista as an alternative to one large service pack.

In October, the company released speed and reliability updates for Vista. In August it issued a pair of updates to address reliability and performance in the operating system.

The first update for this latest release addresses system compatibility, reliability and stability, including the extension of battery life for mobile devices and the stability of Windows PowerShell and wireless network services.

The update also improves the stability of portable and desktop computers that use an uninterruptible power supply (UPS), and the reliability of Vista when you open the menu of a startup application. The upgrade also shortens the startup time of Windows Vista by using a better timing structure, the recovery time after Windows Vista experiences a period of inactivity, and the recovery time when users try to exit the Photos screen saver.

The second update addresses a number of USB core components, including problems trying to recover or enter sleep or hibernation mode. The upgrade is a collection of 21 previously released fixes for USB issues. The second upgrade also addresses problems with USB devices that may no longer work correctly after Vista resumes from sleep or hibernation, problems that may occur with USB-connected microphones, the enabling and re-enabling USB composite devices, and problems with the hardware removal and "eject" command when used with an Apple iPod.

The third update focuses on Windows Media Center and issues with its extensibility platform. It also fixes issues associated with interaction between Media Center and Xbox360, when the gaming console is used as a Media Center Extender.

Microsoft plans to make the updates available via Windows Update beginning November 13, which is the same date for the release of the company's monthly security patch updates.

The three updates will also be included with Vista Service Pack 1, which also will include an update to the Windows kernel to align it with the kernel in Windows Server 2008.

The service pack is expected to ship at the same time as the server, which is slated for the first quarter of 2008. Microsoft officials hope to ship the server on or before the February 27, 2008, launch event in Los Angeles.

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Microsoft Unveils Its Stand-Alone Virtualization Server

John Fontana
Microsoft Monday tweaked its virtualization strategy by unveiling a stand-alone virtualization server that won't require users to run the Windows Server 2008 operating system.

The announcement came at the company's annual TechEd IT Forum conference in Barcelona, Spain, where Microsoft also outlined pricing, packaging and licensing for Windows Server 2008 and the availability of management tools that address needs of virtualized environments.

Microsoft's virtualization announcement, however, is just a placeholder since the technology likely won't be available until August 2008. Microsoft's Hyper-V technology, formerly code-named Viridian and Windows Server Virtualization, will ship no more than 180 days following the release of Windows Server 2008, which is now slated between January 1 and March 31, 2008.

Microsoft's stand-alone hypervisor technology is called Hyper-V Server. It is hypervisor virtualization technology that is installed on the "bare metal" of a hardware platform without the need for a Windows operating system.

In fact, the Hyper-V Server could be the only piece of Microsoft technology running on the hardware given that Hyper-V supports virtual machines running operating system other than Windows, including Linux.

Microsoft rival VMWare has an enterprise-focused virtualization product it currently ships called ESX that also installs on bare metal.

Microsoft has been marketing virtualization as a feature of the operating system, but critics say the company is bending to the reality that OEMs will likely include a hypervisor virtualization layer as part of their hardware.

Dell, Fujitsu Siemens Computers, Fujitsu, Hitachi, HP, IBM, Lenovo, NEC and Unisys have all signed up to include Microsoft's Hyper-V server on their platforms.

Microsoft, however, also plans to sell Hyper-V directly to corporate users who could wipe a server clean and install Hyper-V Server, which is priced at US$28 and allows an unlimited number of virtual machines on a single box.

"Microsoft had clearly been very much in the hypervisor-virtualization-is-a-feature-of-the-operating-system camp," says Gordon Haff, an analyst with Illuminata. "I don't think Microsoft would phrase it this way, but clearly this is a step back from you can only get virtualization in the OS."

For its part, Microsoft says Hyper-V Server recognizes the fact that all hardware in essence will be a virtualization appliance.

"What we are trying to do enable customers to live in world where they treat all compute resources -- such as CPU cycles, storage, networking -- as a single blob while providing a consistent way of maximizing effectiveness and utilization while reducing costs for IT and making things more automated for IT," says Andy Lees, corporate vice president in Microsoft's server and tools marketing and solutions group. "And virtualization is the key piece of technology to enable that."

Haff says Microsoft's strategy shift isn't a negative, just a realization of where the technology seems to be headed.

"I think the general direction is going to be that the base hypervisor virtualization is going to be feature of the server rather than the [operating system]," he says " People like Dell and HP are going to embedded a hypervisor in the server, and in my view, it is not a big jump from there to say that in the not too distant future virtualization is just something that comes with the server like BIOS."

In addition to VMWare, others offer hypervisor technology that can install on bare metal including XenSource, which was recently bought by Citrix. Novell and Red Hat are also offering hypervisor technology with their operating systems.

Microsoft has existing partnership deals with both Novell and XenSource around virtualization integration.

But rival VMWare says Microsoft is sending a mixed message.

"Their product architecture is that virtualization is part of the [operating system] so they seem to be rethinking what hypervisor should be," says Raghu Raghuram, vice president of products and solutions for VMWare. "They are going to be coming out in almost one year with a basic-function hypervisor where today we have a robust hypervisor and 20,000 customers." And Raghuram adds WMWare comes with benefits such as availability and various management tools.

Haff says that speaks to what is truly interesting with virtualization, which are the tools needed to run and maintain a virtualized environment, especially requirements around management, and the fact that virtualized environments force IT to think about other parts of the network including storage, VLans, load balancing, SSL acceleration and firewalls.

"It's not about server virtualization," Forrester analyst Frank Gillett told Network World in August, "It's about when I have virtual servers I can completely change how I think about IT infrastructure. When I move virtual servers around I have to have storage that is not only networked but flexible so when I move the virtual server the storage connections go with it."

To that end, Microsoft Monday announced the availability of three of its System Center tools, including Virtual Machine Manager to manage virtualized servers.

The other tools are System Center Configuration Manager 2007, for client and server deployment and update, and System Center Data Protection Manager 2007, for backup and data recovery.

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EU To Critically Review Google's DoubleClick Deal


The European Commission will open a four-month, in-depth review of Google's plans to buy rival DoubleClick for US$3.1 ($4.18) billion, a source familiar with the situation said yesterday.

Google, which stores data on the internet-surfing habits of consumers, wants to buy DoubleClick to increase its clout in tailoring advertisements to consumer activities.

Both companies are involved in the sale of on-line ads, although their business models differ.

Google has already proposed alterations, and the deadline had been extended to Nov. 13 so the changes could be vetted by customers and competitors.

Google competition counsel Julia Holtz has said that in response to third-party concerns the company had committed to the Commission that it would keep certain DoubleClick business practices unchanged.

An in-depth probe will last an additional 90 working days and does not necessarily mean there would be more changes required in the transaction.

Critics have also raised questions about what effect the deal might have on privacy, but the Commission has said privacy by itself is not part of a competition review.

Google has by far the strongest position in Web searching in Europe. The acquisition has drawn vehement opposition from competitors such as Microsoft Corp and Yahoo Inc.

The European Commission is working closely with the US Federal Trade Commission, which has been reviewing the case since May.

In the United States, there has been one congressional hearing on the deal and Republicans are pressuring for more.

Google's purchase is part of a rapid consolidation in the internet ad industry that includes Microsoft's US$6 ($8.10) billion acquisition of aQuantive Inc, home to the largest interactive ad agency.

Yahoo bought BlueLithium for US$300 million and Time Warner Inc's AOL unit bought Tacoda.

Both of the acquired companies use cookie technology to record web surfing habits of consumers so advertisers can target ads based on the information.

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CBS, BSkyB, BBC... To Provide Free Video Content To Bebo



A host of media groups including US television network CBS, BSkyB and the BBC will provide free video content to the 40 million users on Bebo and keep any advertising revenues under a deal with the social networking site.

Bebo said on Tuesday its new "Open Media" system would allow users to store their favourite video and music content within their profile pages, and share it with others on the network.

The company expects the thousands of hours of entertainment content to make the site more attractive to users and therefore increase the value of its own advertising.

For the media companies involved, they will use their own video players to distribute content and will retain all of the advertising-related revenues. They will not be charged to distribute their content.

"Every media company is looking for better ways to deliver their content online," Bebo President Joanna Shields said.

"By opening our platform to media owners, who gain free access to our community while retaining control over their brand, their content and their revenues, we are creating valuable new inventory for advertisers and a new business model for the entire media industry."

Social networking sites such as Bebo, Facebook and MySpace are hugely popular with younger Web users - an important yet hard-to-reach category for advertisers - but media groups have struggled to convert their soaring popularity into revenue.

Bebo says its average user ranges from 13 to 24 years old and spends 40 minutes on the site each day they log on.

Facebook recently announced a new advertising system that will let companies introduce ads into the user pages of its 50 million members, and launch dedicated pages on the site for their brands.

Hulu, a free, advertising-supported online video service formed by NBC Universal and News Corp, launched at the end of last month.

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Two New Updates From Microsoft Expected Tuesday

Gregg Keizer

Microsoft has scheduled just two security updates for Tuesday to fix flaws in Windows 2000, XP and Server 2003. One of the two is a leftover from October that was bumped at the last minute.

Only one of the bulletins will be rated "critical," Microsoft's highest ranking, while the other will be labeled "important," the next-lower rating. As usual, Microsoft disclosed a limited amount of information about the upcoming updates in a prepatch notification posted to the company's Web site today.

The critical update affects Windows XP and Windows Server 2003, said Microsoft, which classified the vulnerability as a remote code execution bug. What the bulletin will fix, however, is up for speculation.

"It could be the Macrovision vulnerability," said Andrew Storms, director of security operations at nCircle, referring to the digital rights management software bundled with Windows that has already been targeted by in-the-wild attacks. "Macrovision has already got a fix, so Microsoft wouldn't have had to do any coding."

Storms noted, however, that Microsoft would have to stretch its usual definition of "remote code execution" to make the Macrovision vulnerability fit the update, since both companies have been calling it a privilege elevation flaw, and thus less serious. "Microsoft sometimes seems to go back and forth about privilege elevation," Storms said. "They might just say, 'sure it's an elevation, but it could also lead to remote code execution.' Or we may just see a reversal here of the bug's severity."

On the other hand, the critical bulletin may be aiming at something completely different. "It could be the URI protocol handler bug," Storms said.

Less than two weeks ago, Microsoft accepted responsibility for fixing a widespread flaw in how Windows deals with the Uniform Resource Identifier (URI) protocol handlers, which let browsers run other programs via commands in a URL. At the time, Bill Sisk, a member of Microsoft's security response team, said that the group was "working around the clock" on a patch. The company would not commit to a release date, however, or say whether it would make the next update rollout, now just a day away.

The debate over who was responsible for patching the problem with the URI protocol handler raged over the summer, when Microsoft denied that its software was at fault, and third-party application vendors, including Mozilla and Adobe Systems, pointed fingers at the company even as they patched their own products.

Tuesday's second update, which targets Windows 2000 and Windows Server 2003 but not XP, appears to be the one that was yanked before October's bulletins hit the Internet. The only hint Microsoft gave of its composition was the "Spoofing" label, which in the past has usually been used to describe vulnerabilities in Internet Explorer that phishers and identity thieves exploit to deceive users.

"I have no idea what this one is about," Storms said.

He was, however, sure of one thing: the light patching load users and administrators faced this month. "It's a 'where's the beef?' kind of month," he said. "Maybe we can all catch up a bit."

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A Look At Microsoft's Anti-Piracy MAR Program

Eric Lai

Microsoft introduced late last week a new pilot program to encourage refurbishers to install legitimate copies of Windows XP on used PCs.

The new Microsoft Authorized Refurbisher (MAR) program offers a discount off the retail price of Windows XP, along with deployment tools to help refurbishers reinstall Windows and all of the relevant drivers on renewed PCs in as little as 15 minutes, said Hani Shakeel, senior product manager of the genuine Windows product marketing team.

When MAR is fully expanded, it will also help stem what Microsoft acknowledges as widespread flouting of Microsoft's XP licensing rules by price-pressured refurbishers.

"There's a range of behavior. Definitely, what you're describing is happening," Shakeel said.

Observers say MAR also attempts to ameliorate another risk: that refurbishers, frustrated by the high cost and difficulty of following Microsoft's arcane Windows licenses to the letter, will simply install a free Linux operating system on renewed PCs instead.

Some resellers "are saying, 'We're just going to ship this stuff out with Ubuntu Linux,'" said Adam Braunstein, an analyst with the Robert Frances Group.

Braunstein estimates that for now, no more than one in ten refurbished PCs goes back out for sale sporting Linux rather than Windows. But Microsoft is worried.

"There are pieces of the armor that are pretty rapidly deteriorating," he said.

And the first two contestants are...

Two large refurbishers have been initially selected to participate in MAR: Redemtech and TechTurn.

Microsoft has long encouraged the donation and reuse of older PCs, albeit in a limited way. Its Community MAR program lets PC recyclers obtain cheap copies of Windows that they could use to install on used computers.

But the catch was that those licenses were only available for PCs destined for use by charities, schools and other non-profit groups. As a result, only 200,000 refurbished PCs worldwide last year benefited from the Community MAR program, according to Microsoft.

Meanwhile, up to 28 million refurbished PCs will be sold this year, making up 10% of the global PC market, according to Microsoft's Shakeel. Nearly all are destined to consumers and smaller companies.

Many of those PCs shipped will be violating some aspect of Microsoft's complicated End User License Agreement (EULA) for Windows. For instance, most refurbishers will assume that they can reinstall Windows onto a recycled PC using the license number on the original Certificate of Authenticity (COA) that shipped with it. In fact, Microsoft requires that refurbishers also have the original Windows installation CD.

That's a "near-impossible" requirement, says Braunstein. "You're probably lucky if half of the PCs [at a large company] still have the COA after three years," he said. As for the installation CD, "one of the first things a company does when they get a new PC is throw away the installation disc."

Confirmed Jake Player, president of TechTurn: "The majority of machines we get don't come with the original Windows CD."

A mixed message

Moreover, refurbishers struggle with even lower margins then conventional PC makers. At TurnTech's site, many several-year-old Pentium 4 desktops with Windows XP Professional command less than US$200.

"It's very difficult to make any money in this market," Braunstein said. "Microsoft has only been standing in the way of folks."

Unofficially, Microsoft has not strictly enforced its EULA with smaller refurbishers, choosing to tolerate this de facto piracy because the alternative -- refurbishers installing Linux instead -- is far worse in Redmond's eyes.

Microsoft's attitude "is 'Please don't pirate software. But if you do it, make it's ours,'" Braunstein said.

But large refurbishers such as TechTurn, which expects to sell 800,000 refurbished PCs this year, have been forced to comply with Microsoft's rules and ship out most of its PCs without any OS on them, says Player, which is why he has been "begging" Microsoft for relief.

Besides giving TurnTech an undisclosed discount on certified copies of Windows XP, Microsoft will supply the company with deployment software that will help detect and load needed drivers onto a large number of PCs in a matter of minutes.

"It helps customers know what they are buying," he said. "We are anticipating a sales uptick of 20%."

Relief and respite on the way

MAR comes just in time, too, from Player's point-of-view. He predicts a huge wave of older PCs will start hitting the market within a year or two, as companies upgrade to Vista and dump their existing, underpowered PCs.

Braunstein applauds MAR: "Microsoft is getting a little smarter," he said. But he thinks that until Microsoft expands the program, especially with smaller refurbishers, the company's likely to "continue to do things as is."

Shakeel said MAR will be "expanded as quickly as we can," first to North American refurbishers selling more than 5,000 systems a month, and then to other parts of the world.

A different program is in the works to encourage smaller refurbishers to get legal, he said. In the meantime, Shakeel confirmed that those firms won't have to worry about sudden anti-piracy enforcement coming from Redmond.

"There's nothing in the immediate horizon that should be a worry to the market," he said.

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Intel's Long-Awaited Power-Efficient 'Penryn Processors' Launched

Agam Shah

Intel has launched its long-awaited new line of power-efficient microprocessors, code-named Penryn, designed to deliver better graphics and application performance as well as virtualisation capabilities.

The chip-maker teamed up with 40 original equipment manufacturers to deliver Penryn-based Xeon and Core 2 processors. Vendors including HP and Lenovo have already announced business desktops with Penryn-based quad-core Xeon 5400 processors, with more server announcements scheduled to come soon.

The processors, manufactured using a 45-nanometre process, feature smaller transistors and cut down on electricity leaks, which made them faster and more power efficient than earlier 65-nm processors, director for Intel's digital enterprise group operations, Stephen Smith, said. The most power-hungry Penryn-based systems will consume no more than 120 watts (W).

Penryn-based notebooks that were due in the first quarter of 2008 would use 25W, Smith said. Today's 65-nm notebooks consumed 35W. While cutting down on power usage, Penryn processors jumped to higher clock rates and feature cache and design improvements that improved the processors' performance compared with earlier 65-nm processors, he said.

The processors deliver a 40-60 per cent improvement in video and imaging performance, Smith said. New instructions on the processor sped up photo manipulation and encoding of high-definition video.

Intel's Penryn processor for gaming systems, the 45nm Intel Core 2 Extreme QX9650 quad-core processor, took advantage of the instructions and included a larger cache to deliver better graphics and video performance, Smith said.

Hardware enhancements allowed virtual machines to load up to 75 per cent faster, Smith said.

The Penryn launch signalled a new era in the way Intel manufactures chips, he said. The processors were the first to use high-k metal-gate transistors, which make the processors faster and less leaky compared with earlier processors that have silicon gates. The processor was lead free, and by the second half of 2008, Intel would produce chips that were halogen free, making them more environmentally friendly, Smith said.

Intel will ship 12 new quad-core Intel Xeon 5400 server chips in November with clock speeds ranging from 2GHz to 3.20GHz, with a 12MB cache. In December, it will ship three dual-core Xeon 5200 server chips with clock speeds of up to 3.40GHz and a 6MB cache. Intel would deliver the 45nm Penryn processors in multiple phases, Smith said.

In the first quarter of 2008, Intel will release the 45nm Core 2 Quad processors and Core 2 Duo processors for desktops. In the same quarter, it will launch the Core 2 Extreme and Core 2 Duo processors for notebooks. Intel plans to release 45-nm processors for ultramobile PCs in 2008, though Smith couldn't provide an exact release date.

Penryn was a significant follow-up to the 65-nm Core 2 processor launched last year, principal analyst at Mercury Research, Dean McCarron, said.

A lot of business workstation users and gamers were interested in the improved media and system performance Penryn processors deliver, he said.

While the Penryn provides a small performance boost, it's not a major change in architecture, an analyst at Insight 64, Nathan Brookwood, said. Rather than upgrading to Penryn systems, customers might wait for Nehalem, the next big overhaul in Intel's chip architecture that was scheduled for release in 2008, Brookwood said.

At Intel Developer Forum in San Francisco in September, Intel CEO, Paul Otellini, demonstrated Nehalem, and said it would deliver better performance-per-watt and better system performance through its QuickPath Interconnect system architecture. Nehalem chips will also include an integrated memory controller and improved communication links between system components.

However, people who need to buy hardware now would invest in Penryn systems, Brookwood said.

"It's not a massive upgrade cycle on notebooks and desktops," he said.

Pricing of the 45-nm Intel Xeon processors ranges from $US177 to $US1279 in quantities of 1000, depending on the model, speeds, features and number ordered.

The 45-nm Intel Core 2 Extreme QX9650 quad-core processor is $999 in quantities of 1000.

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What Google GPhone Means For Apple, MS, Open Source, Enterprises

Jon Brodkin and Brad Reed

What, no GPhone? That was the reaction from numerous commentators after Google unveiled its long-anticipated mobile phone plan on November 5. Yet what Google and partners such as T-Mobile, Motorola and Sprint Nextel of the newly formed Open Handset Alliance are doing will have broad impacts on wireless technology.

At the moment, Google is not releasing any mobile devices on its own. Rather, it has collaborated with several technology and wireless companies to develop Android, an open source platform that can be used by third-party developers to create applications for mobile devices. Although Andy Rubin, Google's director of mobile platforms, won't comment on the company's future plans to create a mobile phone of its own, he does note that "if you were to build a GPhone, you'd build it out of this [Android] platform."

Even without a GPhone, Android is fascinating in its own right. Here's a look at what Android means for the wireless market, for the enterprise, for open source, for Apple and Microsoft, and of course, what it means for Google.

What Android means for the wireless market

Because Android is an open source platform, it will allow users to connect to any network they choose, and will also let them add whatever applications they want. Van Baker, a research vice president at Gartner, says if the platform is successful and becomes widely adopted, it could pressure the major carriers to loosen their grip on their wireless devices. Thus, he says, companies such as Verizon might think twice before they disable Bluetooth on their handsets if they know their customers can easily switch to another carrier that will allow them to do as they please.

Dylan Schiemann, CEO of Web applications developer SitePath, also thinks that Android could go a long way toward prodding carriers to open their devices to more third-party applications.

"The mobile carriers always want to control everything, but they're showing signs of backing off on that," he says. "Carriers have enjoyed a long period where they've controlled what you put on a phone, and where they've charged you for what you put on your phone. If the Android platform works, it could change that dynamic."

While AT&T has yet to publicly comment on the Android announcement, Verizon has given it a warm reception. Jeffrey Nelson, Verizon's executive director of corporate communications, says Verizon "welcomes the support of Google, handset makers and others for our goal of providing more open development of applications on mobile handsets" and that "the highly competitive wireless industry is demonstrating that neither legislation nor regulation is required to produce innovation."

What Android means for the enterprise

Some analysts say the enterprise impact will be minimal, because Google is making a consumer play with Android. But consumers like to bring popular devices to the office, and end up using them for both work and play.

"If it's successful and people have it, it will come into businesses and we'll adapt to it," says CTO Dave Leonard of Infocrossing, an IT outsourcing provider in New Jersey.

It's hard for IT departments to decide whether to support Google's Android, because it's a platform for developing phones, rather than a phone itself, says Ken Dulaney, a Gartner analyst. Each IT department is likely to pick one type of Android-powered phone to support and not support others, because they don't want to risk lack of interoperability, he says.

A better approach, argues Dan Kohn, COO of the Linux Foundation, is to pick one set of standards that IT will support for calendaring, e-mail applications, VPN and so on, and tell users they can use any mobile phone compatible with those standards.

What Android means for Google

Since Google makes most of its money from its AdSense ad distribution network, it has an interest in giving mobile phone users broad access to the Web. If more people have access to Google on their desktops and mobile devices, then advertisers will pay more for ad space.

Google Chairman and CEO Eric Schmidt ambitiously describes Google's target market: the entire universe of cell phone users.

"There are at least three billion mobile users in the world today, and there are more mobile phones worldwide than there are Internet users or landline phones," Schmidt says. "Getting people access to info is Google's core mission and mobile phones have to be part of that."

Implied in that mission is that Google, in turn, gains access to consumers of advertising.

"Google is enabling advertising in a very real way in the handset world," says Frank Dickson, co-founder and chief research officer of Multimedia Intelligence. "You're going to see a whole host of advertising-supported applications being ... delivered ... into the handset. Google is the most efficient provider of advertising in the online world."

What Android means for open source and Linux

Linux already has a major presence on mobile phones, but the entrance of Google and the Open Handset Alliance -- which has 34 member organizations worldwide -- adds to the momentum.

"We're a huge believer in diversity of options on mobile phones," Kohn of the Linux Foundation says. "Linux is already an important, growing presence there. I think having the Google software as an additional open source option is only going to accelerate that adoption."

Today's mobile operating systems include the open source Symbian and the proprietary Windows Mobile. Kohn's key concern is enabling interoperability, so that Web applications designed for one open source phone work well on others. "Although there are a huge number of mobile phones using Linux today, there tends not to be great interoperability between them," he says.

While Kohn welcomes Google's presence, he thinks further crowding of the Linux mobile landscape might confuse matters. There's already the LiMo Foundation, which makes a Linux platform for mobile phones; the Consumer Electronics Linux Forum; and the Mobile Linux Initiative.

"We have so many darn acronyms and different consortiums at this point, that I'd actually hope to see a little consolidation," Kohn says."

What Android means for Microsoft

Nothing -- but only if you believe Microsoft.

"We already have an alliance around Windows Mobile, with 160 wireless operators in 55 countries and with 48 device makers," Scott Rockfeld, a mobile communications group product manager at Microsoft, says in a Computerworld story. "Nothing new and revolutionary was announced" with Android, Rockfeld said. "It was ho-hum compared to what we've done for the last five years with Windows Mobile."

But an open source development platform backed by a name like Google could eat into Microsoft's market share, Dickson argues.

"They're struggling because the Microsoft model is licensed software," he says. "When you start licensing software for US$20 or US$40 on a handset that costs US$100 to manufacture, that's quite a hit."

Forrester wireless analyst Charles Golvin says Microsoft should take an approach similar to the one Google is taking with Android. "Competitors like Yahoo and even Microsoft stand to benefit should they embrace this approach," Golvin says. "The impact will build slowly over time as initially the devices using this platform will form a very small percentage of the market."

What Android means for Apple

Apple's iPhone will survive Google's wireless initiative unscathed, partly because Apple's focus is hardware rather than software, and partly because it commands only a small portion of the mobile phone market to begin with, Dickson says.

"Apple is a fraction of a percent of the global market share in handsets," Dickson says. "They're just not that big. ... Because of the size of Apple I don't see a large impact on Apple. I see Apple still providing innovative hardware solutions coupled with well-performing software."

Apple has little need to join Google's open source initiative, according to research issued by financial services company Piper Jaffray.

"While Apple is a closed system, it does allow developers to build applications for the iPhone. We believe that Android will give many phone makers their first access to software with full Web-browsing functionality, which the iPhone already offers," states a research note issued just after Google's announcement. "Apple is confident that its iPhone operating system is a compelling one, and developers will want to build applications for the iPhone.

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Vodafone Introduces Toll Free Service Thus Eliminating Fixed-Line Phone

Christine Nikiel

Vodafone hopes to unlock Telecom's stranglehold on the home phone market, today releasing a toll-free service which eliminates the need for a fixed-line phone.

To use the service, customers plug their existing handsets, cordless or corded, into a box and make calls, keeping their existing phone number.

But their calls will then be transmitted via the Vodafone mobile network - bypassing Telecom's copper wire network.

Vodafone's general manager of products, Kursten Shalfoon, said it was the first time that national competition had existed in the local fixed-line market. Traditionally Telecom has had the market to itself through its control of fixed-line infrastructure, although Telstra competes in Wellington and central Christchurch.

Called "Vodafone at home", the service offers unlimited free national calling to any local number and means consumers no longer need to have a Telecom landline to make and receive free local calls.

"The idea of toll calling areas is old fashioned and out of date so we've decided not to bother with it at all," Shalfoon said. "For the first time every New Zealander will be able to make a complete break from the old way of making phone calls."

Vodafone has been chipping away at Telecom's offerings in a bid to expand beyond the mobile market. Earlier this year it bought internet service provider ihug, and offered a free broadband package, and in November released a business tolls package offering heavily discounted calls to mobiles.

Shalfoon said Vodafone had been working on the new service for "a number of years", and the company had to get help from the Commerce Commission to access local numbers.

He would not give figures but said that the investment was "sig-nificant".

Shalfoon said Vodafone's next offering would be a mobile phone version of the box which would work within a virtual zone in the home, next year.

The "Vodafone at home" service costs $39.95 a month. Calls to Vodafone mobiles would have a set price per minute, and international calls would be based on Vodafone's existing fixed-line offers. The box will retail for $99.

Calls to Vodafone mobiles in New Zealand will still cost 39c a minute and calls to other mobiles 55c a minute.

FACT BOX

* Vodafone is taking on Telecom in the fixed line market.

* New service from Vodafone means no need for fixed line and no more local toll calls.

* Customers pay $39.95 a month for an unlimited number of calls, including free toll calls.

* The box retails for $99.

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TelstraClear Australia Uses CDMA To Re-Enter Mobile Phone Market


Australian owned TelstraClear said today it was re-entering the mobile phone market ahead of schedule with a full service offering for small and medium enterprise business customers.

Early next year, the service would be offered to residential customers and large businesses.

TelestraClear previously resold Vodafone's service, but the pair parted company in June.

The new service will use Telecom's CDMA network. TelestraClear will attempt to woo its fixed line service small and medium business customers to its mobile service.

Spokeswoman Brenda Stonestreet said that in the past TelstraClear offered the same plans as Vodafone at much the same price, but it would now deliver something different.

It had successfully run a pilot scheme of its service with selected customers.

The small and medium business offering includes two voice plans and one data plan, with further plans and bundled products planned for the new year.

TelstraClear's BizMobile Plus plan costs $99.95 per month including 400 minutes of calls to any local landline or mobile at any time. Customers can also buy three gigabytes of data for $75 per month.

The Starter plan costs $30 per month access, with a straight calling rate 40 cent a minute.

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Refurbished iPod nano, 8GB - Black


Refurbished iPod nano, 8GB - Black




















MacBook 2.16GHz Intel Core 2 Duo - Black

MacBook 2.16GHz Intel Core 2 Duo - Black


MacBook 13-inch 2.16GHz Intel Core 2 Duo - Black with 1GB RAM, built-in iSight and more.




















MacBook 2.0GHz Intel Core 2 Duo - White

MacBook 2.0GHz Intel Core 2 Duo - White


MacBook 13-inch 2.0GHz Intel Core 2 Duo - White with 1GB RAM, built-in iSight and more.




















Refurbished iPod nano, 4GB - Blue

Refurbished iPod nano, 4GB - Blue


Refurbished iPod nano, 4GB - Blue




















Refurbished iPod nano, 4GB - Pink

Refurbished iPod nano, 4GB - Pink


Refurbished iPod nano, 4GB - Pink












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Apple Products You Can Not Live Without







iPod touch 16GB - Black

iPod touch 16GB - Black


iPod touch 16GB - Black




















MacBook Pro 17-inch - 2.33GHz Intel Core 2 Duo

MacBook Pro 17-inch - 2.33GHz Intel Core 2 Duo


17-inch MacBook Pro with 2GB RAM, 2.33 GHz Intel Core 2 Duo processor, and built-in iSight and more.





















Refurbished AirPort Extreme Card

Refurbished AirPort Extreme Card


AirPort Extreme Card




















Refurbished AirPort Express Base Station with AirTunes

Refurbished AirPort Express Base Station with AirTunes


AirPort Express Base Station with AirTunes




















Refurbished iPod, 30GB - Black

Refurbished iPod, 30GB - Black


Refurbished iPod, 30GB - Black




















Refurbished iPod nano, 4GB - Pink

Refurbished iPod nano, 4GB - Pink


Refurbished iPod nano, 4GB - Pink




















Refurbished iPod shuffle 1GB - 2nd Gen (silver)

Refurbished iPod shuffle 1GB - 2nd Gen (silver)


Refurbished iPod shuffle 1GB - 2nd Gen (silver)




















Refurbished iPod nano, 4GB - Silver

Refurbished iPod nano, 4GB - Silver


Refurbished iPod nano, 4GB - Silver




















Apple TV 40GB

Apple TV 40GB


Use Apple TV to get your movies, TV shows, music, podcasts, and photos from your computer to your widescreen TV.




















AirPort Extreme Base Station

AirPort Extreme Base Station


The all new AirPort Extreme, 802.11n Wi-Fi wireless base station for Mac + PC, up to 5X the performance, up to 2X the range.




















MacBook 2.0GHz Intel Core 2 Duo - White

MacBook 2.0GHz Intel Core 2 Duo - White


MacBook 13-inch - 2.0GHz Intel Core 2 Duo - White with 1GB RAM, built-in iSight and more.




















iPod classic 160GB - Black

iPod classic 160GB - Black


iPod classic 160GB - Black




















iPod touch 8GB - Black

iPod touch 8GB - Black


iPod touch 8GB - Black




















iPod nano (PRODUCT) RED Special Edition 8GB

iPod nano (PRODUCT) RED Special Edition 8GB


iPod nano (PRODUCT) RED Special Edition 8GB




















iPod nano 8GB - Blue

iPod nano 8GB - Blue


iPod nano 8GB - Blue




















iPod shuffle (PRODUCT) RED Special Edition 1GB

iPod shuffle (PRODUCT) RED Special Edition 1GB

iPod shuffle (PRODUCT) RED Special Edition 1GB



















iPod shuffle 1GB - Blue

iPod shuffle 1GB - Blue


iPod shuffle 1GB - Blue












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