Will Blackberry Embrace Android?

BlackBerry Ltd’s move to embrace Android, although geared towards lifting revenue from its software and device management segment, could inadvertently give its device arm a new lease on life.

“From the standpoint of marketing, this is a great way for BlackBerry to get visibility. It really doesn’t hurt them much, and the upside is high,” said Rob Enderle, who runs technology consulting firm Enderle Group.

Enderle and other financial and tech analysts agree that the move by BlackBerry does present its own set of challenges as the company would have to support two platforms and potentially put some resources into marketing an Android device, but with little to lose most agree it comes with little downside.

“If Android has one significant weakness it is security and that’s just the thing that BlackBerry can fix, so it could play out pretty well and I am actually quite surprised that they did not try this sooner,” said Enderle, adding that BlackBerry has to deliver a compelling device in order for the gambit to work.

Reuters reported last week that BlackBerry was considering a move to test run Android on its upcoming slider device, as part of a bid to convince potential corporate and government clients that its device management system, BES12, is truly able of manage and secure not just BlackBerry devices, but also devices powered by Google’s Android, Apple’s iOS and Microsoft’s Windows operating system.

“In order for BES12 to succeed it has to be viewed by all as platform agnostic, and what better way to demonstrate that other than by doing it yourself,” said Ramon Llamas, an analyst with technology research firm IDC.

BlackBerry, which once dominated the smartphone market, has seen its market share drop to under 1 percent, as the iPhone and a slew of Android devices from Samsung have captured market share. John Chen, a turnaround expert brought in to fix its slide, is now pivoting BlackBerry to focus more on its well-regarded software and device management business.

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USAA Exploring Bitcoins

USAA, a San Antonio, Texas-based financial institution serving current and former members of the military, is researching the underlying technology behind the digital currency bitcoin to help make its operations more efficient, a company executive said.

Alex Marquez, managing director of corporate development at USAA, said in an interview that the company and its banking, insurance, and investment management subsidiaries hoped the “blockchain” technology could help decentralize its operations such as the back office.

He said USAA had a large team researching the potential of the blockchain, an open ledger of a digital currency’s transactions, viewed as bitcoin’s main technological innovation. It lets users make payments anonymously, instantly, and without government regulation.

The blockchain ledger is accessible to all users of bitcoin, a virtual currency created through a computer “mining” process that uses millions of calculations. Bitcoin has no ties to a central bank and is viewed as an alternative to paying for goods and services with credit cards.

“We have serious interest in the blockchain and we think the technology would have an impact on the organization,” said Marquez. “The fact that we have such a large group of people working on this shows how serious we are about the potential of this technology.”

USAA, which provides banking, insurance and other products to 10.7 million current or former members of the military, owns and manages assets of about $213 billion.

Marquez said USAA had no plans to dabble in the bitcoin as a currency. Its foray into the blockchain reflects a trend among banking institutions trying to integrate bitcoin technology into their systems. BNY Mellon and UBS have announced initiatives to explore the blockchain technology.

Most large banks are testing the blockchain internally, said David Johnston, managing director at Dapps Venture Fund in San Antonio, Texas. “All of the banks are going through that process of trying to understand how this technology is going to evolve.”

“I would say that by the end of the year, most will have solidified a blockchain technology strategy, how the bank is going to implement and how it will move the technology forward.”

USAA is still in early stages of its research and has yet to identify how it will implement the technology.

In January this year, USAA invested in Coinbase, the biggest bitcoin company, which runs a host of services, including an exchange and a wallet, which is how bitcoins are stored by users online.

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Will Apple Go All-In On Car Batteries?

A year and a half ago, Apple Inc applied for eight patents related to car batteries. Recently, it has added a slew of engineers, just one of whom had already filed for 17 in his former career, according to a Thomson Reuters.

The recent spate of hires and patent filings shows that Apple is fast building its industrial lithium-ion battery capabilities, adding to evidence the iPhone maker may be developing a car.

Quiet, clean electric cars are viewed in Silicon Valley and elsewhere as a promising technology for the future, but high costs and “range anxiety”, the concern that batteries will run out of power and cannot be recharged quickly, remain obstacles. Those challenges could also be seen as opportunities to find solutions to take the technology mainstream.

The number of auto-related patents filed by Apple, Google Inc, Korea’s Samsung, electric carmaker Tesla Motors Inc and ride-sharing startup Uber tripled from 2011 to 2014, according to an analysis by Thomson Reuters IP & Science of public patent filings.

Apple has filed far fewer of these patents than rivals, perhaps adding impetus to its recent hiring binge as it seeks to get up to speed in battery technologies and other car-building related expertise.

As of 18 months ago, Apple had filed for 290 such patents. By contrast, Samsung, which has been providing electric vehicle batteries for some years, had close to 900 filings involving auto battery technology alone.

The U.S. government makes patent applications public only after 18 months, so the figures do not reflect any patents filed in 2014.

Earlier this month, battery maker A123 Systems sued Apple for poaching five top engineers. A search of LinkedIn profiles indicates Apple has hired at least another seven A123 employees and at least 18 employees from Tesla since 2012.

The former A123 employees have expertise primarily in battery cell design, materials development and manufacturing engineering, according to the LinkedIn profiles and an analysis of patent applications.

A123, which filed for bankruptcy in 2012 but has since reorganized, supplied batteries for Fisker Automotive’s now-discontinued hybrid electric car.

“Looking at the people Apple is hiring from A123 and their backgrounds, it is hard not to assume they’re working on an electric car,” said Tom Gage, Chief Executive of EV Grid and a longtime expert in batteries and battery technology.

Apple is building its own battery division, according to the A123 lawsuit. Apple did not immediately respond to a request for comment.

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Can The USPS Win At E-commerce?

Dealing with a decline in the mail it has been delivering since the days of America’s Revolutionary War, in 2012 the U.S. Postal Service began aggressively targeting e-commerce and lapsed customers as the way to salvage its slumping business.

“Really it started almost at the level of cold-calling, talking to people who really hadn’t spoken to us in a long time,” said Nagisa Manabe, who joined the USPS in May 2012 as chief marketing and sales officer from Coca-Cola Co after a career in the private sector. “And really trying to persuade them to consider us as a very viable alternative in the shipping market.”

With further drops in its traditional bread-and-butter products ahead, the USPS wants to capitalize on e-commerce, which consulting firm Detroit LLP has predicted should grow 14 percent this holiday season alone. But industry experts question whether the USPS has enough space in its delivery vans and whether its unionized work force can handle a greater proportion of the e-commerce market.

Over the past two years the USPS has rolled out real-time scanning for packages, a vital tool for online retailers and consumers alike to track their packages. It is also upgrading all of its delivery workers’ handheld scanners.

The rise of the Internet has taken a heavy toll on first-class mail, the USPS’s most profitable product. That falling business played a significant role in the USPS’s fiscal 2014 loss of $5.5 billion, its eighth consecutive year in the red.

From 2009 to 2013, the volume of first-class mail deliveries dropped more than 20 percent. In the fiscal year ending Sept. 30, USPS deliveries declined to 155.4 billion pieces from 158.2 billion. First-class deliveries accounted for 2.2 billion pieces of that decline.

But package deliveries rose to more than 4 billion pieces from 3.7 billion, accounting for $1.1 billion of the USPS’s revenue growth of $1.9 billion. In the run-up to Christmas, the USPS has been doing Sunday deliveries for Amazon.com Inc in a number of cities. Manabe adds that the agency will handle the online retailer’s push into same-day and next-day deliveries “in many markets.”

EBay Inc is another major customer and Manabe says “pretty much anyone who’s in the e-commerce space at least does some volume with us.”

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Oracle Acquires Datalogix

On Monday, Oracle agreed to purchase Datalogix for an undisclosed sum, saying that together the companies will provide marketers with a richer understanding of what consumers do, say and buy, allowing them to measure the effectiveness of their different campaigns and advertising channels.

Oracle plans to link the Datalogix service, which provides the spending data to customers through a cloud-based tool, to its other cloud-based services via Oracle Identity Graph. This, it said, will allow it to connect consumer identities to build better profiles that can be used to personalize online and mobile services — and even to target them offline and via the TV.

It made no commitment to maintain the existing Datalogix product roadmap, saying that it was still reviewing its plans. The companies set no timeline for completing the deal, which they said must meet customary closing conditions including obtaining regulatory approval.

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Will Marriott Block Wi-Fi

The U.S. Federal Communications Commission will render a decision on whether to establish rules regarding hotels’ ability to block personal Wi-Fi hotspots inside their buildings, a practice that recently earned Marriott International a $600,000 fine.

In August, Marriott, business partner Ryman Hospitality Properties and trade group the American Hotel and Lodging Association asked the FCC to clarify when hotels can block outside Wi-Fi hotspots in order to protect their internal Wi-Fi services.

In that petition, the hotel group asked the agency to “declare that the operator of a Wi-Fi network does not violate [U.S. law] by using FCC-authorized equipment to monitor and mitigate threats to the security and reliability of its network,” even when taking action causes interference to mobile devices.

The comment period for the petition ended Friday, so now it’s up to the FCC to either agree to Marriott’s petition or disregard it.

However, the FCC did act in October, slapping Marriott with the fine after customers complained about the practice. In their complaint, customers alleged that employees of Marriott’s Gaylord Opryland Hotel and Convention Center in Nashville used signal-blocking features of a Wi-Fi monitoring system to prevent customers from connecting to the Internet through their personal Wi-Fi hotspots. The hotel charged customers and exhibitors $250 to $1,000 per device to access Marriott’s Wi-Fi network.

During the comment period, several groups called for the agency to deny the hotel group’s petition.

The FCC made clear in October that blocking outside Wi-Fi hotspots is illegal, Google’s lawyers wrote in a comment. “While Google recognizes the importance of leaving operators flexibility to manage their own networks, this does not include intentionally blocking access to other commission-authorized networks, particularly where the purpose or effect of that interference is to drive traffic to the interfering operator’s own network,” they wrote.

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Office 365 Goes Video Streaming

Microsoft unveiled Office 365 Video, a YouTube-like streaming service where enterprises and large organizations can post in-house video content for communication and training.

“Office 365 Video provides organizations with a secure, company-wide destination for posting, sharing and discovering video content,” said Mark Kashman, a senior product manager with the Office 365 team, in a blog posting.

Kashman touted Video as a tool for internal communications, citing the examples of new-employee orientation, management messaging and worker training. Employees will also be able to contribute to a “Community” section, though most companies will probably frown on cat antic clips.

The service rolls out over the next few days to companies that have registered for Office 365′s First Release early distribution program, then through early 2015 to others.

Video will be available only to subscribers of Office 365′s plans for enterprises — E1 through E4 — and universities (A2 through A4). It will not be offered to consumer subscribers or firms with small business-oriented plans like Business Essentials, Business and Business Premium.

Kashman also said Office 365 plans for government agencies will get Video at some point, but he did not proffer a timeline.

The other requirement is SharePoint Online, an off-premises component of the enterprise and academic plans, but missing from the increasingly popular Office 365 ProPlus, the rent-not-buy plan used by organizations that have decided to retain their back-end services, like SharePoint and Exchange, on premises.

Although Office 365 Video has elements of consumer streaming services like Google’s YouTube, it’s strictly an in-house affair: It will be available only to employees, and then only those whom IT administrators have assigned access rights.

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Should Encryption Be The Norm?

Encryption should be a matter of priority and used by default. That’s the message from the Internet Architecture Board (IAB), the worldwide body in charge of the internet’s technology infrastructure.

The IAB warned in a statement that “the capabilities and activities of attackers are greater and more pervasive than previously known”.

It goes on to say: “The IAB urges protocol designers to design for confidential operation by default. We strongly encourage developers to include encryption in their implementations, and to make them encrypted by default.

“We similarly encourage network and service operators to deploy encryption where it is not yet deployed, and we urge firewall policy administrators to permit encrypted traffic.”

The purpose, the IAB claims, is to instill public trust in the internet after the myriad high-profile cases in which computer traffic has been intercepted, ranging from bank details to email addresses and all points in between.

The news will be unwelcome to the security services, which have repeatedly objected to initiatives such as the default encryption in iOS8 and Android L, claiming that it is in the interest of the population to retain the right to intercept data for the prevention of terrorism.

However, leaked information, mostly from files appropriated by rogue NSA contractor Edward Snowden, suggests that the right of information interception is abused by security services including the UK’s GCHQ.

These allegations include the collection of irrelevant data, the investigation of cold cases not in the public interest, and the passing of pictures of nude ladies to colleagues.

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New Data Suggest IT Hiring Increasing

Whenever IT hiring increases, as it did last month, the default explanation from analysts is this: The economy is improving.

That might be true, and it may well explain the U.S. Department of Labor’s report today that showed the U.S., overall, added 214,000 jobs last month.

Of that total employment gain, IT hiring grew by 7,800 jobs in October, compared with a gain of 6,900 jobs in September, according to TechServe Alliance, an IT industry group.

Another IT labor analyst group, Janco Associates, calculated last month’s IT gains at 9,500 jobs.

Government data can be reported in different ways, depending on which job categories are included in the IT job estimates, and it is why analysts report job numbers differently.

Hiring trends are also affected by Labor Department adjustments, and the government’s adjusted data adds nearly 25,000 telecom jobs over the past two months, according to Janco. Because of this adjustment, Janco termed the recent growth in IT over the past several months “explosive,” while TechServe put last month’s results as “modestly stronger.”

There is no one reason for October’s gain. An improving economy may be at the heart of any answer. Independent of the government numbers, Computer Economics, in a recent report on contingent versus full-time hiring, said it is seeing a drop in the use of contract workers at large companies and more reliance on full-time workers, which is a sign of an improving economy.

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Silk Road 2.0 Shutdown

U.S. governmnent authorities said they have shut down the successor website to Silk Road, an underground online drug marketplace, and charged its alleged operator with conspiracy to commit drug trafficking, computer hacking, money laundering and other crimes.

Blake Benthall, 26, was arrested last Wednesday in San Francisco and was expected to make an initial court appearance in federal court there later on Thursday.

The charges against Benthall carry a maximum sentence of life in prison.

A lawyer for Benthall could not immediately be identified.

Silk Road 2.0 was launched late last year, weeks after authorities had shuttered the original Silk Road website in October and arrested its alleged owner, Ross Ulbricht, who went by the online alias, Dread Pirate Roberts.

“Let’s be clear – this Silk Road, in whatever form, is the road to prison,” Manhattan U.S. Attorney Preet Bharara, whose office is prosecuting both cases, said in a statement.

Benthall, known as “Defcon” online, became the operator of Silk Road 2.0 in December, one month after an unnamed co-conspirator launched the site, according to prosecutors.

Silk Road 2.0 provided an online bazaar where users across the world could buy and sell drugs, computer hacking tools and other illicit items, using the digital currency Bitcoin as payment, authorities said.

As of September, the site was generating at least $8 million a month in sales, they said.

The government’s investigation included an undercover agent who was able to infiltrate the administrative staff of the website and interact directly with Benthall, prosecutors said.

Ulbricht, 30, has pleaded not guilty and is scheduled for trial in New York in January.

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