IRS Reducing Size Of Cybersecurity Staff

The Internal Revenue Service, which confirmed rumors of a breach of 100,000 taxpayer accounts, has been consistently reducing the size of its internal cybersecurity staff as it increases its security spending. This may seem paradoxical, but one observer suggested it could signal a shift to outsourcing.

In 2011, the IRS employed 410 people in its cybersecurity organization, but by 2014 the headcount had fallen by 11% to 363 people, according to annual reports about IRS information technology spending by the U.S. Treasury Department Inspector General.

Despite this staff reduction, the IRS has increased spending in its cybersecurity organization. In 2012, the IRS earmarked $129 million for cybersecurity, which rose to $141.5 million last year, an increase of approximately 9.7%.

This increase in spending, coupled with the reduction in headcount, is an indicator of outsourcing, said Alan Paller, director of research at the SANS Institute. Paller sees risks in that strategy.

“Each organization moves at a different pace toward a point at which they have outsourced so much that the insiders do little more than manage contracts, and lose their technical expertise and ability to manage technical contractors effectively,” said Paller.

An IRS spokesman was not able to immediately answer questions about the IRS’s cybersecurity spending.

This breach is drawing congressional scrutiny. On Tuesday, U.S. Senator Orrin Hatch (R-Utah), who heads the Senate Finance Committee, called the breach “unacceptable.”

The IRS’s total IT budget in 2014 was $2.5 billion, an increase from the prior year’s $2.3 billion, with 7,339 employees last year, little change from 7,303 reported in 2013.

The agency’s IT budget has fared better than the agency overall. Congress has been cutting spending at the agency. IRS funding has been reduced by $1.2 billion over the last five years, from $12.1 billion in 2010 to $10.9 billion this year. An IRS official told lawmakers earlier this year that the budget cuts have delayed critical IT investments of more than $200 million, which includes replacing aging IT systems.

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FCC To Tighten Rules On Robocalls

The top U.S. telecommunications regulator wants to make it more difficult for telemarketers and other businesses to robocall and text messages consumers under changes to autodialing rules being proposed.

The Federal Communications Commission plans to vote on June 18 on the proposal, which would give legal cover to telephone companies to offer consumers technologies that would block robocalls, regardless of where they originate.

“The FCC wants to make it clear: Telephone companies can – and in fact should – offer consumers robocall-blocking tools,” FCC Chairman Tom Wheeler said in a blog post.

The wireless carriers have worried that blocking automated calls could be construed as violations of the law that requires them to ensure that all calls placed over their networks reach their intended recipients.

The proposal would also reassert that consumers have to agree to receive automated calls and texts and clarify that they can revoke their consent in any “reasonable” way, including a simple request for calls to stop, without the need to file convoluted paperwork.

Robocalls and robotexts are by far the most common cause of consumer complaints at the FCC, topping 215,000 in the last year alone. Consumer advocates and the majority of U.S. states attorneys general had pressed the FCC to clarify the robocall rules.

Numerous business associations, including the U.S. Chamber of Commerce, have also pushed for clarifications, facing a growing number of lawsuits prompted by violations such as calling cellphone users whose numbers used to belong to someone else.

The FCC’s proposal would reassert that companies should try to avoid numbers reassigned to consumers who have not agreed to receive their calls. If they do not know that a number has been reassigned, they are allowed one call to find out.

The business community had also complained that some lawsuits unfairly target them for using dialing technologies that could be modified to become autodialers. FCC officials said any technology with the capacity to dial random or sequential numbers qualifies as an autodialer, even if it would require modification.

U.S. law prohibits telemarketing calls to both landline and cellphones of consumers who have not given written consent.

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Broadcom Aquired?

It is starting to look Broadcom will get bought out by its rival Avago as deep throats within both outfits think a deal is close.

Avago is in advanced buyout talks to acquire Broadcom, which manufacturers chips for both the smartphone and broadband industries. The two companies are more or less the same size, but at the moment Broadcom is the weaker partner

It has been the subject of previous speculation regarding acquisitions. The company is among the largest maker of chips for mobile systems such as smartphones, tablets and wearables, Internet of things (IoT) devices and automotive technology products.

Such capabilities could give Avago greater traction in fast-growing markets like IoT and mobile devices.

Broadcom announced last year that it was closing its baseband cellular chip business after being unable to gain inroads against such competitors as Qualcomm. The company had $8.4 billion in revenue last year.

It seems everyone wants a lot more consolidation in the chip industry. Intel reportedly resumed buyout talks to acquire Altera earlier this month, with the parties eyeing a potential price that could reach $13 billion. Micron was tipped as a potential buyer of rival SanDisk.

An April report cited a note from Bernstein analyst Mark Newman. According to this report, Newman pointed to SanDisk’s current valuation as making it a prime takeover target for rival NAND chip maker Micron, as well as other players in the market.

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Qualcomm Strengthens IoT Lineup

Qualcomm is wedging its foot more firmly in the Internet of Things (IoT) door by announcing a range of moves to secure its position in the market.

The first announcement sees the firm expanding its Internet of Everything (IoE) platform with the addition of six new ecosystem providers: Ayla Networks, Exosite, Kii, Proximetry, Temboo and Xively by LogMeIn.

“This will further simplify the development of devices that use WiFi to connect to the IoE by increasing cloud service flexibility and making these solutions available in a broader global reach,” Qualcomm said.

Qualcomm has also introduced two connectivity solutions, the QCA401x and QCA4531, which bring WiFi capabilities to connect products across development platforms and “give customers an expedited and cost-effective path to deployment”.

The QCA401x is designed to ease manufacturer demand for increased computing and memory while lowering size, cost and power consumption, Qualcomm said.

It features a fully integrated micro controller unit with up to 800KB of on-chip memory and an expanded set of interfaces to directly interconnect with sensors, display and actuators, further reducing system cost, size and complexity.

The QCA401x also includes a suite of communication protocols including Wi-Fi, IPv6, and HTTP, as well as an advanced security feature designed to maximise security in IoT devices.

The QCA4531 is a low-cost turnkey solution that brings high-performance connectivity with a user-programmable Linux/OpenWRT environment.

It is designed to serve as an IoT node taking advantage of the Linux framework and as a hub to enable an IoT Ecosystem.

“As the [IoT] ecosystem expands, the QCA4531 is ideal for multi-protocol bridging and communication, bringing together multiple wireless medium and bridging between different ecosystems,” said Qualcomm.

The QCA4531 can function as an Access Point supporting up to 16 simultaneous devices, and is also power-optimised to enable appliances to meet international standards for energy efficiency.

The firm also banged on about the development of its subsidiaries Qualcomm Technologies, Qualcomm Atheros, Qualcomm Life, and Qualcomm Connected Experiences, and their progress across its range of IoT technologies.

Broadly, this includes an increased focus on providing better connectivity in the smart home with the AllSeen Alliance, as well as the development of more wearables in more countries, deploying more connected cars, more active engagements in smart city developments and partnering with more customers for connected healthcare.

“Driven by the significant growth and diversity of interconnected devices, Qualcomm companies are delivering the solutions and collaborating with technology leaders to empower manufacturers to create the best connected experiences in homes, businesses, cars and cities,” the firm said.

Qualcomm also announced additional features in its AllPlay smart media platform, including Bluetooth to WiFi re-streaming, custom audio settings and optimised synchronisation. The new AllPlay feature combines Bluetooth and WiFi for “whole home streaming”.

This means that all local or cloud-based music on a consumer’s smartphone can be streamed to any Bluetooth-compatible AllPlay speaker and then re-streamed over WiFi to multiple AllPlay speakers, all in sync.

This allows simple wireless connectivity to individual speakers or an entire home audio system over the user’s existing home WiFi network, providing an advantage over Bluetooth-only speakers which are limited to one-to-one streaming.

“The range and capacity of WiFi, coupled with the ubiquity of Bluetooth, is a game-changing combination for manufacturers and consumers alike,” said Sy Choudhury, senior director of product management at Qualcomm.

“AllPlay device manufacturers like Hitachi and Monster can now offer their customers more connectivity options and access to myriad streaming services throughout their home with this new capability.”

Qualcomm announced last month that it has teamed up with Dutch semiconductor maker NXP to bolster its near field communication offering, expanding the technology outside the smartphone and into IoT devices.

NXP’s embedded secure element will be integrated across Qualcomm’s Snapdragon 800, 600, 400 and 200 processor-based platforms.

The new offering features a module variant derived from the recently launched NXP PN66T NQ220 module, now named the NQ220.

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Sharp Pinning Hopes On In-car Displays

Struggling display manufacturer Sharp, reeling from cutthroat competition in mobile phones, will push car makers to incorporate vehicle dashboards that have gestural commands, thin bezels and other next-generation features.

It’s hoping cars will be controlled, in part, through high-resolution displays that can fit any two-dimensional surface area, such as dashboard panels with rounded contours.

The company has shown off the wavy screens for cars and consoles in recent months, and has tried to woo automakers to use them. Under the firm’s new medium-term strategy, the push has taken on greater urgency.

Thin-bezel dashboard LCDs, as well as screens that can provide multiple views to different passengers in a car depending on their perspective, could prove to be a lifeline for Sharp, which hasn’t been able to command a dominant market position despite cutting-edge technology.

Sharp is an Apple supplier and is said to be a maker of iPhone 6 screens, along with Japan Display, and LG Display of South Korea.

Apple sources some of its screens from Sharp’s Kameyama plants in central Japan, which produce the maker’s flagship IGZO (indium gallium zinc oxide) transparent crystalline semiconductor displays. IGZO displays, which Sharp began producing for smartphones in 2013, have smaller pixels than conventional LCD screens and feature low power consumption.

Last month, Sharp showed off a 5.5-inch display with 3860 x 2160 or 4K pixel resolution, which was part of a 12.5-inch IGZO panel. But there were no immediate plans for mass production.

Sharp’s ability to generate dazzling phone graphics hasn’t saved its bottom line. The firm announced a US$1.7 billion bailout from banks this week, its second lifeline in three years, and posted a dismal earnings performance for the year to March 31 with a net loss of ¥222.3 billion ($1.8 billion). It blamed declining prices in small and medium-sized LCDs.

In contrast, Sharp sees prices for automotive and industrial automation displays as more stable because the barriers to market entry are higher due to the technological know-how that’s required. Now it needs to play for time.

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Qualcomm Has A Plethora Of Automobile Modems

Qualcomm had an IoT event in San Francisco yesterday and the company wanted to talk a bit more about IoT, also known as Internet of Things. They started off with a catchy phrase – Internet of Hype to Internet of Everything.

Dave Aberle said that up to a billion dollars in revenue is coming from the non-mobile market. More than 10 pecent of Qualcomm revenue will come from the non-headset market. They call this market Internet of Everything, but we believe that not all of that market should be called IoT.

IoT is not just the wearable market; it is car modems, connected speakers, action cameras, some smart SanDisk storage solutions, home automation kit and more.  Aberle mentioned that Qualcomm has 40 car design wins in the market with 15 different OEMs. We saw some names including Audi on the slide, but the list of obviously much longer.

Qualcomm is the leader in connected car and 4G LTE market, while Nvidia is the leader in Infotainment car systems, having some huge customers behind it, including the Volkswagen Group.

Qualcomm wants to expand its presence in IoT, including automotive solutions, and we expect more IoT designs from them in the near future.

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Will A.I. Create The Next Industrial Revolution?

Artificial Intelligence will be responsible for the next industrial revolution, experts in the field have claimed, as intelligent computer systems replace certain human-operated jobs.

Four computer science experts talked about how advances in AI could lead to a “hollowing out” of middle-income jobs during a panel debate hosted by ClickSoftware about the future of technology.

“It’s really important that we take AI seriously. It will lead to the fourth industrial revolution and will change the world in ways we cannot predict now,” said AI architect and author George Zarkadakis.

His mention of the “fourth industrial revolution” refers to the computerization of the manufacturing industry.

If the first industrial revolution was the mechanisation of production using water and steam power, followed by the second which introduced mass production with the help of electric power, then the third is what we are currently experiencing: the digital revolution and the use of electronics and IT to further automate production.

The fourth industrial revolution, which is sometimes referred to as Industry 4.0, is the vision of the ‘smart factory’, where cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions.

These cyber-physical systems communicate and cooperate with each other and humans in real time over the Internet of Things.

Dan O’Hara, professor of cognitive computing at Goldsmiths, University of London, explained that this fourth industrial revolution will not be the same kind of “hollowing out” of jobs that we saw during the last one.

“It [won’t be] manual labour replaced by automation, but it’ll be the hollowing out of middle-income jobs, medium-skilled jobs,” he said.

“The industries that will be affected the most from a replacement with automation are construction, accounts and transport. But the biggest [industry] of all, remembering this is respective to the US, is retail and sales.”

O’Hara added that many large organisations’ biggest expense is people, who already work alongside intelligent computer systems, and this area is most likely to be affected as companies look to reduce costs.

“Anything that’s working on an AI-based system is bound to be very vulnerable to the replacement by AI as it’s easily automated already,” he said.

However, while AI developments in the retail space could lead to the replacement of jobs, it is also rather promising at the same time.

Mark Bishop, professor of cognitive computing at Goldsmiths, highlighted that AI could save businesses money if it becomes smart enough to determine price variants in company spending, for example, scanning through years of an organisation’s invoice database and detecting the cheapest costs and thus saving on outgoings.

While some worry that AI will take over jobs, others have said that they will replace humans altogether.

John Lewis IT chief Paul Coby said earlier this year that the blending of AI and the IoT in the future could signal the end of civilisation as we know it.

Coby explained that the possibilities are already with us in terms of AI and that we ought to think about how “playing with the demons” could be detrimental to our future.

Apple co-founder Steve Wozniak added to previous comments from Stephen Hawking and Elon Musk with claims that “computers are going to take over from humans”.

Woz made his feelings on AI known during an interview with the Australian Financial Review, and agreed with Hawking and Musk that its potential to surpass humans is worrying.

“Computers are going to take over from humans, no question. Like people including Stephen Hawking and Elon Musk have predicted, I agree that the future is scary and very bad for people,” he said.

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Russia Banking On Home Grown CPUs

A Russian firm announced its intention to build its own homegrown CPUs as part of a cunning plan to keep the Americans from spying on the glorious Empire of Tsar Putin and oil oligarchs.

Moscow Centre of SPARC Technologies (MCST) has announced it’s now taking orders for its Russian-made microprocessors from domestic computer and server manufacturers.

Dubbed the Elbrus-4C, it was fully designed and developed in MCST’s Moscow labs. It’s claimed to be the most high-tech processor ever built in Russia. They claim it is comparable with Intel’s Core i3 and Intel Core i5 processors, although they do not say what generation as one spec we found claimed it could manage a blistering 1.3 GHz which is slightly less than an average mobile phone.

MCST unveiled a new PC, the Elbrus ARM-401 which is powered by the Elbrus-4C chip and runs its own Linux-based Elbrus operating system. MCST claimed it can run Windows and Linux distributions. Yhe company has built a data centre server rack, the Elbrus-4.4, which is powered by four Elbrus-4C microprocessors and supports up to 384GB of RAM.

MCST said the Elbrus-4.4 is suitable for web servers, database servers, storage systems, servers, remote desktops and high-performance clusters.

Sergei Viljanen, editor in chief of the Russian-language PCWorld website said that the chip was at least five years behind the west.

“Russian processor technology is still about five years behind the west. Intel’s chips come with a 14nm design, whereas the Elbrus is 65 nm, which means they have a much higher energy consumption.”

MCST’s Elbrus-4C chips are powered by a 4-core processors, and come with an interface for hard drives and other peripherals. The company finalized development of Elbrus-4C in April 2014, and began mass production last autumn.

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Chipmakers Advocating MIPS Open Source Moves

Qualcomm Atheros, Lantiq (part of Intel) and Broadcom have joined the Prpl Foundation.

For those who came in late Prple is the organisation set-up by Imagination Technologies to support open-source software on the MIPS architecture.

The big names follow CUPP Computing, Elliptic Technologies, Imperas Software, Kernkonzept and Seltech joined the foundation at lower levels.

In a statement the Foundation said that the newcomers to the prpl Foundation’s board of directors will participate at the executive level and appoint representatives to the technical steering committee and to engineering groups including the security.

So in other words the key players will be advocating an open source approach to MIPS.

Prpl, is open to other architectures, and focuses on “datacenter-to-device portable software and visualized architectures”, it said. Initial domains oem its hit list are: datacenter, networking, storage, connected consumer, embedded and IoT.

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FitBit Files IPO As Sales Double

Fitbit, the maker of wearable activity trackers, has filed to go public and has reported some strong sales numbers in its presenation.

The company seeks to raise as much as US$100 million, according to a regulatory filing, though the amount is subject to change. Fitbit plans to list its stock on the New York Stock Exchange under the symbol “FIT.”

The filing reveals what seems to be a healthy business. The company sold roughly 10.9 million devices in 2014,more than double what it sold in 2013 and more than eight times as many as it sold in 2012.

Fitbit also more than doubled its revenue between 2013 and 2014, to more than $745 million. Sales in 2012 were about $76 million.

The company posted net income of nearly $132 million in 2014, up from a loss of roughly $52 million the year before.

Meanwhile, the company’s paid active users grew from 2.6 million in 2013 to 6.7 million in 2014.

Fitbit, founded in 2007, makes a number of activity-measuring bracelets and trackers that can be synced with an online dashboard and mobile apps. The company also provides premium services like virtual coaching and customized fitness plans.

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