FTC Pushes For Security Standards

Despite growing resentment from companies and powerful industry groups, the Federal Trade Commission continues to insist that it wants to be the nation’s enforcer of data security standards.

The FTC, over the past years, has gone after companies that have suffered data breaches, citing the authority granted to it under a section of the FTC Act that prohibits “unfair” and “deceptive” trade practices. The FTC extracted stiff penalties from some companies by arguing that their failure to properly protect customer data represented an unfair and deceptive trade practice.

On Thursday, FTC Chairwoman Edith Ramirez called for legislation that would bestow the agency with more formal authority to go after breached entities.

“I’d like to see FTC be the enforcer,” Law360 quoted Ramirez as saying at a privacy event organized by the National Consumers League in Washington. “If you have FTC enforcement along with state concurrent jurisdiction to enforce, I think that would be an absolute benefit, and I think it’s something we’ve continued to push for.”

According to Ramirez, the FTC supports a federal data-breach notification law that would also give it the authority to penalize companies for data breaches. In separate comments at the same event, FTC counsel Betsy Broder reportedly noted that the FTC’s enforcement actions stem from the continuing failure of some companies to adequately protect data in their custody.

“FTC keeps bringing data security cases because companies keep neglecting to employ the most reasonable off-the-shelf, commonly available security measures for their systems,” Law360 quoted Broder as saying.

An FTC spokeswoman was unable to immediately confirm the comments made by Ramirez and Broder but said the sentiments expressed in the Law360 story accurately describe the FTC’s position on enforcement authority.

The comments by the senior officials come amid heightening protests against what some see as the FTC overstepping its authority by going after companies that have suffered data breaches.

Over the past several years, the agency has filed complaints against dozens of companies and extracted costly settlements from many of them for data breaches. In 2006 for instance, the FTC imposed a $10 million fine on data aggregator ChoicePoint, and more recently, online gaming company RockYou paid the agency $250,000 to settle data breach related charges.

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IBM To Become Cloud Broker

IBM is in the throes of developing software that will allow organizations to use multiple cloud storage services interchangeably, reducing dependence on any single cloud vendor and ensuring that data remains available even during service outages.

Although the software, called InterCloud Storage (ICStore), is still in development, IBM is inviting its customers to test it. Over time, the company will fold the software into its enterprise storage portfolio, where it can back up data to the cloud. The current test iteration requires an IBM Storewize storage system to operate.

ICStore was developed in response to customer inquiries, said Thomas Weigold, who leads the IBM storage systems research team in IBM’s Zurich, Switzerland, research facility, where the software was created. Customers are interested in cloud storage services but are worried about trusting data with third party providers, both in terms of security and the reliability of the service, he said.

The software provides a single interface that administrators can use to spread data across multiple cloud vendors. Administrators can specify which cloud providers to use through a point-and-click interface. Both file and block storage is supported, though not object storage. The software contains mechanisms for encrypting data so that it remains secure as it crosses the network and resides on the external storage services.

A number of software vendors offer similar cloud storage broker capabilities, all in various stages of completion, notably Red Hat’s DeltaCloud and Hewlett Packard’s Public Cloud.

ICStore is more “flexible,” than other approaches, said Alessandro Sorniotti, an IBM security and cloud system researcher who also worked on the project. “We give customers the ability to select what goes where, depending on the sensitivity and relevance of data,” he said. Customers can store one copy of their data on one provider and a backup copy on another provider.

ICStore supports a number of cloud storage providers, including IBM’s SoftLayer, Amazon S3 (Simple Storage Service), Rackspace, Microsoft Windows Azure and private instances of the OpenStack Swift storage service. More storage providers will be added as the software goes into production mode.

“Say, you are using SoftLayer and Amazon, and if Amazon suffers an outage, then the backup cloud provider kicks in and allows you to retrieve data,” from SoftLayer, Sorniotti said.

ICStore will also allow multiple copies of the software to work together within an enterprise, using a set of IBM patent-pending algorithms developed for data sharing. This ensures that the organization will not run into any upper limits on how much data can be stored.

IBM has about 1,400 patents that relate to cloud computing, according to the company.

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HP Retakes Server Lead

Hewlett-Packard reclaimed its server crown from IBM last quarter as the overall market contracted and Taiwanese vendors made big gains selling directly to Internet giants like Google and Facebook, according to an IDC report.

HP expanded its share of the market only modestly from a year earlier but IBM’s portion declined 4.5 points despite solid mainframe sales, to leave HP in the top spot. HP finished the third quarter with 28.1% of worldwide server revenue to IBM’s 23.4%, IDC said.

But the strongest growth was for the “ODM direct” segment which IDC broke out for the first time this quarter. It stands for original design manufacturers, which are Taiwanese firms like Quanta Computer, Wistron Group, Inventec and Compal, which sell partial and fully-built servers to the big cloud providers.

It’s a growing segment and one that threatens the incumbents. ODM’s accounted for 6.5% of server revenue last quarter, up 45.2% from a year earlier, IDC said. If the ODM category were a single vendor, it would be the third largest ahead of Dell.

Almost 80% of the ODM’s server revenue came from the U.S., primarily from sales to Google, Amazon, Facebook and Rackspace.

Overall, the server market declined 3.7% from a year earlier to $12.1 billion. It was the third consecutive quarter of declining revenue but IDC predicts improvement with a refresh cycle early next year. In terms of units shipped, volumes were about flat year over year, meaning average selling prices dropped.

Volume systems — mostly x86 servers — picked up slightly from last year, with 3.5% revenue growth. But sales of midrange and high-end systems dropped 17.8% and 22.5%, respectively, IDC said.

IBM fared worst of the top 5 vendors, with revenue down 19.4% due to “soft demand for System x and Power Systems,” IDC said. Dell retained third place with 16.2% of revenue, about flat from last year, while Cisco Systems and Oracle tied for fourth.

Cisco saw the most growth of the top vendors, with a nearly 43% revenue jump, IDC said.

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Will Computer Obtain Common Sense?

Even though it may appear PCs are getting dumbed down as we see constant images of cats playing the piano or dogs playing in the snow, one computer is doing the same and getting smarter and smarter.

A computer cluster running the so-called the Never Ending Image Learner at Carnegie Mellon University runs 24 hours a day, 7 days a week searching the Internet for images, studying them on its own and building a visual database. The process, scientists say, is giving the computer an increasing amount of common sense.

“Images are the best way to learn visual properties,” said Abhinav Gupta, assistant research professor in Carnegie Mellon’s Robotics Institute. “Images also include a lot of common sense information about the world. People learn this by themselves and, with [this program], we hope that computers will do so as well.”

The computers have been running the program since late July, analyzing some three million images. The system has identified 1,500 types of objects in half a million images and 1,200 types of scenes in hundreds of thousands of images, according to the university.

The program has connected the dots to learn 2,500 associations from thousands of instances.

Thanks to advances in computer vision that enable software to identify and label objects found in images and recognize colors, materials and positioning, the Carnegie Mellon cluster is better understanding the visual world with each image it analyzes.

The program also is set up to enable a computer to make common sense associations, like buildings are vertical instead of lying on their sides, people eat food, and cars are found on roads. All the things that people take for granted, the computers now are learning without being told.

“People don’t always know how or what to teach computers,” said Abhinav Shrivastava, a robotics Ph.D. student at CMU and a lead researcher on the program. “But humans are good at telling computers when they are wrong.”

He noted, for instance, that a human might need to tell the computer that pink isn’t just the name of a singer but also is the name of a color.

While previous computer scientists have tried to “teach” computers about different real-world associations, compiling structured data for them, the job has always been far too vast to tackle successfully. CMU noted that Facebook alone has more than 200 billion images.

The only way for computers to scan enough images to understand the visual world is to let them do it on their own.

“What we have learned in the last five to 10 years of computer vision research is that the more data you have, the better computer vision becomes,” Gupta said.

CMU’s computer learning program is supported by Google and the Office of Naval Research.

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Is Intel Expanding?

Even if it means that it will be the first to make ARM’s 64-bit chips, Intel said that it wants to expand its contract foundry work. Intel CEO Brian Krzanich said he would expand his company’s small contract manufacturing business, paving the way for more chipmakers to tap into the world’s most advanced process technology.

Krzanich told analysts that he planned to step up the company’s foundry work, effectively giving Intel’s process technology to its rivals. He said that company’s who can use Intel’s leading edge and build computing capabilities that are better than anyone else’s, are good candidates for foundry service. Krzanich added that the slumping personal computer industry, Intel’s core market, was showing signs of bottoming out.

Intel also unveiled two upcoming mobile chips from its Atom line designed interchange features to create different versions of the component. A high-end version of the new chip, code named Broxton, and is due out in mid-2015. SoFIA, a low-end chip was shown as an example of Intel’s pragmatism and willingness to change how it does business. Krzanich said that in the interest of speed, SoFIA would be manufactured outside of Intel, with the goal of bringing it to market next year.

Intel will move production of SoFIA chips to its own 14 nanometer manufacturing lines, Krzanich added.

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Intel Buys KNO Software

Intel has acquired educational software developer Kno to add to its Education division.

Speaking in the company blog, Intel Sales and Marketing Group VP John Galvin explained that in a world where kids are being bombarded by technology, Intel Education has a mission to support the rollout of technology in the classroom.

Galvin said, “The Kno platform provides administrators and teachers with the tools they need to easily assign, manage and monitor their digital learning content and assessments.”

This acquisition brings Intel’s global digital content library to over 225,000 [higher education] and K-12 titles from 74 education publishers. “We’re looking forward to combining our expertise with Kno’s rich content so that together, we can help teachers create classroom environments and personalized learning experiences that lead to student success,” Galvin added.

Intel Education has been working for the past decade with over 10 million teachers that it has assisted to integrate technology with education.

In the UK alone there have been tremendous strides in educational software over the past 30 years, dating back to the government pledge to provide a computer in every school, which led to the creation of the BBC Microcomputer designed specifically for that purpose.

Today, not only is ICT a dedicated lesson in its own right, but it forms one of the key skills that educators are expected to incorporate into all lesson plans, putting it on a par with English and Maths, showing just how far we’ve come from making Venn diagrams with ascii art.

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Can Acer Go High-End?

Most popular for its low-cost laptops, Acer doesn’t really inspire thoughts of premium products. But building high-end hardware could be the Taiwanese vendor’s best chance as it looks for a way to rescue its struggling business.

With consumers flocking to tablets and smartphones, Acer’s once-thriving PC business has been left in the dust. Quarterly financial losses have become routine at the company and its PC shipments declined more sharply in the past year than at any other major vendor, according to IDC.

The grim situation forced CEO J.T. Wang to resign from his post last Tuesday. Acer will also cut 7 percent of its global workforce and has assembled an advisory committee to come up with a new strategy, the company announced.

Bright spots are hard to find. The Wintel model that propelled Acer for years and helped it become the second-largest PC vendor in 2009 has been falling apart amid the demand for mobile gadgets. And Windows 8 and Intel’s Ultrabook strategy have failed to resuscitate the market.

It hasn’t helped that Acer is so reliant on sales to consumers, said IDC analyst Bryan Ma. The entire PC industry has been hurt by tablets, but Dell and Hewlett-Packard have at least managed to find cover selling PCs to businesses, which are still buying them. And Lenovo has capitalized on its position in China, now the world’s largest PC market.

“Acer didn’t really have the commercial PC business to protect themselves. That’s why they were hit harder,” Ma said.

Acer — whether to its benefit or detriment — has instead gained a reputation for low-priced PCs. Even in tablets it has tried to undercut rivals — its Iconia W4, an 8-inch Windows 8.1 tablet, starts at US$329.99, while its Iconia B Android tablet goes for $129.99. The low prices have helped keep the company on consumers’ radar, but at the expense of profits.

One option for Acer is to build a brand as a higher-end PC player. It took a step in that direction last year with the Aspire S7, a Windows laptop with a slender, aluminum chassis that sells for $1,200 and up. That product and its successors have had some success for the company, with sales of 2,000 to 3,000 units per month, said James Wang, an analyst with research firm Canalys.

“I think Acer has started to learn they are able to sell some expensive products,” he said.

Selling higher-end PCs could help stop the bleeding in Acer’s finances, but with the overall PC market still shrinking it’s unlikely to help it expand in any meaningful way. “You can’t really expect vendors in desktops and notebooks to find growth,” Wang said. “You win in the market by not falling in shipments.”

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Google Expands Malware Blocker

Google has expanded malware blocking in an early development build of Chrome to sniff out a wider range of threats than the browser already recognizes.

Chrome’s current “Canary” build — the label for very-early versions of the browser, earlier than even Chrome’s Dev channel — will post a warning at the bottom of the window when it detects an attempted download of malicious code.

Features added to the Canary build usually, although not always, eventually make it into the Dev channel — the roughest-edged of the three distributed to users — and from there into the Beta and Stable channels. Google did not spell out a timetable for the expanded malware blocking.

Chrome has included malware blocking for more than two years, since version 12 launched in June 2011, and the functionality was extended in February 2012with Chrome 17.

Chrome is now at version 30.

Canary’s blocking, however, is more aggressive on two fronts: It is more assertive in its alerts and detects more malware forms, including threats that pose as legitimate software and monkey with the browser’s settings.

“Content.exe is malicious, and Chrome has blocked it,” the message in Canary reads. The sole visible option is to click the “Dismiss” button, which makes the warning vanish. The only additional option, and that only after another click, is to “Learn more,” which leads to yet another warning.

In Canary, there is no way for the user to contradict the malware blocking.

That’s different than in the current Stable build of Chrome, which relies on a message that says, “This file is malicious. Are you sure you want to continue?” and gives the user a choice between tossing the downloaded file or saving it anyway.

As it has for some time, Chrome will show such warnings on select file extensions, primarily “.exe,” which in Windows denotes an executable file, and “.msi,” an installation package for Windows applications. Canary’s expansion, said Google, also warns when the user tries to download some less obvious threats, including payloads masquerading as legitimate software — it cited screen savers and video plug-ins in a  blog posting — that hijack browser settings to silently change the home page or insert ads into websites to monetize the malware.

Google’s malware blocking is part of its Safe Browsing API (application programming interface) and service, which Chrome, Apple’s Safari and Mozilla’s Firefox all access to warn customers of potentially dangerous websites before they reach them.

In Chrome’s case, the malware warning stems not only from the Safe Browsing “blacklist” of dodgy websites, but according to NSS Labs, a security software testing company, also from the Content Agnostic Malware Protection (CAMP) technology that Google has baked into its implementation of Safe Browsing.

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SalesForce Goes Hacking

Salesforce.com really wants to attract lots of developers to its Dreamforce conference next month in San Francisco. As in, really.

Last Friday, the cloud software vendor announced a “hackathon” would be held at the conference, with US$1 million going to the developer or team who creates the top prize-winning mobile application with Salesforce.com technology.

“It’s not going to be easy — $1 million is going to bring out the best of the best,” Salesforce.com said in Friday’s announcement. “So don’t wait until Dreamforce! You’re going to want to get started now. With Force.com, Heroku, ExactTarget Fuel, Mobile Services and more — you’ve got a killer array of platform technology to use.”

Salesforce.com will also be providing some “pretty amazing new technology” for use at the show, the announcement adds.

In order to participate, developers have to either register for a full conference pass or a special $99 hacker pass.

The hackathon reflects Salesforce.com’s long courtship of developers to its development technologies, its AppExchange marketplace and recent efforts to build out more tooling for mobile application development.

Developers taking part in the hackathon will have plenty of competition, with some 20,000 programmers expected to attend Dreamforce overall. A “Hack Central” area will be open around the clock, supporting coders who want to work until the wee hours on their application.

In order to qualify, an application can’t have been previously released. The entries will be judged on four criteria counting 25 percent each: innovation, business value, user experience and use of Salesforce.com’s platform.

The second-place finisher will receive $50,000, with $25,000 going to the third-place winner. Fourth and fifth place will get $10,000 and $5,000, respectively.

Some 120,000 people are expected to register for Dreamforce this year. While some of that total will be watching online rather than in person, Dreamforce is now operating at a scale rivaling Oracle’s OpenWorld event, which happened last month.

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Is Lenovo Eyeing Blackberry?

Lenovo reportedly has joined the list of possible Blackberry buyers, with the firm reportedly having approached the struggling Canadian phone maker.

The Wall Street Journal reported that Lenovo, despite previously denying that it was mulling a Blackberry buy (paywalled), has been given the thumbs up to cast an eye over the Canadian company’s books before making it a possible offer.

If reports are to be believed, Lenovo has joined a list of possible buyers that includes Intel, Cisco, SAP, Google, Samsung and LG.

Specific details of Lenovo’s possible acquisition are yet to be revealed, but as a newcomer to the smartphone market Lenovo recently admitted that it is selling more smartphones than tablets and PCs in China, despite being one of the only PC makers to continue showing sales growth.

However, Lenovo’s smartphone portfolio is yet to appear the UK, and the firm hasn’t seen much success outside China. However, picking up Blackberry could help Lenovo enter the global smartphone market, and the firm could be looking to take over from Blackberry as a phone maker focused on business professionals.

Lenovo might have a hard time closing a buyout deal for Blackberry, though. Rumours about a takeover have already led to speculation that such a buyout would struggle to get approval from the US and Canada, due to the company’s Chinese ownership and the fact that Blackberry does business with sensitive parts of both governments.

Blackberry didn’t comment on a possible Lenovo buyout, but instead put out its usual vague statement. A company spokesperson said, “The special committee, with the assistance of Blackberry’s independent financial and legal advisors, is conducting a robust and thorough review of strategic alternatives.”

Lenovo declined to comment on the report.

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