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Lenovo Soars

May 31, 2013 by  
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PC sales in China and high growth in smartphones sales helped boost Lenovo’s net profit for its fiscal fourth quarter by 90% year-over-year.

For the quarter ended March 31, Lenovo’s net profit was $127 million, the company said on Thursday. Revenue shattered records and was at $7.8 billion, growing 4% from the same period last year.

In Lenovo’s home market of China, the company had an operating margin of 4.9%, an increase of 8% year-over-year. The company also saw continued profitability in its mobile devices business, which makes up 9% of its overall sales. At the end of the quarter, Lenovo’s smartphone shipments were up 206% year-over-year.

Globally, PC shipments were down 13.9% year-over-year in the quarter, the market’s steepest decline since research firm IDC began tracking the market in 1994. Lenovo itself posted flat year-over-year PC shipment growth in the period.

Smartphone and tablet popularity have hurt PC sales, according to analysts. Computers running Microsoft’s Windows 8 have also failed to drum up consumer interest in the previous two quarters.

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Lenovo, however, has managed to weather the slowdown by taking advantage of the Chinese PC market, where it has an over 30% market share. Close to half of the company’s revenue comes from the country, now the world’s largest PC market.

The company is now close to surpassing leading PC vendor HP for the top spot. The company had a 15.3% share of the market in this year’s first quarter, while HP had a 15.7% share.

But the Chinese PC maker also plans to focus more of its investment on tablets, smartphones and enterprise hardware, the company’s CEO Yang Yuanqing said in a statement. Earlier this year, Lenovo also reorganized its operations to sharpen the company’s branding and compete better in high-end products.

For the current fiscal year, Lenovo aims to ship 50 million smartphones, up from 30 million last year, Yang said Thursday in an earnings call. It aims to ship 10 million tablets, a five-fold increase from the previous fiscal year.

Most of Lenovo’s smartphone sales come from China, but the company has also begun selling handsets in the emerging markets of Russia, India, Indonesia, the Philippines and Vietnam. In addition, Lenovo is preparing to bring its smartphones to the U.S. and European markets, Yang said, without saying when.

WD And Sandisk Join Forces

May 20, 2013 by  
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Western Digital and Sandisk have teamed up to create Western Digital’s first hybrid storage device that uses Sandisk’s iSSD and Western Digital’s Caviar Black hard drive.

Western Digital, which has dabbled in solid state disks (SSDs) for the enterprise market, has stayed away from hybrid drives that use relatively small SSDs to act as cache for hard drives. Now the firm has teamed with Sandisk to create its WD Black Solid State Hybrid drives with 500GB capacity.

Western Digital is pitching its hybrid drives at laptop makers, offering units with 5mm, 7mm and 9.5mm heights. The firm said Sandisk’s iSSD uses 19nm NAND flash and claimed it is the world’s “smallest and most advanced semiconductor manufacturing process”, a claim that Intel might question.

Kevin Conley, SVP and GM of client storage solutions at Sandisk said, “By combining SanDisk’s unparalleled flash memory expertise and technology with the hard drive know-how of Western Digital, WD Black SSHDs [solid state hard drives] offer outstanding hard drive-like capacity, and the slim form factor and the level of performance that you will only get with flash memory solutions.”

Seagate was first to introduce hybrid drives with its Momentus XT range, which offers an impressive performance boost over mechanical hard drives for certain workloads. The problem for Western Digital and Seagate is that hybrid drives are merely a stop-gap rather than a long term strategy, with SSD prices falling rapidly due to competition in the SSD industry as opposed to the hard drive industry, where Seagate, Western Digital and Toshiba have a comfortable ride.

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Adobe Reader Security Issue Found

May 8, 2013 by  
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McAfee has discovered a vulnerability in Adobe’s Reader program that allows people to track the usage of a PDF file.

“Recently, we detected some unusual PDF samples,” McAfee’s Haifei Li said in a blog post. “After some investigation, we successfully identified that the samples are exploiting an unpatched security issue in every version of Adobe Reader.”

The affected versions of Adobe Reader also include the latest “sandboxed” Reader XI (11.0.2).

McAfee said that the issue is not a “serious problem” because it doesn’t enable code execution, however it does permit the sender to see when and where a PDF file has been opened.

This vulnerability could only be dangerous if hackers exploited it to collect sensitive information such as IP address, internet service provider (ISP), or even the victim’s computing routine to eventually launch an advanced persistent threat (APT).

McAfee said that it is unsure who is exploiting this issue or why, but have found the PDFs to be delivered by an “email tracking service” provider.

The vulnerability works when a specific PDF JavaScript API is called with the first parameter having a UNC-located resource.

“Adobe Reader will access that UNC resource. However, this action is normally blocked and creates a warning dialog,” Li said. “The danger is that if the second parameter is provided with a special value, it changes the API’s behavior. In this situation, if the UNC resource exists, we see the warning dialog.

“However, if the UNC resource does not exist, the warning dialog will not appear even though the TCP traffic has already gone.”

McAfee said that it has reported the issue to Adobe and is waiting for their confirmation and a future patch. Adobe wasn’t immediately available for comment at the time of writing.

“In addition, our analysis suggests that more information could be collected by calling various PDF Javascript APIs. For example, the document’s location on the system could be obtained by calling the Javascript “this.path” value,” Li added.

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IBM’s Next-gen Transistors Mimick Human Brain

April 17, 2013 by  
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IBM has discovered a way to make transistors that could be turned into virtual circuitry that mimics how the human brain operates.

The new transistors would be made from strongly correlated materials, such as metal oxides, which researchers say can be used to build more powerful — but less power-hungry — computation circuitry.

“The scaling of conventional-based transistors is nearing an end, after a fantastic run of 50 years,” said Stuart Parkin, an IBM fellow at IBM Research. “We need to consider alternative devices and materials that operate entirely differently.”

Researchers have been trying to find ways of changing conductivity states in strongly correlated materials for years. Parkin’s team is the first to convert metal oxides from an insulated to conductive state by applying oxygen ions to the material. The team recently published details of the work in the journal Science.

In theory, such transistors could mimic how the human brain operates in that “liquids and currents of ions [would be used] to change materials,” Parkin said, noting that “brains can carry out computing operations a million times more efficiently than silicon-based computers.”

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3G And 4G Modems Pose Security Threats

March 25, 2013 by  
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Researchers Nikita Tarakanov and Oleg Kupreev analyzed the security of 3G/4G USB modems obtained from Russian operators for the past several months. Their findings were presented Thursday at the Black Hat Europe 2013 security conference in Amsterdam.

Most 3G/4G modems used in Russia, Europe, and probably elsewhere in the world, are made by Chinese hardware manufacturers Huawei and ZTE, and are branded with the mobile operators’ logos and trademarks, Tarakanov said. Because of this, even if the research was done primarily on Huawei modems from Russian operators, the results should be relevant in other parts of the world as well, he said.

Tarakanov said that they weren’t able to test baseband attacks against the Qualcomm chips found inside the modems because it’s illegal in Russia to operate your own GSM base station if you’re not an intelligence agency or a telecom operator. “We’ll probably have to move to another country for a few months to do it,” he said.

There’s still a lot to investigate in terms of the hardware’s security. For example, the SoC (system on a chip) used in many modems has Bluetooth capability that is disabled from the firmware, but it might be possible to enable it, the researcher said.

For now, the researchers tested the software preloaded on the modems and found multiple ways to attack it or to use it in attacks.

For one, it’s easy to make an image of the USB modem’s file system, modify it and write it on the modem again. There’s a tool available from Huawei to do modem backup and restore, but there are also free tools that support modems from other manufacturers, Tarakanov said.

Malware running on the computer could detect the model and version of the active 3G modem and could write an image with malicious customizations to it using such tools. That modem would then compromise any computer it’s used on.

The researchers also found a possible mass attack vector. Once installed on a computer, the modem application — at least the one from Huawei — checks periodically for updates from a single server, Tarakanov said. Software branded for a specific operator searchers for updates in a server directory specific to that operator.

An attacker who manages to compromise this update server, can launch mass attacks against users from many operators, Tarakanov said. Huawei 3G modems from several different Russian operators used the same server, but there might be other update servers for other countries, he said.

Research in this area is just at the beginning and there’s more to investigate, Tarakanov said. Someone has to do it because many new laptops come with 3G/4G modems directly built in and people should know if they’re a security threat.

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Is Non-Volatile Memory The Next Craze?

March 4, 2013 by  
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A report from analysts Yole Developpement claims that MRAM/STTMRAM and PCM will lead the Emerging Non-Volatile Memory (ENVM) market and earn a combined $1.6bn by 2018. If the North Koreans have not conquered America, by 2018 then MRAM/STTMRAM and PCM will surely be the top two ENVM on the market.

Yole’s Yann de Charentenay said that their combined sales will almost double each year, with double-density chips launched every two years. So far we have only had FRAM, PCM and MRAM to play with and they were available in low-density chips to only a few players. The market was quite limited and considerably smaller than the DRAM and flash markets which had combined revenues of $50bn+ in 2012, the report said. In the next five years the scalability and chip density of those memories will be greatly improved and will spark many new applications, says the report.

ENVM will greatly improve the input/output performance of enterprise storage systems whose requirements will intensify with the growing need for web-based data supported by cloud servers, the report said. Mobile phones will increase its adoption of PCM as a substitute to flash NOR memory in MCP packages thanks to 1GB chips made available by Micron in 2012, it added. The next milestone will be the higher-density chips, expected in 2015, will allow access to smart phone applications that are quickly replacing entry-level phones.

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Microsoft Raises Office Price

February 28, 2013 by  
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Microsoft has quietly increased prices of Office for the Mac as much as 17% and stopped selling multi-license packages of the application suite.

The move puts Office for Mac 2011 on the same pricing schedule as the new Office 2013 for Windows. The price increases and the disappearance of the multi-license bundles also makes Microsoft’s Office 365, a software-by-subscription deal the company has aggressively pushed, more competitive with traditional “perpetual” licenses.

It’s not clear when Microsoft raised prices. The oldest search engine cache Computerworld found with the new prices was Feb. 2, so the company boosted them before then, likely on Jan. 29, the day it launched Office 2013 and Office 365 Home Premium. Microsoft did not mention the changes to Office for Mac in its press releases that day, or otherwise publicize the move on its Mac-specific website.

The single-license Office for Mac Home & Student now costs $140, a 17% increase from the previous price of $120. Office for Mac Home & Business, an edition that adds the Outlook email client to Home & Student’s Excel, PowerPoint and Word, runs $220, or 10% higher than the older $200 price.

The new prices are identical to those of Office 2013 for Windows, as are the percentage increases.

Buyers can still find Office for Mac 2011 at the older, lower prices, however. Although Microsoft has boosted prices on its online store — as has Apple’s e-store, which also sells the suite — other retailers have not yet joined them.

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IBM Moves Into Oracle And HP Turf

February 14, 2013 by  
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Big Blue wants to take on competitors such as Oracle and Hewlett Packard by offering a cheap and cheerful Power Systems server and storage product range.

Rod Adkins, a Senior Vice President in IBM’s Systems & Technology Group said the company was was rolling out new servers based on its Power architecture with the Power Express 710 starting at $5,947. He said that the 710 is competitively priced to commodity hardware from Oracle and HP.

Adkins added that IBM is expanding its Power and Storage Systems business into SMB and growth markets. The product launches on Tuesday. IBM said it will start delivering by February 20.

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Energy Star Goes To Tablets

January 24, 2013 by  
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Coming to a tablet near you soon, Energy Star ratings.

The specification will be part of the Energy Star version 6.1, according to documents posted on the U.S. Energy Star website. But a date for ratings on tablets has not yet been established, said Robert Meyers, product manager at Energy Star computers. Energy Star is a joint effort between the U.S. Environmental Protection Agency and the U.S. Department of Energy.

The Energy Star specification helps shoppers identify the most power-efficient products when making purchases. The Energy Star program already covers laptops, desktops, monitors, light bulbs, servers, household appliances and other products that are identified with a label. The use of Energy Star-labeled products helped cut close to US$18 billion from U.S. utility bills in 2010, according to the organization.

The EPA and DOE originally floated the idea of including tablets as part of Energy Star version 6.0 for products like laptops, desktops, displays, thin clients and networking equipment, which goes into effect on June 1. Some IT vendors that participate in the Energy Star program argued against the immediate inclusion of tablets, saying that those devices are more like smartphones than PCs and have different assembly and equipment. They argued that tablets and laptops differ on components such as batteries and networking equipment, and thus cannot be grouped together with PCs. The EPA and those stakeholders are now trying to gather a consensus on the definition of tablets and how to rate the devices.

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Bonets Attack U.S. Banks

January 18, 2013 by  
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Evidence collected from a website that was recently used to flood U.S. banks with junk traffic suggests that the responsible parties behind the ongoing DDoS attack campaign against U.S. financial institutions — thought by some to be the work of Iran — are using botnets for hire.

The compromised website contained a PHP-based backdoor script that was regularly instructed to send numerous HTTP and UDP (User Datagram Protocol) requests to the websites of several U.S. banks, including PNC Bank, HSBC and Fifth Third Bank, Ronen Atias, a security analyst at Web security services provider Incapsula, said Tuesday in a blog post.

Atias described the compromised site as a “small and seemingly harmless general interest UK website” that recently signed up for Incapsula’s services.

An analysis of the site and the server logs revealed that attackers were instructing the rogue script to send junk traffic to U.S. banking sites for limited periods of time varying between seven minutes and one hour. The commands were being renewed as soon as the banking sites showed signs of recovery, Atias said.

During breaks from attacking financial websites the backdoor script was being instructed to attack unrelated commercial and e-commerce sites. “This all led us to believe that we were monitoring the activities of a Botnet for hire,” Atias said.

“The use of a Web Site as a Botnet zombie for hire did not surprise us,” the security analyst wrote. “After all, this is just a part of a growing trend we’re seeing in our DDoS prevention work.”

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