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U.S. Cloud Vendors Hurt By NSA
Edward Snowden’s public unveiling of the National Security Agency’s Prism surveillance program could cause U.S. providers of cloud-based services to lose 10% to 20% of the foreign market — a slice of business valued at up to $35 billion.
A new report from the Information Technology & Innovation Foundation (ITIF) concludes that European cloud computing companies, in particular, might successfully exploit users’ fears about the secret data collection program to challenge U.S. leadership in the hosted services business.
Daniel Castro, author of the report, acknowledges that the conclusions are based, so far, on thin data, but nonetheless argues that the risks to U.S. cloud vendors are real.
Indeed, a month prior, the Cloud Security Alliance reported that in a survey of 207 officials of non-U.S. companies, 10% of the respondents said that they had canceled contracts with U.S. service providers after Snowden’s leak of NSA Prism documents earlier this year.
“If U.S. companies lose market share in the short term, it will have long-term implications on their competitive advantage in this new industry,” said Castro in the ITIF report. “Rival countries have noted this opportunity and will try to exploit it.”
To counter such efforts, the U.S. must challenge overstated claims about the program by foreign companies and governments, said Jason Weinstein, a partner in the Washington office of law firm Steptoe & Johnson and a former federal prosecutor and deputy assistant attorney general specializing in computer crime.
“There are a lot of reasons to be concerned about just how significant those consequences will be,” Weinstein said. “The effort by European governments and European cloud providers to cloud the truth about data protection in the U.S. was going on well before anyone knew who Edward Snowden was. It just picked up new momentum once the Prism disclosures came out.”
Weinstein contends that European countries have fewer data protection rules than the U.S.
For example, he said that in the U.K. and France, a wiretap to get content can be issued by a government official without court authority, but that can’t happen in the U.S.
“U.S. providers have done nothing other than comply with their legal obligations,” he said. But because of Snowden’s leaks, “they are facing potentially significant economic consequences.”
Gartner analyst Ed Anderson said his firm has yet to see any revenue impact on cloud providers since the Prism disclosures, but added, “I don’t think Prism does U.S. providers any favors, that’s for sure.”
Nonetheless, Anderson added, “I think the reality is [the controversy] is likely to die down over time, and we expect adoption to probably continue on the path that it has been on.”
One reason why U.S. providers may not suffer is because “the alternatives aren’t great if you are a European company looking for a cloud service,” he said.
Yahoo Still Playing Pac-Man
July 16, 2013 by admin
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Yahoo announced on Wednesday that it bought Qwiki for an undisclosed sum, as the firm’s spending spree continues.
Qwiki started out as a video focused search engine in 2011, before making its way into the iTunes Store as an app that turns images and videos into digital story boards.
Yahoo announced its acquisition of Qwiki on Wednesday, although it kept quiet about what it plans to do with the company and how much it spent. However, according to Allthingsd, Yahoo spent approximately $50m to further expand its digital offerings.
What’s more, while it’s unclear what Yahoo’s plans are at present, it’s likely that the firm is looking to challenge Vine and Instagram in the social video market.
Yahoo announced the news, naturally, on Tumblr. It said, “We’re excited to announce that Yahoo acquired Qwiki – a company that uses awesome technology to bring together pictures, music and video to capture the art of storytelling.
“We will continue to support the Qwiki app, and the team will join Yahoo in our New York city office to reimagine Yahoo’s storytelling experience. Stay tuned … there’s much more to come!”
Qwiki also had something to say, posting on its website, “Thank you for being a part of our story – one which is far from over. The Qwiki app will live on as a standalone entity inside Yahoo, where we will grow our thriving community and where our team will continue to work to help you share life’s best experiences.
“We are proud of the work we’ve done, and humbled by unwavering support from the NY tech community. New York is such a big part of who we are, and what we will become.”
Yahoo’s buyout of Qwiki is the latest in a series of acquisitions by the firm. Recently the firm announced that it bought Tumblr for a cool $1.1bn, with Yahoo CEO Marissa Mayer promising “not to screw it up”.
Yahoo On A Buying Spree
Yahoo has purchased a mobile gaming company, Loki Studios, taking its total acquisitions this month to four.
The company said over the weekend it welcomed Loki, Astrid, GoPollGo and MileWise to its growing mobile team. “We recently added 22 entrepreneurs to our growing mobile team,” the company said in a Twitter message in a possible reference to some of the people from the four companies who have moved to Yahoo.
Loki’s flagship application is its location-aware game, Geomon. “We are thrilled to be joining the exceptional folks at Yahoo!. We believe fully in their commitment to creating outstanding mobile products,” the Loki team said on their website.
Earlier in the week, Yahoo also acquired GoPollGo, a social polling tool. The company’s founder and team said they were moving to Yahoo, and would no longer be supporting their offerings.
It is not clear whether Yahoo has bought all these companies for their products and technology or just to get their experienced staff in the area of mobile as it tries to build up its own mobile capabilities. The way the services are being shut down suggests that their user base did not particularly interest Yahoo. The company could not be immediately reached for comment.
Xerox Moving Into IT Services
Printer and copier maker Xerox Corp forecast current-quarter earnings below estimates as it quickens efforts to transform itself into a technology services provider.
Xerox, whose shares were little changed at midday, also offers services such as managing toll systems and healthcare programs to counter sluggish growth in its printers and copiers business, which accounts for about 40 percent of its revenue.
Services is now the larger part of the company’s business and lower margins in IT and business process outsourcing is dragging overall margins.
The company said it expects second-quarter revenue from its document technology business, which includes printers and copiers, to decline in the mid-single digits. Revenue fell 9 percent to $2.14 billion in the business in the first quarter.
Based in Norwalk, Connecticut, Xerox moved into business services with its purchase of Affiliated Computer Services Inc (ACS) for $5.5 billion in 2009 – the company’s biggest deal in its 106-year history.
Xerox said it plans to quicken the pace of a restructuring plan kicked off in the last quarter of 2012 and included a 2-cent restructuring charge in its second-quarter forecast.
Xerox said it expects flattish revenue for the full year, compared with previous expectations of up to a 2 percent growth, it said on a conference call with analysts.
The company said it was on track to reach its target of adjusted EPS of $1.09 to $1.15 for the full year and to generate operating cash flow of $2.1 billion to $2.4 billion.
“Europe remains weak. US remains stable, but weak. We have not seen a pickup in the US,” Xerox CEO Ursula Burns said on a conference call with analysts.
“We did see a slowdown, a bit of a slowdown, in some developing market economies. But our business model is fairly resilient in the developing markets,” she said.
AT&T Gets GM
March 5, 2013 by admin
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AT&T Monday said it will provide LTE wireless services to most General Motors automobiles starting in 2014 in the U.S. and Canada.
A multi-year agreement between AT&T and GM subsidiary OnStar calls for vehicles to continue getting OnStar’s safety and security services while adding information and entertainment services for backseat drivers, AT&T said.
Millions of vehicles will be affected, as AT&T rolls out LTE to reach 300 million people in the U.S. by the end of 2014.
The AT&T-GM announcement is part of an explosion in the number of devices connected to the Internet, many of them wirelessly, in what some have termed the “Internet of Things.”
“The is a big announcement for connected devices,” Glenn Lurie, president of emerging enterprises and partnerships at AT&T, said in an interview at Mobile World Congress here.
FTC Defends Google Decision
January 25, 2013 by admin
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The FTC defended its decision to let Google carry on with its anti-trust-like antics, while other regulations in civilized nations are planning to put the boot in.
The US Federal Trade Commission reached a settlement with Google which really did little to stop the company using its dominance to push down search results from its competitors. The move attracted considerable criticism because it followed a letter from US senators to go easy on the search engine because it was good for US jobs. We guess they mean the jobs of US senators who Google paid campaign contributions.
Google promised to change the ways it presents some search results and runs search advertising, but was exonerated of the results bias claims. Rivals including Yelp and Microsoft claimed that Google had favored its own product results over those of its competitors and called for the anti-trust case. What makes the case look more suspect is that the EU is less frightened of actually fining Google or forcing it to behave. Indeed indications from Brussels are that it has not only agreed with the rival’s complaints but will do something about it if Google does not pull finger.
But FTC chairman Jon Leibowitz told Talking Points Memo that the agency’s decision was legally sound and would be beneficial to competition and consumers. Under facts we found, all five of us, from liberal Democrat to conservative Republican, agreed that the evidence militated against an anti-trust case,” Leibowitz told TPM.
The fact that we managed to have both Google and Google’s rivals unhappy, in an odd way that’s maybe unique to Washington, that puts us in the right place substantively, he claimed. When asked if Google’s $25 million lobbying budget for the duration FTC’s investigation helped, he said that lobbying makes the companies feel good and lobbyists feel good.
“At the end of the day, whether you want to say lobbying had any influence, or cancelled itself out because there was lobbying on both sides, if you’re going to do what lobbyists want you to do in a regulatory agency, you’re not doing your job.”
Google Sells A Piece Of Motorola
December 31, 2012 by admin
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Google plans to unload the TV set-top box business of its Motorola Mobility subsidiary to Arris Group, a broadband device vendor, for $2.35 billion.
Arris will also receive patents belonging to the business, called Motorola Home, and will get a perpetual license to other Motorola Mobility patents as part of the deal. The companies announced their agreement late on Wednesday and expect the sale to close by the second quarter of next year.
Google acquired Motorola Mobility in a closely examined deal that concluded in May. It bought the business primarily for its mobile assets and proceeded to seek a buyer for its Motorola Home division, which primarily makes set-top boxes for bringing video and other broadband services to TVs. Motorola Home had revenue of $3.4 billion in the year ending Sept. 30.
Despite the growth of Internet-based video services, Arris sees growth ahead in the set-top box business. The combined companies will have more than 500 customers in 70 countries, according to a press release.
“Every operator that we’ve talked to tells me that in-home devices are not going to go away,” Arris Chairman and CEO Bob Stanzione said on a conference call to discuss the deal. He sees a new generation of the boxes that will carry both traditional and IP (Internet Protocol) video services going into homes soon.
Oracle And Nokia Make A Deal
October 10, 2012 by admin
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Nokia Oyj has agreed to grant Oracle Corp’s customers access to its mapping products, as the wireless phone company attempts to expand its location services business.
The Finnish company, which bought the world’s largest digital mapping firm, Navteq, in 2008, has been looking for ways to boost the business
and recently signed mapping deals with Groupon Inc and Amazon.Com Inc.
In stark contrast with Nokia’s troubled mobile phone operation, sales at the location business grew last quarter, though it still generates only 4 percent of group revenue.
Oracle has developed a link between its own software and the Nokia Location Platform software, Nokia said on Monday. This enables the U.S. company’s business users to access the mapping services through its products.
Financial details of the deal were not disclosed, but Nokia said Oracle users would license Location Platform from Nokia for use in Oracle applications.
“Nokia has been on a mission for the last 18 months to sign mapping and location deals with large internet players. The deal with Oracle extends this,” CCS Insight analyst Martin Garner said.
Last week Apple publicly apologized after customer complaints about errors in its maps, which have been put on its latest phone operating system instead of Google Inc’s mapping service.
Microsoft Gives Money To Hackers
Microsoft has given out more than $250,000 in prize money to Black Hat hackers who found ways to protect its software. Redmond’s first Blue Hat prize were unveiled at a hip club at a mobbed party complete with dancers, high-energy DJ, and explosions of shimmering confetti.
The top prize of $200,000 went to doctoral student Vasilis Pappas. Pappas came up with a method to countering “the most popular attack technique” that Redmond is seeing at the moment. This is called Return-Oriented Programming which is a hacker technique that is often used to disable or circumvent a program’s computer security controls. Pappas came up with something called kBouncer which blocks anything that looks like an ROP attack from running.
Microsoft security response center senior director Mike Reavey said that Redmond posed a challenge to the researcher community and asked them to shift their focus from solely identifying and reporting individual vulnerabilities to investing in new lines of defensive research that could mitigate entire classes of attacks.
Dell’s Cloud Plans Falls Behind Schedule
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Dell announced an aggressive schedule last year to roll out cloud-based application services, but it appears that the schedule was a little too aggressive.
Dell said last August that it planned to launch an online analytics service in the first half of this year for small and midsized businesses, but that service isn’t due now until early next year, a Dell executive said.
“Like a lot of development projects, it can take a bit longer than you think,” Paulette Altmaier, general manager of Dell’s Cloud Business Applications group, said in an interview Thursday.
Dell also said it would launch a platform-as-a-service offering this year based on Microsoft’s Azure platform. On Friday, a Dell spokeswoman said the company no longer has a delivery date for that service.
The delays are a setback for Dell, which is trying to reduce its dependence on PCs and build more profitable businesses in services and software. But a lot of companies are moving slowly to the cloud, so the hold-up isn’t a disaster, said Peter Ffoulkes, an industry analyst with 451 Research Group.
“The move to the cloud is not a fast journey and for most people it is still largely a future. I would not expect a quarter or two to make a big difference in practical terms,” he said.
Dell has also made a string of software acquisitions in the past year that might be causing it to rethink its software-as-a-service strategy. It updated press and analysts on its software plans Thursday.
When it does arrive, the analytics service will offer “cross-app” analytics, meaning customers will be able to import data from one or more applications to a data warehouse that Dell will host for them online, and then perform analysis on that data.