Amazon, Microsoft Cut Cloud Storage Prices

Last April, Microsoft agreed that it would match Amazon’s Web Services’ (AWS’) prices for compute, storage and bandwidth.

So when Amazon announced last Thursday  that it would cut its S3 (Simple Storage Service) and Elastic Block Store (EBS) prices by up to 22%, Microsoft followed suit the very next day.

“We are matching AWS’ lowest prices (US East Region) for S3 and EBS, reducing prices by up to 20% and making the lower prices available in all regions worldwide,” Microsoft posted in its official blog.

For Microsoft’s “Locally Redundant Disks/Page Blobs Storage,” the company is reducing prices by up to 28%. It is also reducing the price of Azure Storage service by 50%.

Amazon’s new prices take effect Feb. 1. Microsoft’s price cuts begin March 13.

“We’re also making the new prices effective worldwide, which means that Azure storage will be less expensive than AWS in many regions,” Microsoft said.

Amazon said it dropped its prices for its S3 storage by 22% and its EBS standard volume storage and I/O operations by up to 50%.

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Qualcomm Acquires Patents From HP

Chip making giant Qualcomm Inc has purchased a patent portfolio from Hewlett-Packard Co, including those of Palm Inc and its iPaq smartphone, in a move that will bulk up HP’s offerings to handset makers and other licensees.

The portfolio comprises about 1,400 granted patents and pending patent applications from the United States and about 1,000 granted patents and pending patent applications from other countries, including China, England, Germany, Japan and South Korea.

The San Diego-based chipmaker did not say how much it paid for the patents.

The majority of Qualcomm’s profits come from licensing patents for its ubiquitous CDMA cellphone technology and other technology related to mobile devices. Instead of licensing patents individually, handset vendors, carriers and other licensees pay royalties to Qualcomm in return for access to a broad portfolio of intellectual property.

The patents bought from HP, announced in a release on Thursday, cover technologies that include fundamental mobile operating system techniques.

They include those that HP acquired when it bought Palm Inc, an early player in mobile devices, in 2010 and Bitfone in 2006. HP tablets made using Palm’s webOS operating system failed to catch on.

“There’s nothing left at Palm that HP could get any use out of so it’s better to sell the patents, which are always valuable to Qualcomm,” said Ed Snyder, an analyst with Charter Equity Research. “They have to keep that bucket full.”

The new patents will not lead to increased royalty rates for existing Qualcomm licensees, a Qualcomm spokeswoman said.

Last year, HP sold webOS, which it received as part of the $1.2 billion Palm acquisition, to South Korea’s LG Electronics Inc.

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ZTE Attempts To Double Marketshare

China’s ZTE Corp, the world’s seventh-largest smartphone maker, wants to nearly double its U.S. market share in the next three years by increasing spending on marketing.

ZTE, which trails nearby rival Huawei Technologies Co Ltd in selling both smartphones and telecoms equipment, wants more share of the fat profit margins promised by sales of high-end phones in the United States.

But the company needs to first work on its image. Its mainstay telecom equipment business was essentially shut out of the U.S. and other markets after government officials flagged security concerns about Chinese-made equipment.

ZTE targets a U.S. market share of 10 percent by 2017 from 6 percent in 2013, Lv Qianhao, global marketing director of mobile devices, told Reuters at a company event on Thursday.

That would place it a distant third behind Apple Inc with 41 percent and Samsung Electronics Co Ltd with 26 percent, according to September-November data from researcher comScore.

To that end, ZTE will increase its U.S. marketing budget by at least 120 percent this year from last, Lv said without elaborating. Like other Chinese handset makers, ZTE is grappling with low brand awareness in the world’s second-largest smartphone market and perceptions of inferior quality.

Samsung Electronics, which earns around two-thirds of its operating profit from its mobile division, spent $597 million on marketing in the United States in 2012, according to researcher AdAge.

Last year, ZTE signed a deal with the Houston Rockets basketball team and released a Rockets-branded phone.

“We want young U.S. consumers to participate in our marketing activities, so we will have more NBA (National Basketball Association) stores and channels that sell our products,” Lv said.

Globally, ZTE aims to ship around 60 million smartphones this year compared with about 40 million smartphones last year, said Senior Vice President Zhang Renjun.

The company sees much of that growth in developed markets – including Russia and China- which accounted for 68 percent of mobile device revenue last year compared with 35 percent in 2007, said Lv.

ZTE’s mobile device business sells feature phones as well as smartphones. It was the fifth-biggest mobile phone vendor in July-September, according to researcher Gartner, though it fell out of the top five smartphone sellers list in the same period.

ZTE expects to have swung to a profit for last year having booked its first-ever loss as a public company in 2012.

It based its turnaround on cutting costs, signing fewer low-margin contracts, and winning contracts to build fourth generation telecommunication networks.

The company expects global investment in 4G to reach $100 billion this year, Zhang said.

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Tesla Updates Charging Software

Tesla Motors Inc is making changes to prevent overheating of its charging systems, including giving customers upgraded wall adapters and providing charging-software upgrades, the electric-car company said on Friday.

The moves come after a November garage fire involving a Model S in Irvine, California, which the Orange County Fire Authority said may have been caused by a Tesla charging system or by a connection at the electricity panel on the wall of the garage.

At the time, Tesla disagreed with the fire officials’ findings, denying that the charging electronics were related to the fire. A Tesla spokeswoman did not immediately respond to a question on Friday about whether the upgrades were related to the Irvine fire.

In a Friday press release, Tesla said that its goal was to prevent excessive heating of the adapters used to charge its cars. A variety of factors ranging from corrosion to inappropriate wiring of electrical outlets can cause overheating, the company said.

A December tweak to its charging software tackles the issue through reducing charging by 25 percent if the charging system detects fluctuations in power entering the vehicle, Tesla said.

“Tesla believes that this software update fully addresses any potential risks,” the release said. But as a precaution, it said it would make available an improved wall adapter with a thermal fuse for affected customers, staring in a few weeks.

Separately, three road fires in Model S sedans caused Tesla’s stock to fall sharply in October.

The fires occurred in Washington state, Tennessee and Mexico. In the U.S. incidents, Model S sedans caught fire after running over road debris. In Mexico, a Model S caught fire after striking a concrete wall.

On Friday, Tesla’s stock fell 1.23 percent to $145.72, up from levels under $120 in late November but down from its high of $194.50 in late September.

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NSA Developing System To Crack Encryption

The U.S. National Security Agency is working to develop a computer that could ultimately break most encryption programs, whether they are used to protect other nations’ spying programs or consumers’ bank accounts, according to a report by the Washington Post.

The report, which the newspaper said was based on documents leaked by former NSA contractor Edward Snowden, comes amid continuing controversy over the spy agency’s program to collect the phone records Internet communications of private citizens.

In its report, The Washington Post said that the NSA is trying to develop a so-called “quantum computer” that could be used to break encryption codes used to cloak sensitive information.

Such a computer, which would be able to perform several calculations at once instead of in a single stream, could take years to develop, the newspaper said. In addition to being able to break through the cloaks meant to protect private data, such a computer would have implications for such fields as medicine, the newspaper reported.

The research is part of a $79.7 million research program called “Penetrating Hard Targets,” the newspaper said. Other, non-governmental researchers are also trying to develop quantum computers, and it is not clear whether the NSA program lags the private efforts or is ahead of them.

Snowden, living in Russia with temporary asylum, last year leaked documents he collected while working for the NSA. The United States has charged him with espionage, and more charges could follow.

His disclosures have sparked a debate over how much leeway to give the U.S. government in gathering information to protect Americans from terrorism, and have prompted numerous lawsuits.

Last week, a federal judge ruled that the NSA’s collection of phone call records is lawful, while another judge earlier in December questioned the program’s constitutionality. The issue is now more likely to move before the U.S. Supreme Court.

On Thursday, the editorial board of the New York Times said that the U.S. government should grant Snowden clemency or a plea bargain, given the public value of revelations over the National Security Agency’s vast spying programs.

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Will Businesses Accept The Chromebook?

Sales of Chromebooks enjoyed rapid growth,going from basically nothing in 2012 to more than 20 percent of the U.S. commercial PC market, analyst firm NPD reported, while Windows PCs and Macs remained flat at best.

NPD estimated that, throughout all of 2013, 14.4 million desktops, notebooks, and tablets were sold through U.S. commercial channels, typically resellers. That compares to 16.4 million PCs, overall, sold in the U.S. during the third quarter alone–excluding tablets, according to IDC. All told, about 46.2 million PCs have been sold in the U.S. during 2013, IDC found.

Within that segment, however, NPD reported some intriguing findings. Chromebooks, once largely the province of Acer and Samsung, have been embraced by Dell, HP, and others–not the least of which are paying customers. In 2012, Chromebook sales were “negligible,” NPD reported. But in the space of a single year, they climbed to 21 percent, NPD found, helping push overall notebook PC growth up by 28.9 percent.

Windows notebooks, however, contributed nothing to that, as NPD found that growth was flat. Worse still, Macs actually declined, with combined sales of desktops and notebooks falling by 7 percent. Windows tablet sales tripled, albeit off what NPD called “a very small base”.

The message? Businesses are turning to the Web, which Chromebooks almost exclusively run. And those low-cost, Net-focused devices are becoming engines of productivity. As a result, they’re receiving validation from traditional PC vendors including Acer, Asus, Dell, and Hewlett-Packard, plus Google’s own Pixel.

“The market for personal computing devices in commercial markets continues to shift and change,” saidA Stephen Baker, vice president of industry analysis at NPD, in a statement.A “New products like Chromebooks, and reimagined items like Windows tablets, are now supplementing the revitalization that iPads started in personal computing devices. It is no accident that we are seeing the fruits of this change in the commercial markets as business and institutional buyers exploit the flexibility inherent in the new range of choices now open to them.”

Naturally, tablet sales continued to explode, capturing 22 percent(or about 3.16 million units) of all the computing device sales sold through the U.S. channel. Of all tablets sold commercially, iPads dominated with 59 percent of all unit sales, leaving the rest to Android (which grew more than 160 percent) and Windows.

Baker said that diversity will be key to the future success of hardware makers, a signpost for what vendors might release at 2014 and the weeks and months following.

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Cryptolocker Infects 250K Systems

DELL’s security research team has revealed that a new form of ransomware, dubbed “Cryptolocker” has managed to infect up to 250,000 devices, stealing almost a million dollars in Bitcoins.

“Based on the presented evidence, researchers estimate that 200,000 to 250,000 systems were infected globally in the first 100 days of the CryptoLocker threat,” Dell announced in a Secureworks post.

The firm worked out that if the Cryptolocker ransomware threat actors had sold its 1,216 total Bitcoins (BTC) that they collected from September this year, immediately upon receiving them, they would have earned nearly $380,000.

“If they elected to hold these ransoms, they would be worth nearly $980,000 as of this publication based on the current weighted price of $804/BTC,” Dell said.

Cryptolocker is unique when compared against your average ransomware. Instead of using a custom cryptographic implementation like many other malware families, Cryptolocker uses third-party certified cryptography offered by Microsoft’s CryptoAPI.

“By using a sound implementation and following best practices, the malware authors have created a robust program that is difficult to circumvent,” Dell said.

Conventionally, ransomware prevents victims from using their computers normally and uses social engineering to convince them that failing to follow the malware authors’ instructions will lead to real-world consequences. These consequences, such as owing a fine or facing arrest and prosecution, are presented as being the result of a fabricated indiscretion such as pirating music or downloading illegal pornography.

“Victims of traditional forms of ransomware could ignore the demands and use security software to unlock the system and remove the offending malware,” Dell explained. “Cryptolocker changes this dynamic by aggressively encrypting files on the victim’s system and returning control of the files to the victim only after the ransom is paid.”

Dell said that the earliest samples of Cryptolocker appear to have been released on 5 September this year. However, details about its initial distribution phase are unclear.

“It appears the samples were downloaded from a compromised website located in the United States, either by a version of Cryptolocker that has not been analysed as of this publication, or by a custom downloader created by the same authors,” Dell added.

Dell seems to think that early versions of Cryptolocker were distributed through spam emails targeting business professionals as opposed to home internet users, with the lure often being a ‘consumer complaint’ against the email recipient or their organisation.

Attached to these emails would be a ZIP archive with a random alphabetical filename containing 13 to 17 characters, containing a single executable with the same filename as the ZIP archive but with an EXE extension, so keep your eye out for emails that fit this description.

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Is The US & UK Lacking In Broadband?

The US and UK are stragglers when it comes to consumer broadband download speeds and appear far down in table rankings.

This puts the countries, swaggering authoritarian surveillance monsters that they are, rather low down on the satisfaction scale.

The ranking produced by Ookla is based on results from Speedtest servers, and is called the Net Index.

“Based on millions of recent test results from Speedtest.net, this index compares and ranks consumer download speeds around the globe,” is the explanation.

“The value is the rolling mean throughput in Mbps over the past 30 days where the mean distance between the client and the server is less than 300 miles.”

Hong Kong takes pole position and it is credited as having download speeds in the area of 71.03 Mbps. There is a big drop of around 20 Mbps down to Singapore in second place with 52.85 Mbps and third is Romania, where speeds are 50.82 Mbps.

You have to look a long way down the list before arriving at the UK, which is in 25th place. Here, or there depending on where you live, consumers get a rather meagre sounding 23.55 Mbps.

The United States weighs in at 31st place and has download speeds of 20.77 Mbps. This puts it below the UK, Germany, Estonia, Hungary, Greece and 25 others.

Closer to home the European Commission has published its report on Broadband Coverage in Europe (2012) and reveals progress on broadband coverage targets. It found that while broadband has improved, it could be faster.

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Researchers Build Flying Robot

Researchers say they have assembled a flying robot. It’s not designed to fly like a bird or an insect, but was built to simulate the movements of a swimming jellyfish.

Scientists at New York University say they built the small, flying vehicle to move like the boneless, pulsating, water-dwelling jellyfish.

Leif Ristroph, a post-doctoral student at NYU and a lead researcher on the project, explained that previous flying robots were based on the flight of birds or insects, such as flies.

Last spring, for example, Harvard University researchers announced that they had built an insect-like robot that flies by flapping its wings. The flying robot is so small it has about 1/30th the weight of a U.S. penny.

Before the Harvard work was announced, researchers at the University of Sheffield and the University of Sussex in England worked together to study thebrains of honey bees in an attempt to build an autonomous flying robot.

By creating models of the systems in a bee’s brain that control vision and sense of smell, scientists hope to build a robot that would be able to sense and act as autonomously as a bee.

The problem with those designs, though, is that the flapping wing of a fly is inherently unstable, Ristroph noted.

“To stay in flight and to maneuver, a fly must constantly monitor its environment to sense every gust of wind or approaching predator, adjusting its flying motion to respond within fractions of a second,” Ristroph said. “To recreate that sort of complex control in a mechanical device — and to squeeze it into a small robotic frame — is extremely difficult.”

To get beyond those challenges, Ristroph built a prototype robot that is 8 centimeters wide and weighs two grams. The robot flies by flapping four wings arranged like petals on a flower that pulsate up and down, resembling the flying motion of a moth.

The machine, according to NYU, can hover and fly in a particular direction.

There is more work still to be done. Ristroph reported that his prototype doesn’t have a battery but is attached to an external power source. It also can’t steer, either autonomously or via remote control.

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Tizen Announces New Partners

Samsung and Intel announced on Tuesday that the open source Tizen operating system now has 36 partners, including eBay, Trend Micro and Panasonic.

The full list of new partners was announced at the Tizen Developer Summit, and includes a mix of firms from different sectors. Among the 36 backers are eBay, Nokia’s Here mapping service, Konami, McAfee, Panasonic, Sharp and The Weather Channel, giving us some insights as to what software applications are likely to appear on the Linux based operating system.

Trevor Cornwell, founder and CEO of Appbackr, one of Tizen’s newly added partners, said that his firm found the operating system appealing due to its open nature, perhaps hinting that it is more open than Google’s Android mobile operating system.

He said, “The Tizen OS promises to be the most open and comprehensive software platform available for those companies wishing to target the consumers of connected devices.

“The Association’s commitment to support HTML5 applications, combined with their vision that extends beyond the smartphone and tablet ecosystem to a wider array of other connected device segments, makes it attractive to all types of companies. We look forward to collaborating with the Tizen Association to ensure that all stakeholders can contribute to the development of a platform for this growing market opportunity.”

It’s still unclear when Samsung’s first Tizen powered smartphone will make it to market, but online speculation suggests we’ll be seeing the firm’s debut Android challenging smartphone at some point in 2014.

Further speculation suggests that Samsung’s first Tizen phone will be an updated version of the Galaxy S4, possibly to reduce its reliance on Android.

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