Category: News

Security companies peddling snake oil

snake oilThe CEO of a security company has accused his fellow competitors of peddling snake oil to clients and lifted the lid on how they are doing it.

Paul Vixie, CEO, Farsight Security said that as security breaches increasingly make headlines, thousands of Internet security companies are chasing tens of billions of dollars in potential revenue and are doing by telling porkies to clients..

“We are alarmed at the kind of subversive untruths that vendor “spin doctors” are using to draw well-intentioned customers to their doors. Constructive criticism is sometimes necessarily harsh, and some might find the following just that, harsh. But we think it’s important that organizations take a “buyers beware” approach to securing their business,” Vixie said.

The best trick uses is to communicate information graphically, especially using colour animation.

“Buyers, being human, are visual creatures, and they inevitably feel greater, although misplaced understanding when value propositions are presented in pictorial form. Because quarter-on-quarter and same-quarter-next-year revenue growth is the main indicator of commercial health, there’s an understandable tendency to show potential customers an “attack map,” he said,

“Attack maps show the world with attacks as some kind of missile, launched from a country of origin, landing on a victim,” Vixie said.

It sends a message that the customer is under attack from state-sponsored criminals, or just plain old “foreigners”, and your prospective vendor can track these attacks as easily as NORAD can track incoming ballistic missiles.

The marketing message is: If you buy from us, we will tell you where the attacks are coming from, so that you can defend yourself. Or, even better, if you buy from us, we can defend you in real-time, using our cool tool.

The only problem is that they can’t.

In the cloud most of the time vendors have absolutely no clue as to where an attack is really originating from. They cannot neatly distinguish benign user behaviour from attack behaviour. Vendors don’t have instant knowledge and visibility when an attack occurs, Vixie said.

“The latest statistics say it usually takes around 200 days to discover an espionage intrusion.”

To make matters worse. Most “attack maps” don’t show actual “attacks” They are populated by event data which is beautifully animated yet unfiltered, unverified, non-prioritized event data that while visually compelling is worthless from a security perspective.

“In the worse and more common case, [customers] will make decisions based on this garbage, either prioritizing resources or spending where they aren’t needed against where they are needed, or learning a false sense of security, or, just as likely, a false sense of insecurity,” Vixie said.

The only beneficiaries from the resulting wrong-think will be shareholders and employees of the garbage-spewing security vendor, and of course, the bad guys, who as it turns out will have even less to worry about as they go about their work attacking, Vixie said.

 

SunGard plans its own setting

SunsetFinancial technology company SunGard Data Systems is planning to sell itself off for $10 billion, including its pile of debt.

SunGard has popped around to the investment banks collecting advisory mandates to prepare for interviews as early as next week, the people said. The company is thinking about either an outright sale as well as a potential initial public offering.

SunGard is owned by private equity companies and apparently decided to explore a sale after it was approached by at least one other company about a potential takeover.

So far it is all rumour and speculation. But the company is a bit of an oddity. It was bought up by the finance companies just before the 2008 financial crisis. Normally they are gutted off their assets like a kipper and what is left is flogged off.

However the equity companies hung on to SunGard making it one of the longest-held investments in private equity history. Part of the problem is that its owners have struggled to boost the company’s value to the point where they can cash out and make a decent return.

This is odd really as you would think that Silver Lake Partners, TPG Capital, Bain Capital, Blackstone Group, Goldman Sachs Capital, KKR and Providence Equity Partners could not make a fist of making the company a success no-one could.

What appears to have happened is that since the buyout, the firms have leached money from SunGard. In 2012 they paid themselves $720 million with their first dividend from the company.

SunGard provides software and processing services for financial firms and also serves the education and public sectors. Last year, it spun off its disaster recovery unit, which represented about a third of its revenue.
It makes $2.8 billion in annual revenue but it has a $4.7 billion and a cash pile of $447 million..

Schools demand refund from Apple and its partner

Teachers-apple-on-a-desk-007The Los Angeles Unified School District wants a refund from Apple over a bungled $1.3 billion deal to supply students with iPads.

In 2013, the schools were to equip each of its roughly 650,000 students with an iPad in one of the largest educational technology projects of its kind in the United States.

The entire deal was constructed by John Deasy, a Superintendent at the nation’s second-largest school district. He resigned in October amid criticism that he “favoured” Apple and Pearson for the project over better and cheaper technology.

A KPCC investigation found Deasy and his deputies communicated with Pearson employees over pricing, teacher training and technical support — specifications that later resembled the district’s request for proposals from vendors. Pearson and Apple emerged as the winning bidders and were awarded the now-abandoned contract in June 2013.

The FBI is investigating the project, and agents in December seized 20 boxes of documents relating to the program’s purchasing process from the district’s headquarters.

The problem was that the technology was not up to the job and the built-in curriculum was often incomplete.

The Los Angeles Times said the LAUSD’s Board of Education in a closed-door meeting on Tuesday authorized its attorneys to consider potential legal action against Apple and its channel partner Pearson.

“As you are aware, LAUSD is extremely dissatisfied with the work of Pearson,” the district’s general counsel, David Holmquist, said in a letter to Apple on Monday. “While Apple and Pearson promised a state-of-the-art technological solutio… they have yet to deliver it.”

Holmquist added that the district was severing ties with both companies for future services on the project, according to the Los Angeles Times.

However Pearson said that it was proud of its long history working with LAUSD and our significant investment in this ground-breaking initiative.

Symantec distances itself from Veritas sell off rumours

Symantec_Headquarters_Mountain_ViewSecurity outfit Symantec has been saying “oh look a badger” to reporters asking about its sale of its storage storage unit Veritas, for as much as $8 billion.

The dark satanic rumour mill claims that the floundering security vendor has approached NetApp, EMC and several private equity firms to gauge interest in the business. which the company purchased for $13.5 billion.

Veritas business has struggled to live up to expectations after sluggish demand for its storage and data management products.

The plan has been widely dismissed by Symantec, which wants to continue to split the company into two, independent publicly traded companies: one business focused on security and one business focused on information management.

Symantec said that it will separate Veritas and Symantec into two independently traded companies by the end of the calendar year. One focused on information management and one focused on security.

For the vendor, creating two standalone businesses will allow each entity to “maximise its respective growth opportunities and drive greater shareholder value.”

Michael Brown, president and CEO, Symantec has gone on record saying that Veritas remains a powerful brand that still has tremendous equity.

IBM deepens Apple partnership

1930s-couple-620x400IBM suits are deepening their partnership with Apple to make use of health information gathered by millions of Apple devices,

Biggish Blue, is creating a unit dedicated to providing data analytics to the healthcare sector and think that the millions of Apple watches which people bought by mistake will provide them with the data.

Of course the only problem is that Apple’s watch’s are not collecting any health data because after two years of delays Jobs’ Mob could not get them to work. Instead it seems that they will run on data collected from iPhones.

This of course means that only people using Apple gear will be providing the sort of data that IBM can use.  This might mean that Android users will just die — only this seems to be a data gathering exercise more than anything.

Nevertheless IBM plans to use its new Watson Health unit plans to aggregate health information from a large number of devices and providers in the cloud and offer insights to health companies such as Johnson & Johnson and Medtronic, which can then integrate results into services they sell to healthcare companies.

IBM said it will create headquarters for the unit in Boston with 2,000 employees, including about 75 medical practitioners. IBM also said it bought two health technology firms, Explorys and Phytel, for an undisclosed amount, to add to its skills in health data analytics.

IBM already has an arrangement to work with Apple on numerous enterprise applications, but is extending its co-operation in the area of health.

Watson Health is named for IBM’s artificial intelligence supercomputer which now write’s cookbooks for Amazon. It will bring cloud services and analytics to Apple’s latest forays into the health business, HealthKit and ResearchKit, IBM said.

French ISPs will not surrender their clouds to government

libertyFrench ISPs have warned the government that they will move their operations out of France if the government brings through a bizarre spying bill.

Five hosters of French computer data said the bill will create an intelligence “exile” from France as ISPs try to avoid losing their customers by moving their operations somewhere else in the EU.

The five do not want to install the “real-time capture of data connection” boxes on their sites which is part of the law.

The ISPs believe that this project “will not reach its goal of putting every French person under surveillance, and will destroy a major segment of the economy of the country.” They said that their customers will turn to other territories to flee the intrusion.

The five have pledged to move their infrastructure, investments and employees where our customers will want to work with us. This will mean massive job losses in France.

“There are thousands of jobs … and start-ups and large companies will go also create elsewhere,” they added.

Two of the biggest data warehouses Gandi and OVH signed the statement along with IDS outfits Ikoula and Lomaco.

The French Association of Software and Internet solutions Publishers (AFDEL), which brings together publishers and Internet companies, said that the proposed implementation of the devices mentioned in the bill was “vague” and that it “feared” that this law, which is part of an extra-judicial framework, would undermine confidence in digital technologies and solutions and thus the competitiveness and attractiveness of French industry.

PC sales slip back into the doldrums

pc-sales-slumpPC sales plunged lower than a Hollywood starlet’s dress in the first quarter of this year, according to Gartner Group.

One big reason for the decline was businesses buying fewer desktop computers, according to the Gartner research firm. It noted companies have mostly finished replacing older PCs that used outdated Windows XP software.

PC sales may get a boost later this year when Microsoft releases its next version of Windows, analysts said, but they’re still expecting an overall decline in sales for this year.

Gartner added that there had been an sales of laptop computers and hybrid models that combine features of tablets and laptops. That could help drive a gradual return to growth by next year.

Gartner analyst Mikako Kitagawa estimates PC makers shipped 71.7 million computers in the first quarter, down 5.2 percent from a year earlier.

Some computer makers are doing better than others. China’s Lenovo saw an increase in worldwide sales, as did its nearest competitor, the maker of expensive printer ink HP.. However smaller companies, including Dell, saw sales decline.

Global PC sales have fallen steadily over the last three years, but Gartner are projecting a return to growth in 2016. Tablet users are giving up on the technology and are moving back to notebooks.

Satyam boss convicted for fraud

Ramalinga-Raju-Chairman-SatyamAn Indian court has convicted the former chief of outsourcing giant Satyam, Byrraju Ramalinga Raju, and his mates over a massive accounting fraud. 

Raju was the former chairman of outsourcing giant Satyam, and the case has tied up the Indian courts for nearly six years. All 10 accused,were found guilty by a special court in Hyderabad.

It was touted as the biggest accounting fraud in the country, and it first came to light in early 2009 after Raju confessed that he doctored key financial results and created a fictitious cash balance of more than US$1 billion.

Before that he overstated profits for several years, inflating the amount of debt owed to the company and understated its liabilities.

He was arrested two days later after he confessed to the fraud, along with his brother Rama Raju and others. They were charged with cheating, criminal conspiracy, forgery and breach of trust under relevant sections of the Indian penal code.

Satyam was once one of India’s biggest IT outsourcing companies. It was sold to Tech Mahindra in April 2009 in a government-overseen auction, which later absorbed the company in full.

Also involved in the case was Pricewaterhouse Coopers, which was in charge of auditing the firm when the scandal broke. So far there has been no indication what will happen to that outfit — after all they must seen the books and should have spotted what was happening.

The sentences will be announced on tomorrow. All 10 accused are presently out on bail.

Sandisk increases channel purview

datacenterFlash storage company Sandisk said today it has introduced an enterprise reseller partner programme for its worldwide partners.

Sandisk said it will add support, resources and rewards to existing VARs who qualify to resell its enterprise products.

The reason for the expansion is that flash tech delivers better performance and efficiences for data centres.

The enterprise programme is for Sandisk Commercial business channel partners that re-sell Sandisk hardware and software data centre products, including CloudSpeed SATA drives, caching software, and Optimus SAS solid state drives.

Some of the benefits of joining up include education and training, certification, a web based partner portal, and incentive programmes. There will also be a volume incentive rebate for particular resellers.

 

Bitcoin Foundation is out of cash

irony31The Bitcoin Foundation is ironically bankrupt and has shed most of its staff.

Olivier Janssens, who was elected to the board last month wrote in his bog that the foundation has almost no money left, and just fired 90 percent of its people. Some will stay on as volunteers.

“The Bitcoin Foundation hates transparency,” he added. “If they would have been transparent then everyone would know there is no money left.”

Janssens attributed the foundation’s financial straits to two years of “ridiculous spending and poorly thought out decisions,” adding that the board has tried to remedy the situation by finding a new executive director. He called for the replacement of the entire board.

Janssens is a bitcoin millionaire and he wrote that he will donate “several 100k” to a special trust fund aimed at supporting core development of the digital currency and supplemented by crowdfunding efforts.

Patrick Murck, its executive director, wrote in a response to Janssens’ post, “The foundation is not bankrupt, but a restructuring is needed. Olivier basically jumped in front of our announcements on that and our annual report on the 2014 finances to be released next week, and he spun it very very negative.”

Admitting that the money has run out, board member Gavin Adresen wrote in another response that that the foundation was not bankrupt.

“The board needs to decide whether the responsible thing to do is to continue the organization with a much smaller organization and vision or to dissolve it.”
The Bitcoin Foundation has a few problems going for it.

Among its founding members are Charlie Shrem, who pleaded guilty to transmitting money linked to the Silk Road online drugs site, and Mark Karpeles, who presided over the collapse of MtGox, once the world’s largest trading place for bitcoin.

In May 2014, a number of Bitcoin Foundation members quit in frustration over the organization’s direction and issues related to a board election.

Windows 11 codenamed Redstone

redstoneblock1With Windows 10 coming to market sometime this summer, or possibly later, Microsoft is already starting to work on the next update for the OS and has been devoting brain time to what to call it.

The codename for the project, which will be ready in 2016, will be ‘Redstone’, a popular item in the recently acquired game, Minecraft.

Not much is known about Microsoft’s plans for Redstone but the company has now entered the planning stages of the update.

Microsoft  has been using minecraft and some of its other games to provide codenames. There have already seen several names from the Halo series spring to life, like the Spartan web browser.  Cortana also comes from the game and not a clapped out car teens used to drive around in the 1980s.

Windows 10 is an overhaul of the entire platform, so Redstone will likely be relatively minor in comparison, but other than the name that is all we have on it.

Windows Server is expected to be released in 2016, so Redstone could possibly be related to this project as well. But if you know that when Vole is talking about Redstone, you know it is going to be about Windows 11.

 

Infomatica sold for $5.3 billion

20120313_InformaticaBusiness software maker Informatica has just sold itself for $5.3 billion to private equity firms Permira Funds and Canada Pension Plan Investment Board (CPPIB).

This means that Informatica shareholders will get $48.75 per share in cash. But the sale does represent a failure by Infomatica  to see off a buy out.

Activist hedge fund Elliott Management has an 8 percent stake in Informatica in January and said it was speaking to the company about ways to maximize shareholder value. In fact word on the street was it was thinking of buying it.

Informatica has been looking to hire financial advisers to help it defend itself from Elliott, after failing to sell itself in January.

Jesse Cohn, head of U.S. equity activism at Elliott said that the hedge fund supported the new deal.

Informatica helps companies integrate and analyse data. It counts Western Union, Citrix Systems, American Airlines Group and Bank of New York Mellon among its customers.

The outfit competes with Tibco, which was taken private for $4.3 billion in December by private equity firm Vista Equity Partners.

“Informatica … is better positioned (than Tibco) to benefit from the adoption of cloud technologies,” Mizuho Securities analyst Abhey Lamba wrote in a note on Monday which did not end up on his fridge.

Analysts have said the company’s shift to cloud and subscription revenue is pressuring margins.

 

Trend says that destructive hacking on the rise

1858_4_CourseOfEmpire_Destruction_ColeHacking attacks which are designed to destroy a company, rather than just steal information, are on the rise.

A poll by the Organisation of American States found that 40 percent of respondents had battled attempts to shut down their computer networks, 44 percent had dealt with bids to delete files and 54 percent had encountered “attempts to manipulate” their equipment through a control system.

Less than 60 percent of the 575 respondents said they had detected any attempts to steal data, long considered the predominant hacking goal.

The survey went to companies and agencies in crucial sectors as defined by the OAS members. Almost a third of the respondents were public entities, with communications, security and finance being the most heavily represented industries.

The questions did not delve into detail, leaving the amount of typical losses from breaches and the motivations of suspected attackers as matters for speculation. The survey-takers were not asked whether the attempted hacks succeeded, and some attacks could have been carried off without their knowledge.

The survey did allow anonymous participants to provide a narrative of key events if they chose, although those will not be published.

The report was compiled by Trend Micro whose Chief Cyber security Officer Tom Kellermann said additional destructive or physical attacks came from political activists and organised crime.

“We are facing a clear and present danger where we have non-state actors willing to destroy things,” he said. “This is going to be the year we suffer a catastrophe in the hemisphere, and when you will see kinetic response to a threat actor.”

Destructive attacks or manipulation of equipment are infrequently revealed. That is in part because breach-disclosure laws in more than 40 states centre on the potential risks to consumers from the theft of personal information, as with hacks of retailers including Home Depot and Target.

 

Singtel buys US security outfit

history-of-headphones-1895Singapore Telecommunications, or Singtel, is buying US-based cyber-security firm Trustwave for $810 million.

The move is the outfit’s biggest acquisition outside the main telecoms sector and is being touted as a Singtel moving away from being a pure-play telecoms company.

Apparently it wants to be involved in something analysts are calling “digital life”, which includes mobile video and digital advertising, and cyber security through partnerships with FireEye and Akamai, among others. Failing that it wants to be lumberjack.

Even if Singtel had no cunning plans, there is money to be made in the managed security services industry according to Gartner Group. Managed security will grow 15 percent annually from 2014 to reach $24 billion in 2018.
That growth potential has already stoked other acquisitions in the cyber-security business, including BAE’s $232.5 million deal to buy SilverSky and FireEye’s $1 billion takeover of Mandiant, both in 2014.

Singtel, which owns stakes in regional operators including India’s Bharti Airtel and Thailand’s Advanced Info Service, will buy a 98 percent equity stake in the company from a group of investors assembled by Trustwave’s chairman and chief executive officer, Robert McCullen. He will hold the remaining 2 percent.

Trustwave will continue to operate as a stand-alone business unit, Singtel said.
Trustwave, which has over 3 million business subscribers, offers a range of services, including scanning of databases, risk identification and payment compliance. Singtel declined to provide names of specific clients.