Tech firm paid IT workers $1.21 an hour

Oliver_Twist_-_Samhällsroman_-_Sida_005A San Jose based outfit, Electronics for Imaging paid several employees from India as little as $1.21 an hour to help install computer systems at the company’s Fremont headquarters.

The highly skilled workers, who could have earned more cash by sitting with a cup and dog on a string in the high street, worked up to 122 hours a week between September 8, 2013, and December 21, 2013.

Investigators from the division’s US Labour Department’s wage and hour division learned that the technicians were flown in from the employer’s office in Bangalore, India. The workers were paid in Indian rupees.

Susana Blanco, district director said: “We are not going to tolerate this kind of behaviour from employers.”

The $1.21 an hour was the lowest wage paid to workers that Blanco said she was aware of in the Northern California district. The record had been held by Bloom Energy which was ordered to pay back wages to 12 workers from Mexico who were being paid $2.66 an hour in Mexican pesos. The workers were repairing power generators.

Sylvia Allegretto, a UC Berkeley research economist and co-chair of the university’s Center on Wage and Employment Dynamics told the Mercury News that it was amazing that employers believed they could get away with this.

An anonymous tip prompted the US Department of Labour to investigate the case, which resulted in more than $40,000 in back wages paid to the eight employees and a fine of $3,500 for Electronics for Imaging.

Electronics for Imaging said it brought some IT employees from India temporarily to help its local IT team with the relocation.

Beverly Rubin, vice president of HR Shared Services with Electronics for Imaging said that during this assignment, they continued to be paid their regular pay in India, as well as a special bonus for their efforts on this project.

“During this process we unintentionally overlooked laws that require even foreign employees to be paid based on local US standards.”

The back wages were based on the difference between the $1.21 an hour that was paid and the California minimum wage of $8 an hour, she said. The entire $40,156 in back wages was distributed directly to the eight affected workers.

So an IT worker is hired at the same rate as someone who flips burgers.  Even at that rate, it is still economic for a company to bring in workers from India.

Google hires Oxford boffins to provide AI

oxford-robesGoogle is finding itself a little short on intelligence and has been seen snuffling around near the Oxford headquarters of TechEye.

When cornered, near one of the wheelie bins at the back of public house the Kite, a Google staffer explained that the search engine was expanding its artificial intelligence initiative. Apparently, they are hiring more than half a dozen leading academics and experts in the field and announcing a partnership with Oxford University to “accelerate” its efforts.

Apparently, Google will make a “substantial contribution” to establish a research partnership with Oxford’s computer science and engineering departments, and Oxford will return the favour by holding one of its famous dinners.

Google did not provide any financial details about the partnership, saying only in a post on its blog that it will include a program of student internships and a series of joint lectures and workshops “to share knowledge and expertise.”

Google is building up its artificial intelligence capabilities as it strives to maintain its dominance in the Internet search market and to develop new products such as robotics and self-driving cars. In January Google acquired artificial intelligence company Deep Mind for $400 million according to media reports.

The Oxford boffins will be joining Google’s Deep Mind team, including three artificial intelligence experts whose work has focused on improving computer visual recognition systems. Among that team is Oxford Professor Andrew Zisserman, a three-time winner of the Marr Prize for computer vision.

The four founders of Dark Blue Labs will also be joining Google where they will be will be leading efforts to help machines “better understand what users are saying to them.”

Google said that three of the professors will hold joint appointments at Oxford, continuing to work part time at the university.

 

Microsoft says it is still researching

2007_7young-frankensteinMicrosoft has not given up on research and development, despite closing its Silicon Valley lab.

Writing in his bog, Harry Shum, Executive Vice President, Technology & Research said that the recent shuttering of the Silicon Valley lab really hurt.

He said that no one at Microsoft felt good about the fact that a significant number of friends and colleagues were laid off.

“These people contributed to the success of Microsoft over many years. As one can readily imagine, the decisions made about how the cuts were implemented within MSR were extremely complicated and personally painful,” Shum said.

There had been some concern in the wider technology community that Microsoft would walk away from the huge amounts of research work it has done. However, Shum said that the closures did not mean that Vole had given up on inventing stuff.

“Microsoft Research still stands strong at 1000+ persons in labs worldwide, making it one of the largest research institutions of its kind in the world, either industrial or academic, “he said.

“Microsoft Research continues to be one of the very few organisations in industry that does true academic style open research. We will continue to collaborate with the academic research community not only in moving forward the state of the art in computing but also in developing computing talent around the world,” he added.

Microsoft results better than expected

SmaugMicrosoft reported higher than expected quarterly revenue, helped by stronger sales of its phones, Surface tablets and cloud-computing products for companies.

The cocaine nose jobs of Wall Street had been a little concerned that Microsoft might  suffer from am industry shift toward lower-margin cloud services.

Redmond shares, which have climbed 33 percent over the past year, rose another three percent in after-hours trading. You can pick up a good used share, with low mileage, for $46.36.

The Volish results fly in the face of negative earnings results from tech bellwethers Oracle, IBM, SAP, VMware, and EMC.

Big Blue’s miserable results were expected to be repeated by Microsoft  as all of them had made tentative inroads into the cloud, which generally yields thinner margins.

Microsoft did not disclose its cloud-based revenue for the fiscal first quarter, but said commercial cloud sales rose 128 percent, while sales of services based on its Azure cloud platform rose 121 percent.

Perhaps more importantly, it said gross profit margin in the unit that includes Azure rose 194 percent, despite rising infrastructure costs, which includes the huge expense of building and operating datacenters.

In the last four years, Microsoft’s gross profit margin has drifted down to about 65 percent from above 80 percent, largely due to its move into tablets and phones.

Microsoft is predicted to make $6 billion a year in cloud revenue soon, which would make it the industry’s largest cloud. However would still be only about six percent of overall expected revenue this fiscal year.

CEO Satya Nadella, in a conference call with analysts, said that Microsoft was the only company with cloud revenue that is growing at triple digit rates.

Nadella was keen to stress that Microsoft is more focused on selling higher-margin services via the cloud to its commercial customers.

Microsoft’s fiscal first quarter profit actually fell 13 percent, largely due to an expected $1.1 billion charge related to mass layoffs announced in July.

However it still collected a profit of $4.5 billion compared with $5.2 billion, or 62 cents per share, in the year-ago quarter. It easily beat Wall Street’s forecasts.

Revenue rose 25 percent to $23.2 billion, thanks to the phone business it bought from Nokia in April.  Lumia smartphones sales hit 9.3 million in the first full quarter since the close of the Nokia deal. Sales of the Surface tablet more than doubled to $908 million from $400 million last year.

 

 

Algorithms gouge online buyers

smartphone-shoppingA study by a team of researchers at the Northeastern University have discovered that online shops target people based on their profiles and charge some more than others for the same products.

The team said that people regularly receive personalised content, such as specific offers from Amazon.  That, the study shows, can be to a person’s advantage but e-commerce sites manipulate search results and customise prices without anyone knowing.

The researchers looked at 16 popular e-commerce sites, including 10 general shops and six hotel and car rental sites,to measure price discrimination and price steering.

“We have found numerous instances of price steering and discrimination on a variety of top e-commerce site,” they said in a report.

Some sites altered prices by hundreds of dollars and travel sites showed inconsistencies in a higher percentage of cases.

They said Expedia and hotels,com “steered a subset of users towards more expensive hotels”.

The team said that price differences were significant in some of the cases. Amazon and Ebay were excluded from the study and so too were firms like Apple.

Although the researchers said they contacted the sites they surveyed, they did not say how or if the companies replied.

Amazon invests in German datacentres

amazonsMany people might think that Amazon is where you buy your books, your Hue lights and your CDs but behind the scenes it is  becoming a major player in the datacentre business.

And now, according to the Financial Times, Amazon will build several datacentres in Frankfurt in a bid to allay customers’ fears that their data is housed in places where security and privacy are not as high a priority as in Germany.

The FT reports that the EU has much stricter data protection laws than other territories.  And, of the EU countries, Germany has the best privacy control.

A senior VP of Amazon Web Services told the FT that many of its German customers would prefer to have their data held locally. Although a figure hasn’t been placed on the German infrastructure investment, it’s believed that such a project will require a multimillion dollar investment.

US providers like Google, Rackspace and others compete with Amazon but are based in the USA.  Amazon is believed to generate revenues from its cloud business amounting to over $5 billion during 2014.

Move your datacentres to Scandinavia!

datacenterWhile many multinational and pan-European businesses have their co-location centres in Amsterdam, Frankfurt, London or Paris, IT managers should think about moving their datacentres to Norway or Sweden.

That’s according to analysts at the Gartner Group and there’s a number of reasons why Sweden and Norway are attractive.

Tiny Haynes, a research director at Gartner, said that power costs in Norway and Sweden have fallen by five percent since 2010. That contrasts with the EU average power costs that have risen 13 percent in the same period.

Also it’s cold in Norway and Sweden and that can give datacentres efficiencies by using outside air cooling.

Gartner believes that managers can save up to 50 percent by moving their infrastructure lock, stock and barrel.

Haynes said: “It’s likely that most organisations will find some workloads that can be moved to a lower cost location without impacting performance.”

Chromebooks put pressure on Microsoft

winbookThe success of Chromebooks has forced Microsoft to drop its licensing fees on Windows 8.1 notebooks, in a move that is forcing down prices on the products and is good news for buyers.

According to financial analysts at Seeking Alpha, Samsung has decided to use an X86 processor for its Chromebook 2 – a win for Intel in the X86 stakes.

HP and Acer are already selling Windows 8.1 notebooks for less than $200 and that is likely to create something of a frenzy in the run up to the holiday period.

Seeking Alpha points out that Intel’s mobile chip unit posted an $1.04 billion operating loss for its financial third quarter, despite selling chips for 15 million tablets during that quarter.

Intel is attempting to make “significant reductions in contra revenues next year”, but the financial analysts say X86 mobile chips will carry on losing money.

Samsung has dropped using ARM based processors for its Chromebook in favour of Intel, but the bad news is that most market research shows that sales of tablets are slowing, particularly in mature markets.

Seeking Alpha said: “Intel is losing big money in its quest to sell 40 million tablet chips this year.”

Microsoft bricks Scottish FTDI clones

kirkhillyard2Hardware hackers building interactive gadgets based on Arduino microcontrollers are finding that a recent driver update that Microsoft deployed over Windows Update has bricked fake FTDI chips.

The Scottish outfit FTDI makes USB-to-serial chips.  They are very popular and every microcontroller and embedded device out there that can communicate over a serial port uses one. As a result there’s a vast number of knock-off chips in the wild that appear to be made by FTDI, but in fact aren’t.

FTDI develops drivers for its chips which are obtained directly from FTDI, or they can be downloaded by Windows automatically, through Windows Update. But the latest version of FTDI’s driver, released in August, contains some new language in its EULA reprograms counterfeit chips rendering them largely unusable. According to its license:

Use of the Software as a driver for, or installation of the Software onto, a component that is not a Genuine FTDI Component, including without limitation counterfeit components, may irretrievably damage that component.

Of course no one reads the licence, which is stored inside the driver files, but at least the owners of cloned chips were warned.

What is also happening though is that developers who thought that they had bought legitimate FTDI parts are suddenly discovering that their supplier has been ignoring design specs and using knock-offs.

The new driver reprograms the PID of counterfeit chips to 0000 which means that necause this PID does not match any real FTDI part, the FTDI drivers no longer recognise the chips, and block access. This PID is stored in persistent memory, so once a chip has been reprogrammed it will continue to show this 0000 PID even when used with older drivers, or even when used with Linux.

FTDI has recovery software that enables chips to be reprogrammed, and when used with some older drivers, it appears to be possible to reinstate the “correct” PID. If the chips are ever used with the recent drivers, however, their PID will once again be set to 0000.

While there is some amount of sympathy for a hardware company that is having its products so widely cloned, there is a great sense that FTDI has gone too far by rendering them inoperable.

More here http://www.eevblog.com/forum/reviews/ftdi-driver-kills-fake-ftdi-ft232/.

 

Microsoft soothsayers say “beware of zero day”

soothsayer-resized-600Software giant Microsoft is warning its users about a new zero-day vulnerability in Windows that is being actively exploited in the wild.

The vulnerability is a risk to users on servers and workstations that open documents with embedded OLE objects.

It is currently being exploited via PowerPoint files as some companies are still trying to use these in meetings to bore staff to death without actually helping the company develop.

Apparently these specially crafted files contain a malicious OLE (Object Linking and Embedding) object which can be exploited by cybercriminals. What makes this nasty is that the vulnerability affects the latest fully patched versions of Windows.

Microsoft points out that users have to be involved in the email attack scenario.

For this attack to be successful, the user must be convinced to open the specially crafted file containing the malicious OLE object. All Microsoft Office file types as well as many other third-party file types could contain a malicious OLE object.

The attacker would have to host a website that contains a specially crafted Microsoft Office file, such as a PowerPoint file, that is used in an attempt to exploit this vulnerability.

“In addition, compromised websites (and websites that accept or host user-provided content) could contain specially crafted content that could exploit this vulnerability. An attacker would have no method to force users to visit a malicious website. Instead, an attacker would have to persuade the targeted user to visit the website, typically by getting them to click a hyperlink that directs a web browser to the attacker-controlled website.”

A successful exploitation could lead to the attacker gaining same user rights as the current user, and if that means administrative user rights, the attacker can install programs; access, modify, or delete data; or create new accounts with full user rights.

The vulnerability affects all supported Windows versions, and there is currently no patch for it. Microsoft is still investigating the matter and deciding whether they will issue an out-of-band patch or wait for the next Patch Tuesday to plug the hole.

Otherwise, do not open Microsoft PowerPoint files, Office files, or any other files received or downloaded from untrusted sources.

 

Lufthansa sells IT infrastructure to Big Blue

lufthansa-history-1German airline Lufthansa is about to sell its IT infrastructure unit to IBM as part of an outsourcing agreement for the services.

Europe’s largest airline by revenue is undergoing restructuring and cost-cutting efforts to better position itself to compete with low-cost carriers and Arabic rivals

It earlier this year said it was seeking a buyer for the unit, which provides data centres, networks and telephony. Apparently, it is worried that it requires a high level of investment and economies of scale, which the airline could not afford.

Under the deal, Lufthansa will outsource all of its IT infrastructure services to IBM for seven years. The US firm will take over the airline’s IT infrastructure division, currently part of Lufthansa Systems.

The deal will result in a one-off pre-tax charge of 240 million euro for Lufthansa. It will allow Lufthansa to reduce its annual IT costs by around 70 million euro a year. It is not clear how much this will all cost in the end as this is still being ironed out.

Oracle, Microsoft and Ask.com accused of copying Apple’s cartel ways

1159_tnOracle, Microsoft and Ask.com have been accused of treating their staff in exactly the same way as the fruity cargo cult Apple.

The suit against Microsoft filed by former employees Deserae Ryan and Trent Rau charges, among other things, that Microsoft and other companies entered into anti-solicitation and restricted hiring agreements without the consent or knowledge of its workers.

Oracle, Microsoft and Ask.com are facing suits alleging that they conspired to restrict hiring of staff. The suits are connected to a memo which names a large number of companies that allegedly had special arrangements with Google to prevent poaching of staff.

The document was filed as an exhibit in another class action suit in the US District Court for the Northern District of California, San Jose division over hiring practices. The tech workers who filed that suit alleged that Google, Apple, Intel, Adobe, Intuit, Lucasfilm and Pixar put each other’s employees off-limits to other companies by introducing measures such as “do-not-cold-call” lists.

Those seven tech companies had earlier settled similar charges in 2010 with the U.S. Department of Justice while admitting no wrongdoing, but agreed not to ban cold calling and enter into any agreements that prevent competition for employees.

Google, Apple, Adobe and Intel appealed in September District Judge Lucy Koh’s rejection of a proposed settlement of US$324.5 million with the tech workers, which she found was too low. Intuit, Lucasfilm and Pixar had previously settled for about $20 million.

Now it seems that former employees filing lawsuits against Microsoft, Ask.com and Oracle have asked that the cases be assigned to Judge Koh as there were similarities with the case against Google, Apple and others.

The companies might try to say that since the DOJ did not see it fit to prosecute them before 2010 they must have been legal.

Oracle said that it was excluded from all prior litigation filed in this matter because all the parties investigating the issue concluded there was absolutely no evidence that Oracle was involved.

Microsoft said the employees omit the fact that the DOJ looked into the same claims in 2009 and decided there was no reason to pursue a case against the company.

 

American gamers tell Aussie women to get back to the kitchen

aussie minersCorrection: Sarkeesian cancelled a planned speech at Utah State University (USU), which is in Logan, Utah and is a different university than the University of Utah in Salt Lake City. Apologies.

Women video game developers and critics in Australia are being threatened with rape and murder by American and Canadian gamers as the dispute that has gripped the global gaming community  goes global.

Sydney-based independent video game developer and critic ‘Sarah’ said she had received threats as a part of the movement after she voiced her opinion on an online gaming forum.  They were pretty blunt about what they were going to do to her for daring to make games that did not depict women as whores or sex objects.

“They were saying that they were going to rape me, they were going to kill me… They ran to friends of theirs, got them together … and started tweeting threats at me,” he said.

Sarah believed the perpetrators had set up a system that sent multiple threats to her account automatically.

Fortunately, they were not that clever. One posted a picture that allowed Sarah to figure out their name because they would screen capped it with their Facebook account in the background so I was able to find out the attackers name, and get a sense of who the other guys were.

They are all young, and they are all from the US and Canada and are all keen to spread their backward brand of misogyny to countries where women are treated a little more equally.

“That was almost a bit more terrifying – that they were this loose group of people that one of them could call up the others and they would attack.”

Unfortunately, because they were not Aussie misogynists they could not be arrested and charged with threatening behaviour.

The movement originated from a debate about whether video game journalists were too close to the industry, but then took a more threatening turn.

Earlier this month American feminist critic Anita Sarkeesian was attacked by people claiming to be from the gamergate movement shortly after posting an online video about the portrayal of women in games.

She was forced to cancel a speech at the University of Utah, after an anonymous threat from somebody who said they were planning to carry out a mass shooting at the event.

Moore’s Law offered glimmer of hope

Intel-logoResearchers at the US National Institute of Standards and Technology (NIST) have thrown Intel a lifeline in the shape of self assembling molecules.

Alexander Liddle, a materials scientist at NIST pointed out that Intel has just gone into production on a 14 nanometre generation of chips.

Liddle explained that at these sizes the problem is creating multiple masking layers and optical lithography “is simply not capable of reliably reproducing the extremely small extremely densie patterns. There are tricks you can use such as creating multiple, overlapping masks, but they are very expensive,” he said.

He said two pieces of research by NIST, by IBM and by MIT show a way to deposit thin films of a polymer on a template so that it self-assembles into precise even rows 10 nanometres wide.

“The problem in semiconductor lithography is not really making small features – you can do that but you can’t pack them together,” he said.  “Block co-polymers take advantage of the fact that if you make small features relatively far apart, you can put the block co-polymer on those guiding patterns and fill in the small details,” he said.

He’s optimistic that the NIST model will give him accurate results.

Microsoft waves goodbye to Nokia

nokia-lumiaThe Nokia brand name can’t be worth very much because Microsoft is going to ditch it from its line of phones.

It originally planned to use the Nokia name for as long as 10 years but freshly fledged CEO Satya Nadella is obviously revisiting just about everything ex-CEO Steve Ballmer had committed to.

Microsoft bought Nokia for a rather expensive $4.6 billion but the former Finnish mobile phone unit had already seen its fortunes wane.

Microsoft already had a mobile phone division so plenty of people scratched their heads and wondered why it even bothered to pay that much money for a firm that had seen its day.

Microsoft is currently going through a gigantic culling exercise which will see over 12,000 people lose its jobs.

Microsoft, like its long time partner Intel, has never really hit it big in the mobile phone market.

Future phones will be sold under the name of Microsoft Lumia, it appears.