NASA watching “perfect storm” of galactic cosmic rays

Astronauts and satellite integrated circuits are at most risk of an ongoing tempest of galactic cosmic rays that scientists say is at an all-time high. Cosmic rays cause showers of particles when they hit Earth's atmosphere but they pose their greatest health hazard, radiation, to astronauts in space. According to NASA's Goddard Space Flight Center, galactic cosmic rays come from outside the solar system and are made up of subatomic particles accelerated to almost light speed by distant supernova explosions.

They aren't too healthy for satellites either as a single cosmic ray can disable the unit if one hits an unlucky integrated circuit, NASA said. "In 2009, cosmic ray intensities have increased 19% beyond anything we've seen in the past 50 years," said Richard Mewaldt of Caltech in a release. "The increase is significant, and it could mean we need to re-think how much radiation shielding astronauts take with them on deep-space missions." Network World Extra:  Top 10 cool satellite projects 10 NASA space technologies that may never see the cosmos   NASA says the surge is being caused by what it calls a "solar minimum," a deep lull in solar activity that began around 2007 and continues today. Right now solar activity is as weak as it has been in modern times, setting the stage for what Mewaldt calls "a perfect storm of cosmic rays." Mewaldt also says the solar wind is flagging. "Measurements by the Ulysses spacecraft show that solar wind pressure is at a 50-year low, so the magnetic bubble that protects the solar system is not being inflated as much as usual." A smaller bubble gives cosmic rays a shorter-shot into the solar system. Researchers have long known that cosmic rays go up when solar activity goes down. Once a cosmic ray enters the solar system, it must "swim upstream" against the solar wind. Still the Earth is in no great danger from the cosmic bombardment.

Solar wind speeds have dropped to very low levels in 2008 and 2009, making it easier than usual for a cosmic ray to proceed, he stated. The planet's atmosphere and magnetic field combine to form a formidable shield against space radiation, NASA points out. The study, conducted by the National Academy of Sciences noted that besides emitting a continuous stream of plasma called the solar wind, the sun periodically releases billions of tons of matter called coronal mass ejections. Earlier this year a NASA-funded study looked to show some of the first clear economic data that quantifies the risk extreme weather conditions in space have on the Earth. These immense clouds of material, when directed toward Earth, can cause large magnetic storms in the magnetosphere and upper atmosphere, NASA said.

One of the driving reasons for the study is that the sun, as we mentioned above, is currently near the minimum of its 11-year activity cycle but solar storms will increase in frequency and intensity toward the next solar maximum, expected to occur around 2012. Such space weather can impact the performance and reliability of space-borne and ground-based technological systems, NASA said.

Retailers taking orders for laptops with Core i7 chips

Retailers are now taking orders for what could easily be the world's fastest laptops, powered by Intel's speedy Core i7 desktop processors. The chips, launched in November, were dubbed the "world's fastest chips" by Intel until the company's Xeon server processors were introduced in March. U.S. retailer AVADirect and Canadian retailer Eurocom are offering variants of Clevo's D900F laptop with the Core i7 processor, a chip usually included in high-end gaming desktops. The laptops will come with 17-inch screens and are intended to be desktop replacement PCs. The machines don't skimp on features and include a full array of components one would find in Core i7 desktop systems, according to laptop specifications on the retailers' Web sites.

Laptop hardware usually lags desktop hardware by up to 12 months, so the desktop hardware needed to be redesigned for notebook usage, AVADirect said. AVADirect, in particular, decided not to wait to bring the Core i7 hardware to consumers in a portable form. "While power usage will be higher, AVADirect does not need to wait until Intel or some other company designs and implements mobile offerings of current desktop hardware," AVADirect said in a statement. The laptops come with Core i7 920, 940 and 965 quad-core processors running at speeds from 2.66GHz to 3.2GHz, and include 8MB of L3 cache. The laptops will support up to 6GB of DDR3 memory, which should provide a tremendous performance boost. The laptops draw 130 watts of power, and will come with the X58 chipset and an Nvidia graphics processing unit (GPU) to boost graphics performance. The machines will support up to 1.5TB of RAID hard drive storage and include wireless 802.11a/b/g/n technology.

The price crosses $6,000 for an extravagant configuration that includes the fastest Core i7 965 processor, three 500GB storage drives, internal Bluetooth capabilities, a DVD-RW drive and additional cooling features. They will ship with either Windows Vista or Linux OS. Eurocom's customized Clevo D900F system - which is called the Panther D900F - weighs a whopping 11.9 pounds (5.4 kilograms). With standard components, the D900F laptop's starting price is around US$2,500 on AVADirect's Web site. Intel's Core i7 chips are a significant upgrade over Intel's Core 2 Duo chips, which are currently used in desktops and laptops. Each core will be able to execute two software threads simultaneously, so a laptop with four processor cores could simultaneously run eight threads for quicker application performance. The new chips are built on the Nehalem microarchitecture, which improves system speed and performance-per-watt compared to Intel's earlier Core microarchitecture. Intel has integrated the chips and chipset with QuickPath Interconnect (QPI) technology, which integrates a memory controller and provides a faster pipe for the CPU to communicate with system components like graphics cards.

The chips, code-named Arrandale, will be dual-core and start shipping in the fourth quarter this year, with laptops becoming available in early 2010. Arrandale chips are expected to be faster than existing Core 2 Duo chips and consume less power. Intel later this year intends to introduce new chips for desktops and laptops. However, laptops with Arrandale chips may not match the speeds of Core i7 laptops, considering the chips will be dual-core and built to draw limited amounts of power.

The IT-Lite branch office

This is the third in a series of three newsletters intended to demonstrate that the next generation branch office represents a multi-year migration away from branch offices that are IT-heavy to ones that are IT-lite and that as part of this migration, the WAN plays an ever increasing role in application delivery. Part 1: The Evolving Branch OfficePart 2: Today's branch office There is no doubt that over the next couple of years that relatively few branch offices will truly be server-less. This newsletter will look ahead and will discuss the IT-lite design towards which most IT organizations are migrating. There is also no doubt, however, that as IT organizations continue to adopt an IT-lite branch office design, they will continue to have fewer IT resources in the branch office.

That device could be a router from a vendor such as Cisco, a WAN optimization controller from a company such as Riverbed, or a branch office box from a company such as Microsoft. In many cases, it will be difficult to find a server in a branch office as there will be one primary device in the branch office and it will support myriad functionality. Each branch office employee will continue to have a computing device such as a desktop computer, a laptop or a smartphone. Given the current economic environment and the pressure to minimize business travel and yet maximize collaboration, it is highly likely that most IT organizations will make an ever increasing use of unified communications (UC). Depending on the extent of the deployment of UC, this could cause a dramatic shift in the amount of real-time traffic that the branch office network will have to support. However, due to the ongoing deployment of desktop virtualization, the branch office users' desktop and applications are likely to be stored at a central data center.

Real-time traffic over the WAN poses a challenge because it generally requires higher priority than data applications and can consume significant WAN bandwidth, especially if desktop videoconferencing is involved. This will necessitate the use of a WAN service. Given the momentum in the market, it is also highly likely that over the next few years that branch office employees will increasingly access applications that are acquired from a software-as-a-service (SaaS) provider. The question is: Which WAN service? An Internet overlay from a company such as Akamai? The Internet?

An MPLS service? The obvious answer is yes – all of the above. An MPLS service supplemented by WAN optimization functionality? In future newsletters we will come back to this issue and talk more about how we see cloud networking evolving.

Wall Street Beat: IT vendors see return to growth

With quarterly IT sales results pouring in, vendors including IBM, Google, Advanced Micro Devices and Intel appear more confident than ever that the global recession's depressing effects on the tech market are lifting. IBM, the second-biggest IT company in the world behind Hewlett-Packard, reported better-than-expected third-quarter results Thursday. Major U.S. market indexes including the tech-heavy Nasdaq dipped Friday, however, as investors absorbed mixed macroeconomic news. Though revenue dropped 7 percent from a year earlier to US$23.6 billion, it rose 1 percent sequentially from the second quarter and bested the $23.4 billion consensus forecast of analysts polled by Thomson Reuters.

The company reported its third-quarter net earnings rose to $3.2 billion from $2.8 billion a year earlier. IBM's diverse portfolio of services and its global footprint helped it weather the economic storm this year. More important - in terms of signs of recovery - is that Chief Financial Officer Mark Loughridge, in a conference call, forecast a return to revenue growth in the fourth quarter. IBM shares slipped by $5.80 to $122.18 in midday trading Friday, however, as investors questioned the extent to which foreign exchange rates factor into the revenue figures. Revenue increases are often seen as the real signal of growth for any company, since earnings can be boosted by cost cuts.

Google, also reporting results Thursday, said revenue for the quarter ending in September jumped 7 percent to $5.94 billion - the Internet ad giant's fastest sales growth rate so far this year. Google, which generates more than 90 percent of its revenue from search-related advertising, is widely seen as a barometer for Internet commerce. It said net earnings were $1.64 billion, a 27 percent jump from last year and on a per-share basis, higher than analyst expectations. "The worst of the recession is clearly behind us," proclaimed CEO Eric Schmidt in a company statement. Google shares bucked the downward market trend Friday, hitting a 52-week high for the company at $554.75 in midday trading. Analysts have for several months forecast a return to growth for the hardware sector.

On the hardware components front, AMD said Thursday that revenue fell in the third quarter, but that it expects sales in the last three months of the year to rise "modestly." Revenue in the quarter dropped 21.3 percent to $1.4 billion from a year ago, but beat the $1.26 billion expected by analysts. IDC said Wednesday that global PC shipments in the third quarter did in fact rise 2.3 percent from the same quarter a year earlier, to 78.1 million units - the first quarter this year in which PC shipments increased compared to 2008. Gartner also said this week that PC shipments rose during the quarter. Rising PC sales are boosting the fortunes of chip companies. Though Gartner's estimate of a 0.5 percent year-over-year growth was smaller than IDC's, its figure for total shipments was higher, at 80.3 million units. "These are good results especially given that PC shipments for the third quarter of 2009 are being compared to a very strong third quarter from 2008," said Mikako Kitagawa, principal analyst at Gartner, in the report. Intel on Tuesday reported strong quarterly results and forecasts that beat industry expectations. Intel forecast fourth-quarter revenue of $10.1 billion "plus or minus $400 million," while analysts had been expecting $9.5 billion. "The timing of Windows 7 is favorable for the industry due to expected economic improvements and an overdue hardware replacement cycle," Gartner's Kitagawa noted.

Intel's revenue of $9.39 billion was up by $1.4 billion compared to the prior quarter, though it was lower than the $10.2 billion in the third quarter last year. Not all vendors are upbeat, however. Though Nokia now expects global, industrywide mobile-device sales to fall by only 7 percent this year - compared to its prior forecast of 10 percent - CEO Olli-Pekka Kallasvuo injected a note of caution in an otherwise upbeat earnings week. "Let's be clear, uncertainty in end-consumer demand remains," said Kallasvuo on a conference call. Nokia on Thursday reported a third-quarter loss of €559 million (US$833 million) mainly due to charges related to its Nokia Siemens networking infrastructure business, which has been losing market share. That uncertainty spooked investors Friday, as markets tumbled. The Dow Jones Industrial Average slumped by 67.9 points to hit 9997.35 in midafternoon trading, while the Nasdaq Composite dipped 13.08 to 2160.21. IT companies have been riding a wave of optimism recently.

Though most tech leaders were upbeat this week, news about financial and consumer companies - including disappointing earnings results from Bank of America and General Electric - spooked investors. Shares of Nasdaq computer companies are as a group up by 38.25 percent from a year ago, when the U.S. financial sector was crumbling. Whether this trend continues will depend to a large degree on quarterly results from other tech leaders such as Microsoft, BMC, Yahoo and AT&T in the next few weeks. Nasdaq telecom shares are up 32.74 percent from a year ago.

Verizon revenue up slightly in third quarter

Verizon Communications reported revenue of US $27.3 billion for the third quarter of 2009, up 10.2 percent from a year earlier, but up only 0.6 percent if revenue from the January acquisition of competitor AllTel is taken out. Gains in the quarter were largely driven by growth in mobile customers and subscribers for Verizon's Fios fiber-based broadband and television service. Verizon's net income for the quarter was $2.9 billion, down from $3.2 billion in the third quarter of 2008. Adjusted earnings per share were $0.60, beating analyst expectations of $0.59, according to Thomson Reuters.

Verizon CEO and Chairman Ivan Seidenberg cited free cash-flow growth that is 16 percent higher in 2009 than in 2008 as a highlight of the quarter. Verizon Wireless revenue was $15.8 billion for the quarter, up 24.4 percent over last year, or 4.9 percent on a pro forma basis. Free cash flow for the quarter was $10.7 billion, up by $3.3 billion from the third quarter of 2008. "Verizon continues to generate strong cash flow, which we have used in building the foundation for sustainable, long-term share-owner value," he said in a statement. "Even through the worst of the recession, we have continued to raise our dividend and to add new customers, expand markets and grow revenues based on the power and innovation of Verizon's wireless, broadband and global networks." Verizon reported 89 million mobile customers at the end of the quarter, with 1.2 million net additions, excluding acquisitions and adjustments. Wireless data revenue grew to $4.1 billion, up 28.9 percent on a pro forma basis. The company now has 3.3 million Fios Internet customers, up 49.2 percent over a year ago, and 9.2 million broadband subscribers, including DSL (Digital Subscriber Line). Wireline revenue overall was $11.6 billion, down 4.8 percent from the third quarter of 2008. Verizon also saved money by cutting about 5,000 employee and contractor jobs, 4,000 in its wireline division, during the quarter, said John Killian, executive vice president and chief financial officer. Verizon's wireline division added 198,000 new Fios Internet customers and 191,000 new Fios television customers.

The company expects to cut another 4,000 jobs in the fourth quarter, he said. The bad U.S. economy "continues to create headwinds" for the company, but Verizon is taking steps to keep costs down, Killian added. "I'm confident that when the economy gets better, we will see improvement in our results," Killian said during a conference call.

Microsoft 'neutered' UAC in Windows 7, says researcher

Microsoft's decision to reduce the number of annoying security messages that Windows 7 delivers when users install software makes the new operating system more vulnerable to malware infection than Vista, a researcher said today. "UAC was neutered too much by Microsoft," argued Chester Wisniewski, a senior security advisory with Sophos, talking about Windows' Users Account Control (UAC), the security feature Microsoft debuted with Vista. In an effect to quash user complaints - which had condemned the constant intrusions - Microsoft modified UAC so it appears less frequently in Windows 7. That wasn't a good idea, said Wisniewski. "We wanted to know if UAC was going to be effective in Windows 7," he said. "So we grabbed the next 10 [malware] samples that came in and tried them out." The 10 samples, most of them Trojan horses, were loaded onto a clean Windows 7 PC that lacked antivirus software, simulating payloads that an actual exploit would deposit on a compromised computer. UAC prompts users for their consent before allowing tasks such as program and device driver installation to take place.

Wisniewski then ran each piece of malware, as if a user had been duped into launching a file attachment or had surfed to a malicious site and been victimized by an drive-by attack and subsequent silent download. He acknowledged that the test was quick-and-dirty, and didn't accurately portray how secure Windows 7 was overall, or even how well it would withstand attack if protected by antivirus software, even basic programs like Microsoft's free Security Essentials . The point was to see how much Windows 7's reconfigured UAC would help block malware that made it past security software or got by other defensive measures of the operating system, like DEP (Data Execution Protection) and ASLR (Address Space Layout Randomization). "UAC is really not protecting users properly," Wisniewski said. "Frankly, people should turn it back into the more aggressive mode, like Vista," he said, speaking of the ability to set the feature's prompting frequency. "And if you find it annoying, you might just as well turn it off, because otherwise it's not doing any good." UAC's effectiveness has been questioned before. Of the 10 samples, two would not run under Windows 7 - not surprising since they were likely designed to execute on the far-more-common Windows XP and Vista - and only one of the remaining eight triggered an UAC prompt, said Wisniewski. Last February, for instance, a developer for a Virginia-based company that sells secure messaging software to the U.S. government and a well-known blogger claimed that a change to UAC 7 could be exploited by attackers to secretly disable the feature. Microsoft first denied that it was a bug, saying instead that it was by design, but then backpedaled and promised to fix the problem .

Facebook captures largest IT deal of quarter

The IT industry raised almost $2 billion in venture capital in the third quarter, regaining its position as the top money-grabber, Dow Jones VentureSource says in a new report. Facebook captured the IT industry's biggest investment in the quarter, with a $100 million round from undisclosed investors in mid-July. But overall, IT investment has hit its lowest point in 12 years. http://www.networkworld.com/supp/2009/outlook/hottech/010509-nine-hot-te... ">Web 2.0 companies are on the upswing, but software investments are dramatically lower than they were last year. "The slow recovery we've seen for venture capital has faltered," Jessica Canning, director of global research for Dow Jones VentureSource, said in a news release. "As liquidity and fundraising lag after the economic meltdown in 2008, investors have no choice but to keep a tight rein on investments until the industry is on more solid ground." IT companies raised $1.87 billion across 270 deals in the third quarter, compared to $1.94 billion across 248 deals in the second quarter for the IT sector.

IT emerged as the top market for venture capital in the third quarter because the healthcare industry suffered a drop from $2.2 billion to $1.7 billion. Despite receiving more venture money than the healthcare industry, investments in the IT industry are still at a 12-year-low and significantly below 2008 levels. While the IT sector is typically the leading recipient of venture capital, healthcare companies had briefly overtaken IT with their second quarter total, according to Dow Jones. Last year, IT companies took in $12.2 billion in venture investments across 1,328 deals. A bright spot for IT comes from the Web 2.0 sector, where investments surpassed the software market for the first time. With data from three out of four quarters in 2009, the industry is at just $5.4 billion across 747 deals.

The information services sector - which includes most Web 2.0 companies - pulled in $627 million in new investments in the third quarter, up 11% over the same period last year. For all industries, venture capitalists invested $5.1 billion in 616 deals in the third quarter, down 6% since last quarter and down 38% since the third quarter of 2008. If current trends persist, 2009 will be the worst investment year in U.S. venture-backed companies since 2003, according to Dow Jones. Software companies, meanwhile, raised just $581 million in the quarter, a 55% decline from the $1.3 billion invested in the same timeframe last year. "This is the [software] sector's lowest quarterly investment total since 1996," Dow Jones reports. Follow Jon Brodkin on Twitter: http://www.twitter.com/jbrodkin

Obama bars fed workers from texting and driving

A two-day Distracted Driving Summit in Washington concluded Thursday after experts raised multiple thorny questions on how to reduce cell phone and texting while driving, with a big emphasis placed on driver and employer responsibility. LaHood also announced that his department would ban text messaging altogether and restrict cell phone use by truck and interstate bus drivers, and disqualify school bus drivers from receiving commercial driver's licenses if they have been convicted of texting while driving. After mentioning that President Obama had just signed an executive order that tells all federal employees not to engage in texting while driving government vehicles, Transportation Secretary Ray LaHood urged private sector employers to avoid calling workers on their cell phones as they drive home from work.

His department also plans to make permanent some restrictions placed on the use of cell phones in rail operations, he added without offering further details. "Employers need to change their mindset, too, and if you know your staff has left for the day, do not expect them to instantly return a phone call or IM when they'e driving home," LaHood said in a concluding address. The executive order "shows the federal government is leading by example" and "sends a signal that distracted driving dangerous," he added. Obama's executive order, signed Wednesday night, also bars federal workers from texting with any government-owned electronic equipment while they are driving, and bars any texting while driving their own privately owned vehicles while on official government business, LaHood said. But LaHood was noncommittal about proposed laws, including a U.S. Senate bill that would require states to ban texting while driving or face partial loss of federal highway funding. But LaHood seemed to focus on drivers' personal responsibility as his key message. "Driving while distracted should feel wrong, just like driving without a seat belt or drinking," LaHood said. "We are not going to break all bad habits, but will raise awareness." LaHood said driving while distracted from using a cell phone or texting is "personally irresponsible and socially unacceptable behavior, but in the end we won't make the problem go away by just passing laws ... We cannot legislate behavior to get results to improve road safety." "People need to use common sense and show common decency to other drivers," he said. LaHood showed a willingness to work on legislation, saying, "We will worth with Congress and state and local governments to ensure than the issue of distracted driving is appropriately addressed." He also said "high visibility enforcement" of drunk driving and seat belt laws had been effective and could work with distracted driving and related laws.

He concluded with unprepared remarks, calling distracted driving "an epidemic" and referring to the summit as a "tremendous start ... that will lead all of us to save lives and save injuries." At the start of the conference, LaHood released new information that said nearly 6,000 people died in the U.S. in 2008 in crashes involving a distracted or inattentive driver, about one-sixth of the total number of deaths, or about 37,000. LaHood and several of the panelists who spoke urged parents to restrict their teenage children from using cell phones while driving. Adrian Lund, president of the Insurance Institute for Highway Safety, cast a blunt criticism of such efforts, citing years of research. "It would be wonderful to have training programs for teens to recognize the risks they take [by texting while driving], and change their driving dramatically.," he said. "But our experience with education programs for teens or even ticketed drivers who take remedial training ... is that essentially the programs have no effect," Lund said. "What they learn is to avoid tickets, but not typically to avoid crashes." Lund mimicked calls by several experts at the summit to find new methods that can reduce crashes from distracted driving. "We need to find out what works ... All this education doesn't do much good," he said. But the value of specialized training programs to teach the dangers of distracted driving came under question by some of the assembled experts.

Citrix desktop virtualization push: any device, any location

Citrix on Monday said its latest desktop virtualization software will give users access to high-definition desktops from any location and from just about any device, including PCs, Macs, thin clients, laptops, netbooks and smartphones. The latest version offers a range of server-and client-side virtualization options, including offline desktops hosted in local virtual machines; desktops hosted on blade PCs; hosted desktops based in virtualized servers; and hosted shared desktops. "Traditional PCs were designed for a very different world," Raj Dhingra, XenDesktop general manager, said during a press conference Monday. "Today, the world is flat and small. Citrix is betting that Windows 7 will drive a new wave of desktop virtualization adoption, and is releasing XenDesktop version 4 to take advantage of these expected new users.

We need to work in entirely different ways than before. Now it says XenDesktop with its accompanying FlexCast delivery technology is Citrix's first product "to support every major desktop virtualization model in a single, integrated solution." Citrix said XenDesktop will support high-definition graphics for all users with its HDX technology, which has been improved with support for flash multimedia, 3D graphics, webcams and VoIP, with optimized delivery to branch offices over WANs. Citrix claims that HDX requires 90% less bandwidth than competing technologies. A traditional PC that is locked to an office or a laptop is too confining." 13 desktop virtualization tools Citrix hinted at its all-devices strategy earlier this year when it brought virtual desktops and applications to the iPhone. XenDesktop 4 will be generally available Nov. 16 for prices ranging from $75 to $350 per user. The desktop virtualization market has lots of room for growth.

Customers using XenApp, Citrix's application virtualization technology, will be able to trade up to XenDesktop with discounts of up to 80%. Citrix is also enabling centralized management of virtual desktops and applications by integrating XenApp with XenDesktop, the company said. Fewer than 10% of data centers worldwide have virtualized desktops, according to ITIC lead analyst Laura DiDio. Citrix, Microsoft and VMware are all going after the virtual desktop markets, although surveys show mixed results when comparing the vendors. Thirty-one percent of customers plan to virtualize in 2010, according to an ITIC poll of 400 corporations. According to ITIC, 41% of companies using desktop virtualization went with Citrix, compared to 28% for Microsoft and 16% for VMware.

Citrix said XenDesktop 4 contains 70 new features to enhance performance and security. But when measuring by deployed seats, VMware has about a two-to-one lead over Citrix, according to Burton Group analyst Chris Wolf. But the key is delivering the right type of desktop based on users' varying needs, the company said. As many as 500 users can be accommodated by a single server in this model, according to Citrix. For example, task workers who share a similar set of applications may be best served by a shared, server-based virtual desktop, Citrix said. "This model gives each user a standardized, locked-down desktop ideally suited for jobs where user customization is not needed or desired," Citrix said.

By contrast, office workers who need more personalized desktops may be best served by a virtual desktop infrastructure model in which each desktop is a dedicated virtual machine. Blade PCs in the data center are ideal for delivering high-end applications to "power users," Citrix said. This model supports about 60 to 70 desktops per server, according to Citrix. Another option lets companies stream desktops to each user's device, which lets the user device run the desktop locally while letting administrators centrally manage the operating system, applications and data. The virtual applications can run offline, making them popular with mobile users, the company said. "By centralizing apps and delivering them as an on-demand service to existing desktops, this option offers many of the ROI and management benefits of a fully virtualized desktop with minimal setup costs, making it an ideal starting point for customers new to desktop virtualization," Citrix said in its XenDesktop announcement.

But for companies just starting out with virtualization, the simplest option may be to deliver virtual applications to traditional PCs, Citrix said. Follow Jon Brodkin on Twitter: www.twitter.com/jbrodkin

US company burned by China Web filter plans rival product

A U.S. company whose software code was allegedly stolen in China by a controversial, government-backed Internet filtering program will hit back by launching a rival product for a low price in China, the company said late Sunday. The Solid Oak program, called CyberSitter and targeted at parents, will be offered in languages including Chinese in a version due out next month. Solid Oak Software, which has said its code was copied in a program that China ordered be bundled with all new PCs, is exploring ways to offer its own Web filter for free or at a very low price in China, company President Brian Milburn, said in an e-mail.

A Chinese version of the product would compete with Green Dam Youth Escort, the program that Solid Oak says copied its code and that China originally ordered PC makers to include with all new computers sold in the country from July this year. But under heavy pressure from foreign PC makers and the U.S. government, China indefinitely postponed the mandate just hours before it was set to take effect. The Chinese government had paid the program's developers to allow all PC buyers to use the software for free for one year. Major PC makers including Lenovo and Acer began bundling Green Dam with new PCs until this month. The program also used blacklists apparently lifted from Solid Oak's software, according to the company and a group of U.S. researchers.

The program, which China said was meant to protect children from online pornography, was also found to block politically sensitive material such as negative references to a former Chinese president. One file found in the Chinese program contained an encrypted version of a years-old Solid Oak news bulletin, according to the researchers. Green Dam came under fire for concerns about system stability in addition to user privacy and freedom of speech. Solid Oak, which is based in Santa Barbara, California, is preparing legal action against PC makers that shipped Green Dam, though an update to the program in June removed some of the allegedly infringing elements. One Beijing high school recently removed the program from its computers after finding that it conflicted with software used for grading and attendance tracking.

Bryan Zhang, general manager of Jinhui Computer System Engineering, one of the designers of the Chinese software, declined to comment on the allegations of code theft. Green Dam "is a conglomeration of whatever components [the developers] managed to steal ... or otherwise appropriate from various sources, and duct tape together in the form of an alleged piece of software," Milburn wrote in his e-mail. "They should be utterly humiliated, not just because they stole much of the core functionality, but even more so because they intentionally inflicted such a miserable product on a population of innocent computer users," Milburn wrote. The new Solid Oak product will have a Chinese user interface available and a filtering function that the company reworked after much of its old proprietary code appeared online. That is the ultimate goal," company spokeswoman Jenna DiPasquale said in an e-mail. The filtering will be entirely URL-based, avoiding the need to translate keywords into Chinese. "We are working on a way to release it for free.

EU chides Oracle over probe of Sun deal

Europe's head of competition has criticized Oracle for what she characterized as a lack of cooperation over the investigation of Oracle's planned acquisition of Sun Microsystems, a spokesman for the European Commission said. Kroes said the Commission was willing to move quickly toward a final decision but "underlined that a solution lies in the hands of Oracle," according to the spokesman. In a meeting with Oracle President Safra Catz in Brussels on Wednesday, Competition Commissioner Neelie Kroes "expressed her disappointment that Oracle had failed to produce, despite repeated requests, either hard evidence that there were no competition problems or, alternatively, proposals for a remedy to the competition problems identified by the Commission," a Commission spokesman said.

An Oracle spokeswoman said the company declined to comment. The Commission said it was concerned about Oracle, the world's top seller of database software, taking ownership of MySQL, the leading open-source database, which Sun acquired last year. Oracle's proposed US$7.4 billion Sun acquisition was approved by U.S. regulators in August, but two weeks later the Commission announced it would launch an investigation of the deal, citing "serious concerns" about its effects on competition in the database market. Oracle had hoped to complete its acquisition of Sun by now, but the Commission's probe, which could last up to 90 days, has held up the deal and may not be completed until January. Oracle CEO Larry Ellison said last month that Sun is losing $100 million a month while it waits for the deal to close. Meanwhile Sun's sales have been declining as rivals IBM and Hewlett-Packard take advantage of the uncertainty around Sun's business with aggressive migration plans.

He has also asserted that Oracle's database competes with Microsoft's SQL Server and IBM's DB2 products, and not with MySQL. Sun announced a big round of layoffs yesterday, citing the additional time it is taking to close the deal with Oracle. Oracle is widely expected to make deeper job cuts if the deal closes. The company said it will lay off 3,000 workers around the world over the next 12 months.

Sun, Oracle chiefs vow: Sun technologies will live on

Sun Microsystems Chairman Scott McNealy and Oracle CEO Larry Ellison both took the stage at the Oracle OpenWorld 2009 conference Sunday evening to offer reassurances that Sun technologies will not go away should Oracle complete its planned acquisition of Sun. As a matter of fact, combining Sun's research and development budget with Sun's presents  "one of the great R&D opportunities of all time," McNealy said. [ Find out why some user are nervous about Oracle owning MySQL. | Relive Sun's storied history in InfoWorld's slideshow "The rise and fall of Sun Microsystems." ] Oracle, for example, intends to spend more money developing Sparc than Sun does now, he said. "That's a good sign for Sparc innovation," McNealy said. "You look at the core technologies that we're developing: They're going to find a nice home in this next chapter," he said, referring to merger. From Java to the Solaris OS to the Sparc CPU platform and Sun storage technologies, Oracle will be good for all of them, the executives stressed at the San Francisco event.

Ellison, for his part, took exception with IBM for suggesting Oracle was not committed to Sun's wares, particularly Sun hardware. "We're looking forward to competing with IBM in the systems [business] and we think the combination of Sun and Oracle [is] well-equipped to compete successfully against the giant," Ellison said. The challenge would be part of a new ad campaign. Ellison said he would give $10 million to anyone - any major company or enterprise - whose existing database application would not run at least twice as fast on Sun gear. But he acknowledged Oracle recently was fined $10,000 for running a recent ad comparing Sun and Oracle to IBM, in which the benchmark evidence had not yet been documented.  His explanation cited overzealousness on Oracle's part. "If IBM wants to compete, we're happy to compete and we made a series of commitments," Ellison said. And with a little more investment, it could be even better," said Ellison. Solaris, meanwhile, is the leading enterprise OS and the leading OS for running the Oracle database, he said. "We said we're not selling the hardware business and we think Sparc is a fantastic technology.

Oracle also plans to increase its investment in the open source MySQL database, Ellison said. MySQL currently is owned by Sun. He added that Oracle already has continued to invest in the Innobase technology it acquired that serves as the transaction engine in MySQL. There had been speculation that Oracle bought Innobase "to kill it," but that has not happened at all, Ellison stressed. IBM had been a rumored suitor for Sun prior to Oracle forging a deal to buy the company nearly six months ago. McNealy said efforts to close the sale were proceeding with authorities.

The sale remains held up by the European Union, which is concerned over commercial database giant Oracle owning MySQL.  Recently, Ellison said Sun has been losing $100 million a month waiting for the sale to close. To argue on behalf of Oracle's commitment to Java, McNealy brought Sun Vice President James Gosling, considered the father of Java, onstage. The JSR process is used to submit modifications to the platform to the community at large. Oracle's product mix features Java and the company has  participated in numerous Java Specification Requests (JSR), Gosling said. Oracle, though, has been a bit unprepared for the volume of activity in the Java world, Gosling, said. "We do 15 million downloads of the JRE (Java Runtime Edition) a week on average," he said.

He lauded recent Sun-Oracle performance benchmarks and noted the recently introduced Sun-Oracle Exadata Database Machine Version 2, which combines Sun hardware with Oracle's database and storage management software.  Fowler also announced the Sun Storage F5100 Flash Array, which integrates 1.6TB of Flash storage into a device that looks like a server. Also appearing onstage at OpenWorld was John Fowler, Sun vice president of system. "My team is excited about working closely with Oracle because we have been working with Oracle now [for] what's measured in decades," Fowler said. McNealy cited a long list of Sun accomplishments, including the Network File System, the various editions of Java, Sparc's being the first 64-bit volume RISC architecture, and the company's contributions to open source, including its use of Berkeley Unix. "We were the Red Hat of Berkeley Unix," he said. In a Top 10 list entitled "Top 10 Signs Engineers Have Gone Wild," McNealy  took potshots at Apple for not supporting Java on its iPhone. "Friends don't let friends type on an iPhone especially since it doesn't run Java. In a brief interview after the evening presentation, Tim Bray, Sun's director of Web technologies, would not comment on whether the Sun name would go away as part of the merger with Oracle or whether Sun would become a division of Oracle. Are you listening, Steve," McNealy said, referring to Apple CEO Steve Jobs.  "[The iPhone is] the only device on the planet that doesn't run Java." He also ridiculed President Barack Obama's winning of the Nobel Peace prize last week, without mentioning the President by name.

Follow the latest trends for developers, open source, and database management at InfoWorld.com.   One of the engineering signs on McNealy's list pertained to a Nobel prize for a gas mask bra, leading McNealy to follow the reference with a comment that such an award was "no more ridiculous than some other Nobel prizes that I've heard of." This story, "Sun, Oracle chiefs vow: Sun technologies will live on," was originally published at InfoWorld.com.

Acresso who? Macrovision spinoff changes name, again

Under a legal threat from another software firm with a similar name, Acresso Software Inc. is changing its name to Flexera Software after just 19 months. Acresso sells software such as software its installation utility, InstallShield, and software license manager, FLEXnet, to software vendors and enterprises. The company will officially announce the change next Tuesday, but had already notified partners and customers on Thursday. It was spun out of Macrovision Corp. after the unit was acquired by venture capital firm Thoma Brava Cressley in April 2008. Macrovision retained the digital rights management (DRM) apps for which it is best-known.

Acresso, which the company said was derived from the Latin word "Cresco" for "to grow, increase" faced a "challenge" on its name from ERP software maker Agresso Software , said Randy Littleson, senior vice-president of marketing for Acresso. "Our executive team decided that there were better ways to invest our time and money, and that we didn't need this distraction," Littleson said. "The action we're taking will let us avoid a potential lawsuit." Acresso did not immediately return an e-mailed request for comment. It changed its company name in July to Rovi Corporation. Acresso was founded in 1980 and has annual revenue of about $475 million. That dwarfs Acresso, which has 375 employees and annual revenues of $115 million. It also has 3,500 employees at 16 offices globally.

Flexera will be the fourth name in five years facing long-time users of InstallShield, which was bought by Macrovision in 2004. Perhaps predictably, early public reaction to the new name tended towards the sarcastic. "As if the makers of InstallShield hadn't already done enough damage to their brand, let's just go change names yet again!" wrote Christopher Painter, an InstallShield consultant, on his blog yesterday. "Acresso Software is becoming Flexera Software for no apparent reason. Littleson said the company considered changing its name to Installshield, being that it is its best-known product, but ultimately came to the conclusion that it didn't represent the breadth of its application stable. Go ahead. #ScrambleMyBrands," another tweet said. He dismissed the notion, brought up by some bloggers , that the new name will cause legal trouble or just confusion with a solar and wind power company Flexera. "We're quite aware of it. We think this is very different, compared to when it was two software companies." That's one of the reasons why it's Flexera Software," he said. "How similar are we to an energy company?

China's Alibaba expects India joint venture this year

Top Chinese e-commerce site Alibaba.com aims to announce an Indian joint venture this year as the company expands its global footprint, it said Friday. A deal in India, where Alibaba.com recently surpassed 1 million registered members, would be the latest in the site's efforts to grow abroad. "I've got a lot of confidence in India," said Jack Ma, CEO of Alibaba Group, the parent company of Alibaba.com. Alibaba.com is in talks with an Indian reseller about forming a joint venture, CEO David Wei told reporters at a briefing.

Alibaba.com is a platform for small and medium businesses to trade everything from lumber and clothes to iPods and PC components. Alibaba.com already works with Indian publishing company Infomedia 18, its likely joint venture partner, to promote its platform in the country. Its main member base is in China, but the site also has 9.5 million registered users in other countries and facilitates many cross-border trades. The site also has a joint venture in Japan and recently launched a major U.S. advertising campaign to attract more users there. Ma said Alibaba knows it needs to "do something" in Latin America as well. Ma and other top Alibaba executives visited the U.S. early this year for meetings with potential partners including Amazon.com, eBay and Google.

When asked if the company would also seek to expand in Eastern Europe, Ma said, "I will be there." Alibaba will not hold a majority stake in joint ventures it forms, instead taking a share similar to the 35 percent it has in its Japan operation. "Our global strategy means partner with local people," Ma said. "We want partners and we want partners to control their business." Users place total orders of more than US$200 million each day on the Alibaba.com international platform, Wei said. About 50 percent of those orders go to Chinese exporters, he said.

Apple to launch tablet in February 2010, asserts new report

Apple will launch a tablet-style device sporting a 9.6-inch display in February 2010, according to sources cited by a Taiwanese Web publication today. The tablet will feature the 9.6-inch screen, the multi-touch user interface made famous by the iPhone and iPod Touch, and a processor created by P.A. Semi, the Santa Clara, Calif. microprocessor design company that Apple purchased over a year ago . Apple's device will also reportedly include a HSPDA (High Speed Download Packet Access) module. The Taiwan Economic News said industry sources have claimed several component suppliers are building parts for an upcoming Apple tablet computer, which will launch in about five months.

HSPDA is the 3G cellular data protocol used by AT&T in the U.S.; AT&T is currently Apple's exclusive carrier partner in the United States. Verizon uses the EVDO Rev. T-Mobile, which is an Apple partner in Germany and Austria, also uses HSPDA in the U.S. If true, it would put the brakes on rumors that Verizon , which has supposedly been in talks with Apple, will replace AT&T on the computer maker's A-list. A (Evolution-Data Optimized) data protocol instead. Talk of such a device, which some analysts have dubbed an "iPod Touch on steroids," has been both brisk and long-running. The selling price for Apple's tablet, said the Taiwan Economic News 's sources, will be between $800 and $1,000. This is far from the first time that tales of an Apple tablet have been told.

In May, for example, Wall Street analyst Gene Munster, of Piper Jaffray, used circumstantial evidence and checks with Asian component suppliers to bet that Apple would release a $500-$700 tablet next year. By now, although the continuing chatter makes some sense, it's getting harder to swallow the gossip, said Ezra Gottheil, an analyst with Technology Business Research who covers Apple. "It makes sense, it hangs together, sure," said Gottheil today. "But I'm starting to think that this is just a bunch of people believing each other, or maybe even an Apple disinformation campaign." What struck Gottheil today was the specificity of the report out of Taiwan. "The sources named the companies and they named the components," he said. "That's not how Apple does business." Rather, Apple goes to great lengths to make sure its suppliers keep mum about the work they're doing for the company, Gottheil maintained. "The signs are there that it makes sense for Apple to be doing something in the 'bigger than an iPod Touch' space, but I'm not sure this report adds any evidence to those signs," Gottheil said. "It's almost starting to look like people [are] just playing with the idea or even having fun with it." Tablet rumors picked up significantly just prior to Apple's annual developers conference in early June, but analysts then predicted - correctly, as it turned out - that the company would not unveil such a device at the time.

Avaya wins Nortel enterprise business for $900 million

Avaya has emerged as the winning bidder for Nortel's enterprise business, reportedly beating out Siemens Enterprise Communications over the weekend. Avaya will also contribute an additional pool of $15 million for an employee retention program. The firm will pay $900 million for the unit, Nortel's Government Solutions group and DiamondWare Ltd., a Nortel-owned maker of softphones.

That price is nearly twice what Avaya was initially said to be buying the enterprise business for back in July before auction bidding kicked in. Telecom carrier Verizon, however, is expected to contest the sale on the grounds that Avaya does not plan to retain customer support contracts between Nortel and Verizon. Slideshow: The rise and fall of Nortel Avaya has sought Nortel's enterprise business in hopes of boosting its share of the enterprise telephony and unified communications markets, and getting more customers to migrate to its IP line of communications products.  The sale, expected to close later this year, is subject to court approvals in the U.S., Canada, France and Israel as well as regulatory approvals, other customary closing conditions and certain post-closing purchase price adjustments. Nortel is confident the sale will go through without any snags. "We do not expect the Verizon interaction to impact court approval or the close of this deal," said Joel Hackney, president of Nortel Enterprise Solutions. "We will continue to go forward in supporting customers." Hackney would not say whether Nortel is engaged in the negotiations between Avaya and Verizon on the future of certain customer support contracts, mentioning only that Nortel supports Verizon as a customer as well as the carrier's customers. Nortel customers hope the deal works out in their interest. "Nortel earned the trust of our user group members by delivering innovative, reliable communications solutions and ensuring high-levels of service and support, " said Victor Bohnert, Executive Director of the International Nortel Networks Users Association, in a prepared statement. "With the announcement of today's purchase by Avaya, we look forward to extending that relationship forward to serve the business communications needs of our constituency base across the globe." Nortel will seek Canadian and U.S. court approvals of the proposed sale agreement at a joint hearing on September 15, 2009. The sale close is expected late in the fourth quarter. Hackney also said there were two bidders for the enterprise unit but would not identify the second suitor.

In some EMEA jurisdictions this transaction is subject to information and consultation with employee representatives. As previously announced, Nortel does not expect that its common shareholders or the preferred shareholders of Nortel Networks Limited will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

Lenovo founder shares slogans, tells tales of 1980s China

The chairman of Lenovo, the world's number four PC maker, shared Chinese revolution-spirited slogans and the unlikely story of his company's growth out of a government-managed economy in a motivational speech to Chinese small business owners on Friday. Lenovo faced tough odds even though its founders were from the Chinese Academy of Sciences, a Chinese state-controlled institute for national research projects. Liu Chuanzhi, one of 11 former government researchers who founded the predecessor to Lenovo in 1984, recalled how the company fought through trade barriers, high component prices and domination by foreign brands in a talk that highlighted how fast China's economy has grown in the last three decades. "In 1993 almost the whole market was foreign-branded computers," Liu said at the forum for small and medium businesses in Hangzhou, a scenic city in eastern China.

The academy gave the company founding capital of 200,000 yuan, or about US$30,000 today. Things only grew worse when the company was scammed out of two-thirds of the money, he said. "When we came out, we not only lacked funds but also had no idea what to do," Liu said. That sum, far from enough, would not have been enough to buy three computers in China in the 1980s, Liu said. Lenovo, formerly called Legend Group, was founded early in China's process of market economic reforms and had to work in a tightly regulated environment. The low quality of components such as hard drives in China also hindered the company, he said. China tried to protect domestic PC makers in the 1980s by charging a massive 200 percent tariff on foreign computers, said Liu. "The result of this protection was that foreign computers were very difficult to get into China and could only be smuggled, but China also could not make its own computers very well," he said.

Lenovo's first PC did not reach the market until 1990. Lenovo struggled with low margins even as it built market share against foreign brands like IBM and Compaq in the 1990s. Government regulation also continued to slow the industry's growth. Lenovo's global presence gained a huge boost when it bought IBM's PC unit in 2005. The company's sales in developed markets have since slumped in the global economic recession and it has restructured to bring its focus back to China and other emerging markets. Chinese residents had to register with the government to become Internet users even late in the decade, said Liu. Lenovo today is the top PC vendor in China. Liu also emphasized the importance of company culture, describing Lenovo's as an example. "Make the company's interests the top priority, seek truth in forging ahead, take the people as the base," Liu said. To succeed like Lenovo, companies must "love to battle, know how to battle, and conduct campaigns with order," Liu said, using language reminiscent of "The Art of War," an ancient Chinese book on military strategy by Sun Tzu.

Chinese president Hu Jintao has promoted the slogan "take the people as the base" as a part of socialist theory. Liu attended a Chinese military college in the 1960s and worked on a Chinese farm during the Cultural Revolution, a chaotic period when many graduates were sent to the countryside for re-education.

NASA: Orbiter spots ice in Martian meteor craters

A NASA spacecraft orbiting Mars has spotted exposed ice in five different spots on the Red Planet. NASA scientists said they found the exposed ice inside craters , caused by meteors slamming into the Red Planet last year. After years of speculation and last year's intensive hunt for water and other elements that could support life , NASA scientists reported today that they've found frozen water just a few feet below the planet's surface. "This ice is a relic of a more humid climate from perhaps just several thousand years ago," said Shane Byrne of the University of Arizona, Tucson, during a press conference today.

Scientific instruments onboard the Mars Reconnaissance Orbiter found that the icy craters range from 1 1/2 to 8 feet deep. The images are sent back to Earth where scientists pour over them, comparing any new spots, or possible craters, to photos taken earlier. The exposed ice first appeared as bright patches and then darkened in a matter of weeks as the ice vaporized in the Martian atmosphere. "Craters tell us a lot about the object on which they occur," said Ken Edgett, a senior staff scientist at Malin Space Science Systems. "They're great probes of what lies beneath the surface." In the average week, the orbiter's high-resolution camera captures more than 200 images of Mars, covering an area greater than the size of California. Because of the area where the ice was discovered, scientists said today that if NASA's Viking Lander 2, which worked on the surface of Mars in 1976, had dug four inches deeper than it had at the time, it would have struck ice. Before NASA's Phoenix Mars Lander froze to death in the long, cold Martian winter last year, the robotic vehicle dug up and analyzed soil samples and verified the existence of ice on Mars . The found ice proved that water - a key element to support life - exists there.

Going thin and bling, HP tries to strike Envy with latest laptops

Hewlett-Packard Co. introduced a half-dozen new notebook PCs today, including a luxury line that bears a striking resemblance to Apple Inc.'s laptops. Overall, two things unify the new models introduced by the world's largest notebook vendor: a skinny, sub-inch profile, and an overt emphasis on design, including metallic shells and imprinted or etched designs on the cases. HP also introduced a thin-and-light Pavilion consumer notebook with an aluminum shell starting at $549, and a new Mini netbook powered by Nvidia Inc.'s ION graphics. Take the two new high-end notebooks HP is calling its Envy line.

The result, as the picture below and PC World's reviewer both confirm, is a machine very similar to Apple's unibody aluminum-encased MacBook Pros. The Envys come encased in sleek gunmetal gray aluminum-magnesium alloy shells, use a low-profile, chiclet-style, backlit keyboard, sport a long-running but nonremoveable lithium-polymer battery, and a bright (410 nits) widescreen. The Envy 13, with a 13-in. screen, is 0.8-inches thick and weighs 3.74 pounds. He likens the strategy to the car industry. "The Envy is like a Lexus, a luxury car that is still affordable to the upper-middle-classes," Kay said. It starts at $1,699. The Envy 15 starts at $1,799. Fully loaded models of either will cost more than $2,000. Roger Kay, an analyst with EndPoint Technology Associates Inc., is not bothered by HP's strategy of aping Apple's design or its prices. "More than any other vendor, HP has narrowed that gap" with Apple, he said. Dell Inc.'s forthcoming ultra-thin (0.4-inches) Adamo, by contrast, is likely to be priced more "like a Ferrari - only a few people are going to be able to buy them." Besides the Envys, HP rolled out the Pavilion DM3 consumer notebook.

It also rolled out a new business notebook, the ProBook 5310M, which starts at $649. HP also introduced a special edition of its HP Mini 110 netbook imprinted with a picture created by a noted European design firm. Tipping in at 1-in. thick and 4.2 pounds, the aluminum-clad Pavilion starts at $549 when equipped with an AMD processor. The HP Mini 110 by Studio Tord Boontje will start at $399. HP also introduced the new HP Mini 311. It comes with a larger-than-average 11.6-inch screen powered by Nvidia's ION multimedia platform. Shim hailed HP's ongoing prowess at taking high-end trends and translating them into products that work at different price points. The Mini 311 also starts at $399. That pricing appears to be lower than other ION-equipped netbooks, notes Richard Shim, an analyst with IDC Corp.

HP has been "pretty successful" going "after a wide audience, from entry-level to high end," he said. "Apple, I would argue, is still just high-end." Most of the notebooks will become available on Oct. 22 the day that Windows 7 launches, though buyers can reserve them immediately via HP's Web site.

Ballmer flogged, other execs over company meeting messages

Microsoft's acid-tongued covert blogger Mini-Microsoft offered up a report card on Thursday's all-company meeting at Seattle's Safeco Field, giving CEO Steve Ballmer   two zeros and accusing business division president Stephen Elop of "sucking the life out of the stadium." While Microsoft employees provided tepid tweets from the company meeting that pulled 20,000 of them into the baseball stadium and jammed AT&T's cellular network, Mini-Microsoft looked for signs that the company was tuned into the job at hand, understood the impact of thousands of layoffs over the past year, and how Microsoft might stem inefficiencies at the company. He must acknowledge it starkly. The evolution of Microsoft Windows Seven things to love, hate about Windows 7 CEO Ballmer was the first to disappoint, according to Mini-Microsoft, who hoped that the company leader would "come out front first, before any other Microsoft leadership, to speak the truth about the last year and where we are now. We had layoffs.

Ballmer got zeros on both counts. We had inefficiencies." Ballmer, however, didn't appear until the end, slapping hands with employees sitting close to the stage and tearing an iPhone out of an employee's hands and pretending to stomp on it. Elop faired even worse, drawing Mini-Microsoft's wrath for crushing the blogger's hope for short, sweet and powerful demos. "Elop. Baby. Steven.

Dynamics. What did I do to you to have that forced down my eyeballs? ... Geez. XRM. Really? Did anyone give you advice that this was a bad idea? If not, you're seriously lacking good reports willing to give you honest feedback." Mini-Microsoft had blogged before the confab on six hopes for the company meeting.

If so, keep listening to them. In the grading system each hope represented a point and when all was said and done the score was 1.75. "Hey, almost one-third realized," wrote Mini-Microsoft. The other hopes included "practical vision," which Mini-Microsoft graded out at .5, giving Craig Mundie, chief researcher and strategy officer, and Ray Ozzie, chief software architect, props for focusing on "practical aspects of product groups, research, and inbetween the technology transferring power of the labs groups."Mini-Microsoft's hope for short, sweet and powerful demos earned a .5. "Robbie Bach [president of the entertainment and devices division] did okay, but I can't say the demos blew me away," wrote Mini-Microsoft. Ballmer's zeros came from not coming out first to "set the context for the meeting in light of a pretty awful FY09 Q3 and Q4," and one for not giving a serious wrap up. The grade for Mini-Microsoft's hope on getting a good peek at new stuff came up .75. He called looks at Bing, Zune HD and new Laptop Hunter commercials "conservative." And the hope to see a new review system got a zero. And Mini-Microsoft had kind words for Dr. Qi Lu, formerly of Yahoo and now running Microsoft's online services group. "[He] might be my favorite techie right now.

On the up side, Mini-Microsoft said he was surprised to hear COO Kevin Turner, who opened the meeting, admit that the company had over hired. I was impressed with what he's brought together for Bing and what's coming and how he has focused the team and adopted some of the new technology that Satya [Nadella, senior vice president of research and development] was showing. Ever?" Who the hell thought we'd be feeling so good about our search decision engine?

Court shuts down sites promising free gov't grants

A U.S. district court has shut down several Web sites that falsely promised they could help consumers get free government grants, the U.S. Federal Trade Commission announced.

The Web sites advertised an "easy to use" program called Grant Connect that supposedly would help people "instantly find the grant that's right" for them. The sites used pictures of U.S. President Barack Obama, Vice President Joe Biden and the American flag to give the false impression that they were connected to the government, the FTC said.

The FTC charged the companies with using bogus testimonials, failing to disclose the actual cost of their products, bundling multiple products together for sale without adequate disclosures and debiting consumers' bank accounts on a recurring basis without permission.

Instead of connecting customers to government grants, the Web sites provide "outdated, useless" information and "worthless" grant-writing tools, the FTC said. Few grants are available to consumers who sign up for the program, and those that are available require applicants to meet strict eligibility requirements, the agency said.

The U.S. District Court for the District of Nevada issued a temporary restraining order July 28. Since then, five of the 12 defendants in the case agreed to a preliminary injunction halting these practices until the matter is decided at trial, the FTC said.

The court has scheduled a preliminary injunction hearing for the remaining defendants for Sept. 11. The FTC is seeking to permanently stop these practices and force the companies to return their ill-gotten gains so the funds can be used to reimburse consumers.

The Web site operators sell several products, including Grant Connect, which they describe as "a unique, consumer-friendly U.S. government grant program that delivers all of the tools for the consumer to search multiple databases, write grant proposals, and deliver polished plans." The companies said customers would be charged less than US$3, but by bundling other products and services, such as identity theft protection services, credit offers and purported health benefits plans with their offer, they charge customers as much as $70 per month, the FTC said.

Using an affiliated network of Web sites, including Grantconnectoffer.com and others, the operators made claims such as, "Grant Connect - $15 Billion of Free Money Available"; "Over $10 Billion Issued in 2009 Already"; and "EASY TO USE PROGRAM: Instantly find the Grant that's right for you!"

The Grant Connect site features supposed testimonials, including photos of people who supposedly got grants from the company, including one that states, "It's so easy! I got my first grant for $300,000. All I have to do is search and click."

For a time, the site featured a photo of Obama and Biden standing in front of an American flag, next to the Grant Connect logo and a caption that read, "CHANGE Is Here! $15 BILLION in FREE Government MONEY for you!"

The Web sites contain some disclosure language about other products in small type, the FTC said. Few consumers realize they will be charged monthly for services such as "SmartHealth Gold medical and lifestyle benefits" and "VComm International and Long Distance Calling Service" unless they cancel these memberships, the FTC said.

The FTC charged the Grant Connect defendants with violating federal law by making deceptive representations regarding Grant Connect; failing to adequately disclose the material terms and conditions of their offers; and violating the U.S. Electronic Funds Transfer Act by debiting consumers' bank accounts on a recurring basis without their authorization.

The FTC complaint named the companies Grant Connect, Global Gold, Horizon Holdings, O'Connell Gray, Pink, Vantex Group and Vertek Group, as well as Rachel Cook, manager of Vantex and Vertek; James Gray, managing member of Grant Connect, Horizon Holdings and O'Connell Gray; Steven Henriksen, president and owner of Global Gold; Juliette Kimoto, owner of Vertek and general partner of Pink; and Randy O'Connell, managing member of Horizon Holdings and O'Connell Gray.

The five defendants who agreed to the preliminary injunction entered by the court on Tuesday are Grant Connect, Horizon Holdings, O'Connell Gray, James Gray and Randy O'Connell.

Google defends Google Apps security

Google Inc. this week came swinging at critics who have called on the city of Los Angeles to re-think its plan to implement the Google Apps hosted e-mail and office applications due to privacy and security concerns.

In an interview yesterday, Matt Glotzbach, director of product management for Google Enterprise, said the angst voiced by consumer groups and others about the Los Angeles project is overstated and based on incomplete information. In fact, he contended that transitioning the applications to Google will strengthen the security of the city's data, and better maintain its privacy.

"From what I know of the city's operation, this is a security upgrade," Glotzbach said. "Those who may be unfamiliar with cloud computing see this as a security risk simply because it is new and because it is something different," he said. Glotzbach said he believes that at least some of the concerns raised originated from Google's competitors.

Meanwhile top managers at the Los Angeles Information Technology Agency (ITA), which oversees technology implementation sin the city, yesterday said the city is still committed to implementing Google Apps. The agency insisted that provisions are in place for addressing the security and privacy issues raised by critics. A spokesman for Mayor Antonio Villaraigosa said the City Council will sign off on the project only after it is assured that the privacy and security concerns have been properly addressed.

The controversy centers on a plan by the City of Los Angelesto replace its Novell GroupWise e-mail and Microsoft Office applications with Google Apps. Under the $7.25 million plan, the city will transition about 30,000 users to Google's e-mail and office productivity products by the end of December 2009.

City officials have said that they expect the move will save Los Angeles more than $13 million in software license and manpower costs over the next five years. The plan is expected to be approved by city council members as early as next week and the implementation process is scheduled to begin soon thereafter. If approved, L.A. will become the second major city after L.A. to migrate its applications to Google's cloud infrastructure.

The migration would make Google, which hosts the servers running the applications, responsible for retaining and protecting sensitive health care and litigation data along with criminal and drug investigation records. Since the plan was proposed critics from various organizations, including the Los Angeles Police Department, the City Attorney's office and public interest groups have raised questions about the privacy and security implications of storing sensitive data in the cloud for access via the public Internet. The concerns received a fresh airing following the recent Twitter Inc. security breach caused by an attacker gaining access to a worker's e-mail on the Gmail system hosted by Google. Glotzbach yesterday contended that the concerns have been raised as part of an effort by some rivals and others to spread fear, uncertainty and doubt over the company's cloud computing service.

"There seems to be this sentiment that this was some secret, backroom kind of process," Glotzbach said. Instead, Google won the contract over 15 rival bidders largely because of the security and privacy controls in Google Apps, he added. In fact, as city officials reviewed the contract over the past eight months, Google engineers have been working with the city's technology team and police department representatives to understand and address security and privacy concerns, he said. Glotzbach claimed that Google Apps will offer better data protection than is current available for the city's applications for a number of reasons. For instance, having Google host and manage the applications means the city won't have to worry about installing new security patches, or expend the resources needed to implement them. Similarly, it's harder for hackers to launch attacks on hosted software because they won't know which server or data center is hosting the data, he said.

Botnets infect fewer computers in China

The number of botnets and of computers controlled by them in China has fallen in recent years, though the country remains a top host for the networks of compromised computers, according to the government and independent researchers.

Over 1.2 million computers in China were newly infected with software that enabled their control by a botnet last year, about one-third the figure for the previous year, according to a report published late last month by China's National Computer Network Emergency Response Technical Team (CNCERT).

That followed an equally steep fall from 2006, when the team estimated there were 10 million new infections in China.

The number of Chinese PCs in botnets has fluctuated in recent quarters but generally fallen, said Prabhat Singh, McAfee's senior director of Avert operations in the Asia Pacific. New infections remained steady between the first and second quarters at around 1.6 million, he said.

Botnets, or groups of computers controlled by an attacker, are often used to send mass spam e-mail messages and malware. They can also be used to launch distributed denial of service (DDoS) attacks, in which the PCs are all ordered to connect to a target server at once, overwhelming it with information requests and effectively shutting it down.

New bot infections have dropped in China partly because free anti-virus tools have appeared online, expanding their use by cost-sensitive Chinese PC users, said Zhao Wei, CEO of KnownSec, a Beijing security company.Protection for other PCs has come from Chinese companies offering anti-virus support for users of pirated Windows systems, Zhao said. A large portion of Chinese consumers and businesses run pirated copies of Windows XP, which can be easily bought at electronics markets across China.

Some Chinese companies are sending those users Microsoft's updates without including the Windows Genuine Advantage program, which blocks access to certain updates if a user's operating system does not validate, Zhao said.

China may still have more botnets than statistics show. The growing number of botnets controlled through Web servers, rather than through IRC (Internet Relay Chat) servers, may not be fully included in some counts, said Zhao.

Zhao's company last year found one Chinese server controlling a botnet of 4 million PCs, which could have included machines both in China and abroad, Zhao said. The botnet disappeared when Zhao's staff started tracking it, he said.

Botnets are usually much smaller, said Vu Nguyen, a McAfee Avert Labs researcher. Attackers usually keep them below 2,500 machines to avoid drawing attention by directing massive traffic, he said.

Chinese attackers sometimes rent their botnets out to customers, Nguyen said. Others advertise botnet setup services online for as little as 250 yuan (US$37), said McAfee's Singh.

CNCERT also found a drop in the number of servers controlling botnets in China. The number was 1,825 last year, sharply down from 6,660 the year before, according to the CNCERT report.

China ranks among the world's top spam generators and is home to some companies offering "bulletproof" hosting, in which domains are not closed down for activities like sending spam.

Groups ask FCC for changes in 'special access' fees

A group of public interest groups and regional telecom carriers has launched a new campaign to reform the fees paid to large telecom carriers for so-called special access to large-pipe connections between buildings and central switching facilities.

The new NoChokePoints coalition, launched Monday, has nearly 20 members, including Public Knowledge, Sprint Nextel, TW Telecom and the New America Foundation. The groups called on the U.S. Federal Communications Commission to reform the fee structure for special access to those large-capacity pipes owned by large carriers such as Verizon Communications and AT&T.

Reasonable special access rates are critical to broadband deployment across the U.S., members of the coalition said.

"Releasing the broadband economy from the chokehold these huge phone companies have on the special access market will be a catalyst for innovation and investment in the broadband marketplace, something we desperately need," Maura Corbett, spokeswoman for the coalition, said in a statement. "Every time you send an e-mail, withdraw money from an ATM, or use your wireless phone, your information travels on these high-capacity lines. Excessive pricing and other market abuses by these companies have long been an issue of concern at the Federal Communications Commission."

U.S. President Barack Obama, plus members of Congress and the FCC, have made broadband deployment a top priority, Corbett noted in a news release. "Frankly, it defies explanation that we are still fighting this market abuse," she said. "Huge companies like Verizon and AT&T control the broadband lines of almost every business in the United States."

USTelecom, a trade group representing large carriers, disputed the need for major changes in special access fees.

"These are the same old tired and discredited arguments we've heard for years, simply wrapped up in a new package," Walter McCormick Jr., president and CEO of USTelecom, said in a statement. "Most of this market remains under price controls. Those regulations have only been lifted where the FCC has determined there is adequate competition."

Verizon has an average of nine fiber competitors in each of its top 25 markets, and prices are falling for many AT&T customers, USTelecom said. The trade group also accused competitive telecom carriers of refusing to release market data to support their calls for special access reform.

But changes to special access would increase competition, said Ken Folderauer, public sector vice president at TW Telecom, a managed network services provider.

"In the current regulatory environment, policies often keep us from serving all of our customer's locations," he said in e-mailed comments. "Why? Because it's either too expensive for us to build our network to a remote location or we cannot purchase wholesale Ethernet services from the incumbent provider, either due to a lack of availability or because the incumbent carrier has prohibitive pricing."

The pricing leaves customers to "rely on antiquated ... solutions from the incumbent carrier - ultimately the consumer loses the ability to access new and innovative solutions that only Ethernet delivers, and we lose the opportunity to grow our business," he added.