Thursday, December 9, 2010

Hacktivists abandon Amazon attack

<!-- Embedding the video player --> <!-- This is the embedded player component -->
<!-- embedding script -->
<!-- companion banner --> <!-- END - companion banner --><!-- caption -->

'Coldblood', a member of the group Anonymous, tells Jane Wakefield why he views its attacks on Visa and Mastercard as defence of Wikileaks.

<!-- END - caption -->
<!-- end of the embedded player component --> <!-- Player embedded -->

Pro-Wikileak activists have abandoned plans to bring down the website of online retailer Amazon, and switched back to targeting PayPal.

The group Anonymous had pledged to attack the site at 1600 GMT, but have since changed their plans, saying they did not have the "forces".

The site was targeted because it withdrew services from whistle-blowing website Wikileaks.

In the Netherlands a teenager has been arrested in connection to the attacks.

The 16-year-old was arrested by a high-tech crime unit in The Hague after allegedly admitting to involvement in the targeting of the websites of two credit card companies, MasterCard and Visa.

A tool enabling computers to join the co-ordinated attacks against websites perceived to be "anti-Wikileaks" is now reported to have been downloaded more than 31,000 times.

However, security experts warned people to avoid joining the voluntary botnet.

A Twitter message issued by the group said Amazon was too big to attack successfully for now.

"We cannot attack Amazon, currently. The previous schedule was to do so, but we don't have enough forces," read one message on Twitter.

The activists instead instructed followers to attack PayPal, which has suspended the WikiLeaks account, which the organisation had used to collect donations.

A PayPal spokesman told Reuters news agency the company had detected an attack on the site.

'Operation Payback'

Activists are targetting using the Anonymous attack tool, known as LOIC. When a person installs the tool on their PC it enrols the machine into a voluntary botnet which then bombards target sites with data.

These distributed denial-of-service (DDoS) attacks are illegal in many countries, including the UK.

Social network Facebook confirmed that it had removed Operation Payback - as the campaign is known - from the site because it was promoting its attack tool.

Anonymous member Coldblood told the BBC that he did not understand how firms such as Visa and Mastercard have decided that Wikileaks is illegal.

"We feel that they have bowed to government pressure. They say Wikileaks broke their terms and conditions but they accept payments from groups such as the Ku Klux Klan," he told the BBC.

He said that he has not personally taken part in the recent distributed denial-of-service (DDoS) attacks but explained the motives of those who have.

"Start Quote

These Anonymous attacks are like riding a bull, they can change wildly and at a moment's notice"

End Quote Paul Sop Prolexic

"Everyone is aware that they are illegal but they feel that it is a worthy cause and the possible outcome outweighs the risk," he said.

He said such attacks were only one tactic in its fight to keep the information being distributed by Wikileaks available.

In a twist to the story it has emerged that Amazon, which last week refused to host Wikileaks, is selling a Kindle version of the documents Wikileaks has leaked.

Earlier attacks against Visa and Mastercard knocked the official websites of the two offline for a while and resulted in problems for some credit card holders.

The attacks have been relatively small so far mustering less then 10 gigabits per second of traffic, said Paul Sop, chief technology officer at Prolexic which helps firms to defend themselves against the type of attack being employed by Anonymous.

"What's really wreaking havoc with these enterprises is how often the attackers can rotate the attack vectors," he said. "We see the attack complexity being more devastating as the mitigation technologies enterprises use can't filter out all these permutations."

Defending against an attack typically involves analysis to work out which ones are being employed. A tactic that may not work well in this case, he said.

"These Anonymous attacks are like riding a bull, they can change wildly and at a moment's notice," said Mr Sop.

Carole Thierault, a security researcher at Sophos, warned against getting involved with the Anonymous campaign.

"No-one, no matter how much you want to take part, should do this," she said. "It is very risky, and most probably illegal."

Ms Thierault said downloading and installing the LOIC attack tool was very risky.

"No-one should download unknown code on to their system," she said. "You're giving access to your computer to a complete stranger."

Coinciding ideals

As well as releasing the attack tool, the Anonymous group has also been active in helping to create mirror sites. To date there are over one thousand sites offering exact copies of the content on Wikileaks.

It is also ensuring the information is available on dark nets, heavily encrypted layers of the internet via which information can be extracted while remaining untraceable.

The new-found attention on Anonymous has led the group to publish its manifesto.

In it, it denies that it is a group of hackers.

"Anonymous is not an organisation... it most certainly is not a group of hackers," it said.

"Anonymous is an online living consciousness, comprised of different individuals with, at times, coinciding ideals and goals."

It also keen to distance itself from Coldblood, who it said is not a spokesperson for the group.



Powered by WizardRSS | Best Membership Site Software

Phones used to redraw UK regions

Social networks could provide the key to redrawing the regional map of Britain, producing areas with strong social cohesion.

That's the idea of an international team, who have created a social map of Great Britain.

They used more than 12 billion landline calls to create a map of Britons' connections.

This social apporach to delineating regions sees parts of Wales merged with the West Midlands.

Regional boundaries are useful for governments, said Carlo Ratti, of the Massachusetts Institute of Technology, who led the work. "But they don't say anything about how people in those regions interact."

His team used records of more than 12 bilion anonymised landline telephone calls, to model who Britons frequently spoke to.

These records allowed the team identify the the local telephone exchanges used in the calls.

Where people spoke frequently and for extended periods, they were treated as having a stronger connection, Mr Ratti told BBC News.

A map created using those connections showed that people tended to communicate most with people that we geographically close to them, he added.

That enabled the team to identify dense clusters of connection as distinct regional groups.

They used a computer program to identify where they could draw regional borders which cut through the fewest number of connections possible.

Joined-up government

The resultant map of the Britain showed some instantly-recognisable regions, such as London (see image below).

But they also produced surprise results, including the creation of a region that encompassed parts of Wales and the West Midlands.

Ultimately, analysing social networks could help governments understand the likely impact of events such as a full secession of Scotland, the researchers said.

"Although you'd need to analyse further data sets, such as emails, instant messages to build a fuller picture of how people communicate," said Mr Ratti.

The data set used by the team was originally created for the BBC's Britain from Above series.



Powered by WizardRSS | Best Membership Site Software

Privacy project dices up details

A project that could radically reduce the amount of personal information we share in our dealings has been revealed by IBM researchers.

The ABC4Trust project is developing an "electronic wallet", with encrypted versions of all a person's details.

A query by a device like a "chip and PIN" reader will involve only the information that is strictly necessary.

The idea could also be applied to online transactions, and aims to give people more control over personal data.

IBM researchers, speaking at a press event at the firm's research laboratory in Zurich, say this exchange of encrypted data in a piecemeal fashion is far preferable to the case in which, for example, a consumer hands over a passport or driver's license for identification.

IBM is involved in developing some of the protocols and technology to accomplish the goals of the 13.6m euro (�11.4m) European-funded Attribute-Based Credentials for Trust project.

"There's two basic principles that we try to apply in order to protect online privacy," Jan Camenisch, an IBM researcher who is part of the ABC4Trust project, told BBC News.

"One of them is that with every piece of information that you're releasing you should specify what this information is used for - what's the purpose and why it's needed.

"The second is that whenever you release something, you should only release the information that is minimally necessary for this purpose."

For instance, renting a car might require no more information than confirming that a customer has had a valid licence for a given number of years.

Joining a chatroom for teenagers, by contrast, needs only a confirmation that a potential user is within a certain age group.

Token effort

In Dr Camenisch's vision, the future "electronic wallet" can be deployed to confirm these facts through encrypted transactions that give up no further information.

The project, which began in November and will run for four years, aims to define first of all the technology that is needed to accomplish its goal.

In principle, every single personal detail could be crunched into one long encrypted number that could even be stored in a mobile phone.

Dr Camenisch said a retailer or service provider such as a car rental agency would have a device that could send requests for specific pieces of information to a phone, and he described what the phone would display.

"It would open the 'wallet application', and tell you that the rental agency wants to know from you that you have a licence and you took the test more than four years ago," he explained.

The phone would list what information is being requested and then create an encrypted "token" that contains the answers.

"Your phone would do the rest - it would compute the new tokens from that and send that information off to the car rental agency."

Dr Camenisch said that the principle works the same for online transactions.

He explained that much of the project's work lies ahead in the development of the encryption protocols and the reader devices.

But the project is ensuring that the standards can be reviewed and improved as the technology is developed.

"In the end, these kinds of technologies will be open standards," Dr Camenisch said. "Some of our work is already available as open-source code so everybody can inspect that and see that it does what it promises to do."



Powered by WizardRSS | Best Membership Site Software

Wednesday, December 8, 2010

Mastercard attack &#39;hits payments&#39;

Web attacks on the Mastercard site have disrupted payments, the BBC has learnt.

The site is among several targeted by the Anonymous group of hackers, who have pledged to pursue firms that have withdrawn services from Wikileaks.

Mastercard, which stopped processing payments to the whistle-blowing site, said the attack had had "no impact" on people's ability to use their cards.

But the BBC has been contacted by a payment firm that said its customers had "a complete loss of service".

In particular, it said that an authentication service for online payments known as Mastercard's SecureCode, had been disrupted.

Other readers have also said that they have had problems with online payments. The scale of the problems is still unclear.

Mastercard has not responded to the claims.

Earlier, Doyel Maitra of the firm, said: "Mastercard is experiencing heavy traffic on its external corporate website - Mastercard.com - but this remains accessible.

"We are working to restore normal speed of service. There is no impact whatsoever on Mastercard or Maestro cardholders' ability to use their cards for secure transactions."

False account

Anonymous, which claimed to have carried out the attack, is a loose-knit group of hacktivists, with links to the notorious message board 4chan.

It said that it has hit several targets, including the website of the prosecutors who are acting in a legal case against Wikileaks founder Julian Assange.

"Start Quote

Websites that are bowing down to government pressure have become targets"

End Quote Coldblood Anonymous

PayPal, which has stopped processing donations to Wikileaks, has also been targeted.

The firm said Wikileaks' account had violated its terms of services.

"On 27 November the State Department, the US government, basically wrote a letter [to Wikileaks] saying that [its] activities were deemed illegal in the United States," PayPal's Osama Bedier told the Le Web conference in France.

"And as a result our policy group had to make the decision of suspending their account.

"It's honestly, just pretty straight forward from our perspective and there's not much more to it than that," he said.

Other firms that have distanced themselves from the site have also been hit in the recent spate of attacks including the Swiss bank, PostFinance, which closed the account of Wikileaks founder Julian Assange.

The bank said Mr Assange had provided false information when opening his account.

Swamp site

Security experts said the sites had been targeted by a so-called distributed denial-of-service attack (DDoS), which swamp a site with so many page requests that it becomes overwhelmed and drops offline.

Paul Mutton of security firm Netcraft said that 1,600 computers were involved in flooding the site with spoof requests.

Access to Mastercard's site is still intermittent.

Noa Bar Yosef, a senior analyst at Imperva said the attacks were "very focused".

"It is recruiting people from within their own network. They are actually asking supporters to download a piece of code, the DDoSing malware, and upon a wake-up call the computer engages in the denial of service," he said.

Before the Mastercard attack, a member of Anonymous, who calls himself Coldblood, told the BBC that "multiple things" were being done to target companies that had stopped working with Wikileaks or which were perceived to have attacked the site.

"Websites that are bowing down to government pressure have become targets," he said.

"As an organisation we have always taken a strong stance on censorship and freedom of expression on the internet and come out against those who seek to destroy it by any means."

"We feel that Wikileaks has become more than just about leaking of documents, it has become a war ground, the people vs. the government," he said.

Some of the early DDoS hits failed to take sites offline, although that was not the point of the attacks, according to Coldblood.

"The idea is not to wipe them off but to give the companies a wake-up call," he said. "Companies will notice the increase in traffic and an increase in traffic means increase in costs associated with running a website."

DDoS attacks are illegal in many countries, including the UK.

Coldblood admitted that such attacks "may hurt people trying to get to these sites" but said it was "the only effective way to tell these companies that us, the people, are displeased".

Anonymous is also helping to create hundreds of mirror sites for Wikileaks, after its US domain name provider withdrew its services.

Coldblood said that the group was beginning to wind down the DDoS attacks so that it could concentrate on using "other methods which are more focused on supporting Wikileaks and making sure the Internet stays a free and open place".

Are you a Mastercard customer? Have you been affected by the attack? Send us your comments using the form below.



Powered by WizardRSS | Best Membership Site Software

Google unveils Chrome OS notebook

<!-- Embedding the video player --> <!-- This is the embedded player component -->
<!-- embedding script -->
<!-- companion banner --> <!-- END - companion banner --><!-- caption -->

Google's head of product for Chrome, Sundar Pichai, demonstrates the new operating system

<!-- END - caption -->
<!-- end of the embedded player component --> <!-- Player embedded -->

Google has delayed the launch of its much anticipated laptop, powered by its Chrome operating system, until 2011.

Instead, Google announced a pilot programme aimed at people who "live on the web".

Chrome OS is Google's boldest bid yet to challenge Microsoft's market dominance with Windows software.

Google has already gone after Microsoft's Office software with its Google Docs product.

Chrome marks a departure from traditional operating systems, such as Mac OSX and Windows, by targeting users who spend most of their time on the web.

"We think cloud computing will define computing as we know it," said Eric Schmidt, Google's chief operating officer.

"Finally there is a viable third choice for an operating system."

Google's Sundar Pichai said the pilot scheme is aimed at early adopters, developers and users who are used to using beta software.

They will be given an unbranded black notebook, called the Cr-48.

Mr Pichai said there would be no devices on sale until next year simply because the software was not ready for prime time, due to a number of bugs and unfinished features.

"This is a profound shift," said Mr Pichai, claiming that the operating system is Google's attempt to "re-think the personal experience for the modern web".

"Chrome is nothing but the web," he added.

Machines for the pilot scheme will start shipping soon.

Consumer devices from Acer and Samsung are due on the market in 2011. No pricing details were given.

Computer share

At the press event in San Francisco, Google also outlined a number of features in Chrome OS.

Security was at its heart, with automatic updates for users taking away the need to constantly ensure that the latest version has been activated.

The company said that it hoped to be the first to ship a tool called "verified boot" on Chrome OS devices, which makes sure nothing on the machine has been modified or compromised.

"We are confident that when we ship Chrome notebooks, it will be the most secure OS ever shipped to users," said Mr Pichai.

He also said that because data will be accessed through the cloud, users could loan their machines to other people.

"By delivering nothing but the web, it makes it very easy to share your computer," said Mr Pichai.

Google said it has also partnered with US telecom titan Verizon to offer connectivity with Chrome notebooks when they go on sale.

The plans range from 100 MB of free data, to $9.99 a day for unlimited data, with no extra fees.

Two paths

A number of analysts have questioned whether or not Google is making a smart play with the Chrome OS, given that the computing world has changed dramatically since it announced plans for the low-cost operating system over 18 months ago.

In the last year, Apple's iPad has reinvigorated the tablet market, and Google's own Android OS - which powers smartphones - has taken off.

Android is also being used in tablet devices and netbooks, prompting a number of industry watchers to question Google's twin approach in the OS market.

"Google hasn't done a good job on why these two things need to exist," Michael Gartenberg, director with research firm Gartner, told the BBC last week.

"Android is designed for the here and now, an app centred world. The hottest devices don't have keyboards. Google has to come up with a better story of how Chrome fits in," he added.

Many fear two Google operating systems will cause confusion for consumers.

Google's Mr Schmidt does not believe it will, and recently stated that Chrome was for keyboards and Android was for touch-based devices.

The Chrome OS will be given free to hardware manufacturers.

Microsoft, in comparison, charges a fee for its Windows software.

Back in October, the software leader said Windows sales increased by 66% on a year earlier, to $4.8bn, helping to boost first quarter profits.



Powered by WizardRSS | Best Membership Site Software

IE9 introduces anti-tracking tool

Microsoft's IE9 browser will have tools that control what data is collected about what a user does online.

The tools will let people stop a site they are visiting sharing information about what they do with other sites.

Users will be able to create lists stating that their data will only be shared with sites they want to see it.

The news comes as the US government criticises the computer industry for its slow progress on protecting user privacy.

In a blog post, Microsoft said many people did not realise that when they visit a website what they look for, view or buy there is often shared with other companies without that user's knowledge.

In IE9, Microsoft is planning to introduce what it calls "Tracking Protection Lists" that it says will work like the "Do Not Call" lists that limit who marketing firms can cold call.

The lists will be defined by users and limit the sharing of data only to those sites which a user is happy to see the information. When switched on, the system might mean that some adverts or other features do not appear when users visit sites.

Anyone will be able to write a list and share it with others so they can get the same protection, said Microsoft.

It also plans to release the formatting and standards for the lists under an open licence so other browser makers can adopt them.

The tracking system will be turned off by default and users will have to "opt in" to use it.

Microsoft said early versions of the tools would be included in the version of IE9 due for release in early 2011.

It is not the first browser to offer such functionality. Chrome, Firefox and Opera also allow users to create lists of trusted sites.

The announcement comes in the wake of a report from the US Federal Trade Commission report into online privacy.

In it the FTC said that industry self-regulation of privacy was "too slow" and has "failed to provide adequate and meaningful protection".

It called for consumers to be given far more choice about the data being collected about them. It recommended the creation of a "Do Not Track" mechanism that would stop the wholesale collection of information about where people go online and what they are interested in.



Powered by WizardRSS | Best Membership Site Software

Tuesday, December 7, 2010

Cataclysm hits Warcraft&#39;s world

Thousands of people around the world queued into the night to get hold of the latest expansion for World of Warcraft (WoW).

The expansion, called Cataclysm, is the first for two years and makes big changes to the game.

The expansion re-makes the world in which WoW is set and rips up the geography of many familiar places.

It also introduces two new races to the game, increases the level cap and makes many other changes.

Shops around the world stayed open at midnight on 6 December to let eager players get their hands on Cataclysm. In Germany the MediaMarkt shop in Berlin ran a competition for the best WoW-themed costume worn by those queuing outside the store.

The Cataclysm expansion revolves around the emergence into Azeroth, the world in which WoW is set, of Deathwing the dragon. The seismic activity accompanying his emergence causes changes to almost every part of the game world.

Many of the geographical changes to Azeroth have already been applied to the game via a patch applied in late November. The expansion pack lets subscribers create worgen (wolfmen) and goblin characters. The level cap for players is also increased to 85 from 80.

Alongside the geographic changes go many alterations to the quests players must do to progress to higher levels. Many are themed around helping regions recover from the devastation wrought by Deathwing.

"Cataclysm is probably a far bigger deal for Warcraft-makers Blizzard than they're letting on," said journalist Alec Meer who writes for the Rock Paper Shotgun gaming blog.

"It's about transforming the World of Warcraft from something that could arguably be seen as winding down back into very much a going concern," he said.

Mr Meer said the expansion "rebooted, reimagined and reinvigorated" the many zones in the game in a bid to make it appealing to both veterans and new players.

"If Blizzard's plan works, the bulk of the game's population will spend the next few months adventuring through fresh-but-familiar lands together," he said, "making Cataclysm quite the opposite of what its apocalyptic title implies: a rebirth for the world's most successful videogame, and for its community."



Powered by WizardRSS | Best Membership Site Software

Google debuts second Nexus phone

<!-- Embedding the video player --> <!-- This is the embedded player component -->
<!-- embedding script -->
<!-- companion banner --> <!-- END - companion banner --><!-- caption -->

A look at how the Nexus S works

<!-- END - caption -->
<!-- end of the embedded player component --> <!-- Player embedded -->

Google has made its second bid for a slice of the mobile phone market, with the launch of its Nexus S phone.

The Samsung-built device comes less than 12 months after the launch of the firm's Nexus One, built by HTC, which failed to win over many consumers.

The Nexus S will initially be launched in the UK and US, and will be available "from the end of the month".

It is the first phone to feature the latest version of Google's Android operating system known as Gingerbread.

It also comes with new hardware such as Near Field Communications (NFC).

This short-range wireless technology is used predominantly in places like Japan and allows people to use their phone as a travel ticket, make small payments and scan their phone over adverts, for example, to get more information about a product.

"NFC allows the Nexus S to read smart objects" said David Burke of Google's mobile division.

These objects must have a small, unpowered NFC chip in them that is activated when the phone is held near.

"When you put the phone on top, it energises the circuit," explained Mr Burke. "It can echo information back to the phone and the phone can send information to the chip.

"So, you can swipe a movie poster and watch the trailer automatically," he said.

NFC is a growing trend in mobiles and will start to become more pervasive in the New Year, said Shaun Collins, managing director of research firm CCS Insight.

"NFC is going to be the technology of 2011, in my opinion," he told BBC News. "Most of the BlackBerries will have it and a big swathe of mid to high-level Nokias will have it."

The next version of the iPhone is also rumoured to contain the technology.

Net calls

The Nexus S was first shown off by Google boss Eric Schmidt at the Web 2.0 summit in San Francisco in November.

The 16GB, touchscreen device has been built in cooperation with Samsung and is part of its Galaxy S family of phones and tablets.

Mr Collins said it would compete with other "flagship devices" such as Nokia's N8, the BlackBerry Torch and the HTC Desire HD.

"Start Quote

In the US, one in four searches done on Android devices is done with voice"

End Quote David Burke

"This is great news for Samsung," said Mr Collins. "It becomes the de-facto flagship product for Android."

The search giant dismissed claims that it was showing any favouritism towards Samsung or that it was going into competition with other handset manufacturers that produce phones using Android.

"Our objective is not to compete with partners," said Mr Burke. "Our goal is to push the mobile ecosystem forward."

Mr Collins said that Samsung's window of opportunity with the device was small.

The phone claims to have the "world's first" 4in (10cm) curved display and has front and rear-facing cameras.

Inside it has the same processor as the Nexus One, but with increased memory bandwidth to make it more responsive, according to Mr Burke.

The phone is also the first handset to introduce the latest version of Android - known as Gingerbread.

The software is the fifth major revision of the firm's software and will be rolled out to most Android phones in the "coming weeks or months", said Mr Burke.

It includes a new user interface, support for new hardware such as gyroscope - used for gaming, for example, and internet calling.

This allows anyone to set up a VOIP account that can be used to place and receive calls over the internet.

The phone can be configured to use this feature as soon as it is in range of a wi-fi hotspot, allowing people to by pass the network operators.

Mr Burke said that he didn't expect any resistance to this feature from the networks, particularly as many of them customise the android software and could " remove the feature if they want to".

Phone promise

The phone also has a greater emphasis on voice control.

"In the US, one in four searches done on Android devices is done with voice," said Mr Burke.

The phone comes with existing software that allows people to control navigation on the phone with their voice as well as conduct searches.

A new set of commands also allows people to send text messages, e-mails and set alarms on their phone, amongst other things.

These will initially only be available in the US, whilst the firm build the voice models needed for its software to cope with other regional accents.

The phone will initially offered for sale by Carphone Warehouse in the UK and Best Buy in the US. It will not have its own Google web store like the Nexus One, which was shut after less than 5 months after Google admitted that it "remained a niche channel for early adopters".

"That didn't work out for Google," said Mr Collins. "But Carphone Warehouse is a different ball game - they have the distribution, brand and presence."

Mr Collins said that Carphone Warehouse was "setting themselves up as the place to go to for Android".

"They see that the operating system is increasingly becoming the differentiating factor for consumers and they are aligning themselves with Android," he said.

Mr Burke admitted the firm was "going for volume" by partnering with Carphone Warehouse.

In the UK, the Nexus S will come free with �35 per month contracts or will be offered unlocked - to be used on any carrier - for �549.

The Google blog said it would be available after 16 December in the US and 20 December in the UK.

However, a spokesperson for Carphone Warehouse said that it would take pre-orders from 1600 GMT today, but it would not be on sale "until later in the month".

The firm said it was still negotiating contracts with "all of the UK operators" and could not say when a phone ordered today would be delivered.

"We don't want to promise anything to customers that we can't deliver," she said.



Powered by WizardRSS | Best Membership Site Software

Cloud computing &#39;could boost EU&#39;

Widespread adoption of cloud computing could give the top five EU economies a 763bn-euro (�645bn; $1tn) boost over five years, a report has said.

The CEBR said it could also create 2.4m jobs. The technology gives software and computing power on demand over the net.

But experts warn that cloud computing can be very disruptive to business, and companies could end up "disillusioned".

"Nothing kills a new technology better than a poor user experience," said Damian Saunders of Citrix.

The report, by the Centre for Economics and Business Research (CEBR), was commissioned by EMC, a data storage and IT solutions firm that provides cloud computing services. The company is just one of many pushing into the sector, all saying that 2011 will be the year of the cloud, when the technology will find mainstream adoption.

When a company uses cloud computing, it does not build all IT infrastructure by itself. Instead, it rents storage, computing power or software services from other companies. The services are accessed via the internet, which in network diagrams is shown as a cloud, hence the name.

The cloud turns information technology into a utility, consumed like electricity or outsourced payroll services, says Chuck Hollis, EMC's chief technology officer.

However, moving IT services to the cloud is more than just a technical upgrade. "Moving to the cloud is a cultural shift as well as a technology shift," warns Dave Coplin, until recently national technology officer at Microsoft UK. "The cloud is a tool, it's an enabler, but you have to think about the outcome: what is it that you are trying to do?"

Biggest winners

Cloud computing does indeed help companies drive down IT costs; studies by technology analysts such as Nucleus Research have shown that using the cloud sharply cuts the energy used by computing. Cloud computing also makes it easier to use fewer computers to do the same amount of IT work, while the workload itself can be scaled up or down at an instant.

The CEBR report suggests that the rapid uptake of "cloud computing service offerings [will make them] progressively cheaper as economies of scale take hold and service offerings increasingly mature".

The authors of the CEBR study acknowledge that their estimates depend on numerous assumptions and uncertainties, but they forecast that by 2015 the European Union's top five economies - Germany, France, UK, Italy and Spain - could get an annual boost of 177bn euro, and create net new jobs of 466,000 a year.

"Start Quote

The UK is the only country to show a disproportionately smaller share of the cloud computing benefits than the size of its economy might suggest."

End Quote CEBR

The biggest winner in absolute numbers could be Germany, followed by the UK. However, if the gains are measured in relation to the size of the economy, Spain comes out on top while the UK comes bottom as "the only country to show a disproportionately smaller share of the cloud computing benefits than the size of its economy might suggest," the authors of the CEBR report say.

Cloud disruption

While the cloud is "a really cheap place to do business," according to Microsoft's Dave Coplin, it forces companies to change their IT culture and learn that it comes at a price. "People lose full control and flexibility, but get scalability and power in return," he says.

Damian Saunders, in charge of the data centre and cloud group at software company Citrix, says there are four key drivers that are now accelerating the rate of cloud adoption.

For starters, technology has improved, with better connectivity, higher internet speeds and virtualisation technologies that allow the more efficient use of servers. Then there are new business models, with companies not charging a big lump sum per software licence but on an "as-you-consume" basis.

"Start Quote

Nothing kills the successful adoption of new technology better than a poor user experience."

End Quote Damian Saunders Citrix

Consumerisation of IT is another driver. Mr Saunders calls it the "IT civil war" whereby every January "employees get a gadget for Christmas and then take it to work and don't understand why they can't use it". The move towards mobile computing, he says, is also driving the move towards cloud computing, which in turn is giving companies a competitive edge.

Arguably the biggest driver is the state of the economy. Cloud computing allows companies to invest in growth while spreading the cost. Instead of a big up-front costs, IT investment becomes a continuing operating expenditure that rises and falls with demand.

Until recently, says Mr Saunders, the risks of cloud computing "always overwhelmed the potential reward". This has changed now, he says, but also warns that "cloud is just reaching the peak of hype" that will soon end in disillusionment for those not prepared for the disruption it brings.

Echoing Mr Coplin's warnings about a cultural shift, Mr Saunders says companies will have to learn that "cloud computing will never replace everything that went on before". Companies will have to work hard to make cloud computing user-friendly, because "nothing kills the successful adoption of new technology better than a poor user experience".

And if companies get their roll-out of cloud solutions wrong, then all the optimistic forecasts - whether from the CEBR or others - will come to nought.



Powered by WizardRSS | Best Membership Site Software

Sunday, December 5, 2010

China &#39;orchestrated Google hack&#39;

Senior Chinese figures were behind the hacking of Google earlier this year which forced the search engine to quit the country, leaked US cables suggest.

One cable, released by whistle-blowing site Wikileaks, cites a "well-placed" contact as saying the action against Google was "100% political".

A politburo member is said to have been angered after Googling his name and finding critical comments online.

The cable says it is unclear whether China's top leaders were involved.

Other cables show Beijing has been "extremely concerned" about the use of high-resolution satellite imagery on Google's mapping software, Google Earth.

In January, Google said it had been subjected to a "sophisticated cyber attack originating from China" - it said the e-mail accounts of human rights activists were among those hacked.

In the ensuing row over internet censorship, Google abandoned mainland China and moved its Chinese-language operations to Hong Kong.

The company did not say who it thought was responsible but the cables, released by Wikileaks and published on the Guardian website, show the company had repeatedly raised concerns about the issue.

'Forbidden fruit'

The BBC's Nick Childs says the allegations contained in the cables will reinforce both the perception that the Chinese government is highly sensitive about the internet and suspicions that it was behind the hacking attacks on Google.

One cable from the US embassy in Beijing cites a "well-placed contact" as claiming "that the Chinese government coordinated the recent intrusions of Google systems".

"According to our contact, the closely held operations were directed at the Politburo Standing Committee level," it says.

The source, whose name is deleted from the text, told the US that the operations against Google were "100%" political in nature, not an attempt to reduce Google's influence in China in favour of domestic search engines, such as Baidu.

But the writer of the cable notes that it is "unclear whether President Hu Jintao and Premier Wen Jiabao were aware of these actions" before Google publicly announced its concerns.

The cable also reports on alleged concern in the Chinese government that, by challenging official censorship of the internet, Google had made itself seem more appealing to Chinese net users and given the impression that the US and Google were working together "to undermine Chinese government controls of the internet".

"All of a sudden, XXXXXXXXXXXX continued, Baidu looked like a boring state-owned enterprise while Google "seems very attractive, like the forbidden fruit," it says.

In cable dated 18 May 2009, US diplomats quote a Chinese source as saying that "the root of the problem" was an unnamed member of the politburo standing committee who wanted Google to stop linking to its international site from its sanitised version, google.cn.

The politician is said to have "recently discovered that Google's worldwide site is uncensored, and is capable of Chinese language searches and search results". He reportedly carried out a search for his own name and found sites personally critical of him.

Google consistently refused to remove the link, citing its own anti-censorship principles, and eventually left the Chinese mainland.

The cable says that while the US can neither confirm nor deny the allegations against Beijing, "the potential for continuing escalation by the Chinese, assuming Google sticks to its guns - and the likelihood of loud US Congressional and public outcry if it caves - suggest a high-level USG [US government] response may be in order".

The following January, US Secretary of State Hillary Clinton urged China to fully investigate the hacking allegations.

"Countries or individuals that engage in cyber attacks should face consequences and international condemnation," she said.



Powered by WizardRSS | Best Membership Site Software