Can HP-EDS put its money where its mouth is? EDS profit margin, pre-acquisition, was under 6%. The former EDS CEO, now heading the combined outsourcing unit, expects to leverage HP automation tools to cut costs and improve that margin.

But Rod Bourgeois, an analyst at Sanford Bernstein says, “It’s not like HP has automation tools that weren’t at EDS’s disposal before.”

But this brings up a good point. EDS and 140,000 new bodies notwithstanding, HP seems to be positioning itself to do a big automation push in the marketplace.

Of course this makes sense – we’ve talked before about what a critical role automation is going to have in managing the rapidly evolving “dynamic” data center. Technologies like virtualization and cloud computing needs are pushing out the limits of real-time resources management in the data center; management tools must perform faster, integrate with more solutions across the spectrum of IT infrastructure and be smart enough to do much of this on their own.

"consumers hate tokens."

"Everyone wants to be the single federation platform for everyone else."

"Federation will never work. It won’t work because the single most important consumer Web applications in the world are scared of it. Banks hate the concept because it becomes a weakest link in the chain problem."

"Tokens don’t actually solve most security problems, like man-in-the-middle, phishing, and keystroke-logging malware."

"Oh yes, and finally, consumers are going to have to carry around 13 of them just to make sure they can log into whatever they need to log into since no one will federate."

"Global federation is nowhere near a solid concept in the consumer space, despite what the vendors will try to sell you."

"This is a long term problem. If you work on it and make any progress against it, you'll find yourself much smarter at the far end, than you were at the near end.

When I was in Norway about 5 years ago, I was there very close to the summer solstice. I was wandering around town at 2 o'clock in the morning and there was plenty of light out. You come to a sign that says New Minsk about 60 km and it points south.

And I ask the lady "what country is this?"

She scratched her head for a bit, and said "well I think its Norway"

I said "well who plows the roads?"

"well Norway does, but he have to pay them."

There is a triple boundary in this town that I was in between Norway, Finland and Russia.

But what I did there, was, I had a card about wallet size, I stuck it into a machine, I punched in four digits, and it gave me about 2,000 krone, whatever the hell that is.

Now there are a lot of participants in that transaction. When I put a card into that machine, punch in a pin, and it gurgles for awhile, and finally gives me, a fairly large amount of money. There are a lot of participants in that transaction. The bank that owned the machine that gave me the money, it gave some money away -- that bank wants it back. The pin is necessary to convince my own bank that I'm me. But I don't want my pin to be broadcast all over the world. My bank in the us, it hasn't really given out or taken in any money, really. But there is a lot of credits involved here. Somebody needs to charge somebody else for having more money available. Even though there was actually no cash transfer.

And the problem that I have in mind is
- who are all the participants in an ATM transaction?
- what do those participants need to satisfy their problems?
- how is that in fact done?

In a general way, does the atm system actually work in some reasonable sense? To which the answer is by the way: yes. The atm system damn well works. With extremely high reliability and accuracy. It surprises me. Its quite a bit different than voting machines.

I am currently without a phone and would appreciate a speedy reply.

I have been a Verizon Wireless customer for over 5 years and my monthly bill easily averages over $200 during that time frame.  While I love your network, I have been completely unsatisfied by your selection of phones.  It is a stretch to say that my last phone worked—it had a feature called a battery that allowed me to switch from the car charger to my office charger without dying.  And I waited—under duress—until I was allowed to purchase a new phone with the discount.

My current phone has a wonderful battery life, but this is the 4th time the charger has snapped off in the phone.  The phone is fine, but I keep paying $30 for new chargers.  I refuse to purchase another or wait until February when I will be eligible for a new phone.  You sold a phone with a design flaw, and I’m not even asking for a refund or a free phone.  Just allow me to take a chance on a new one at the 2 year contract renewal rate. 

If not, I will gladly pay the early termination fee and leave Verizon.  On general principle, I will spend more money canceling my account with you than I would likely receive as a discount on a new phone.  As a customer, I consider it unacceptable that you sell inferior phones and leave me with no recourse.

The first time I waited haplessly to become eligible for a new phone.  I will not suffer a second time.  If you don’t like the fact that you will end up losing money by allowing me to purchase a new phone early, I suggest you take it up your vendors who supply you with awful products.  I can promise you that we will both lose more money if you don’t.

Sincerely,

Eric Marvets

I have had interaction with several security project managers who were very good in creating a buzz around their projects. Projects were given fancy names. The funniest project name I have heard was "Baby Rhino". One day I get an email in my inbox with a subject line which says: Baby Rhino Caputred! - The email got my attention, but the project did not gain any extra respect (because of the name) hardly there was any significant accomplishment in terms of its deliverable.

I would rather stick with project names that signify scope, relevance, meaning and value of  a project. It is not bad to market a project, but trying to market a project without delivering value is a gimmick.

(Photo Credit: Gizmodo)

You lose some. You win some: Of course as NBC’s online partner, Microsoft gets a least a cut of the $100 million dollars in online advertising spent around the Olympics. And the millions of downloads of Silverlight aren’t too shabby either.

The Internet is Falling! Arbor Networks, a security and network management company, partnered with ninety network services and content providers from around the world to publish an extensive study of IPv6 traffic on the Internet. Craig Labovitiz, Arbor Networks chief scientist, stated that only 900 days were left until the end of the Internet, or at least the exhaustion of IPv4 registry allocations. For the past year, the study shows very little IPv6 traffic – something like 1/100^th of 1% of Internet traffic. Craig credits this to money issues. “The department of commerce estimates it will cost $25 billion for ISPs to upgrade to native IPv6.”

Blogger James Urquhart created a bill of rights for cloud computing. The purpose of the bill is to “help guide would-be cloud customers to those clouds best able to guarantee their freedom.” The blogosphere is a great place to get some open debate going, and I applaud James for trying to make something yet so “cloudy” a bit more clear and concrete. But what’s up with the creating a PAC for this?? (Check out the comments.)

Trying to get by on limited resources? Need more money, staff and the freedom to focus on long-term projects? Sound familiar? Then you just might be in IT at a midsize company. (or in marketing at a young but rapidly growing IT company ) Arrow Enterprise Computing Solutions conducted a survey of 200 tech leaders at midsize companies (500 to 3000 employees). The upside: 61% of those surveyed think they’ll be spending more on IT next year – is this bullish thinking about the economy or how much their own business (rev) will be growing?

Bill Snyder calls Dell “Bozo of the Month” for trying to trademark “cloud computing”. Yikes. Maybe not a “bozo” move but certainly inadvisable given how ubiquitous the term is. Here’s our take on it.

Complicating factors is the impact (or lack thereof) of incidents on stock price.  Many researchers who identify themselves with the New School of Information Security (yours truly included) want to immediately look at stock price as a bell-weather metric for incident impact.  I think this stems from our days of slinging FUD, back when we could scream “Buy a firewall or we’ll have an incident and you’ll be on the front page of the paper and the stock price will go down!”  But these days notable incidents seem to suggest that the impact on stock price for an incident is short lived.  With qualifications, of course.

So what would/should we make of this from Money.co.uk?

£12million ($24m) Wiped off Helphire Stock after Malicious Email Sent to Clients

Car hire firm Helphire have taken Google to court after a malicious email sent from a Gmail account saw their shares plummet £12million in a single day.

The Bath-based business who specialise in providing replacement cars to ‘no-fault’ drivers involved in accidents on behalf of car insurance companies, initiated legal proceedings against the search engine giant as part of their attempt to find out who is responsible for sending the defamatory mailing.

Google are now known to have complied with the court order and have controversially supplied details of the email account and ISP used by the meddler.

Written under the psudoname Peter Franks, the 1200 word email is know to have been sent from a gmail account that was opened specifically for this purpose and closed a few minutes after the damage had been done…

…The misdemeanour couldn’t have come at a worse time for the struggling firm who have undergone a £45million rights issue and seen a 75% drop in the value of their stock already this year.

That last paragraph, for me, explains some of the difficulty in tying reputation damage to stock decreases.  It’s like when you read the headlines from Bloomberg about why the days stocks (or commodity) prices are up or down.  You know, the “Oil closes $3 higher on news that a notable South American dictator has a rather unpleasant boil in a very uncomfortable area” type of headlines.  You really do have to question the causality and correlation.  So in the Helphire case above - is this new drop in stock really because of the email sent?  If so, should we view that $24mil number as an independent data point to describe this sort of attack on reputation, or is the magnitude aggravated due to the long-term trend of stock price?

Even when we have “Objective Data” (an in-joke for Adam S.) like this decline in stock price, it is really difficult to provide any sort of precise estimate or measurement - about the future, present or past.  The best we can do is use ranges, distributions, that are reasonable based on evidence and observation.

So it’s worth filing away this sort of datum for future use - while dutifully acknowledging the qualifiers we might place around it.

So the questions I ask here - what should we make of this new information, and how should we view the $24million drop - they’re not rhetorical.  I am very interested in your views and welcome your comments!

Just the facts ma’am:

• Rank on Inc. 500: #350
• Three-year revenue growth: 840%
• Rank on Top 100 DC-area companies: #27
• DC area ranked #1 for most companies on the Inc. 500 list; #2 for most companies on the Inc. 5000 list (behind NYC)
• 2^nd fastest-growing software company in the DC area (Note: we got categorized as IT Services but of course we really fall under “Software”. They never seem to have a “Technology Appliances” category…)

Read the full press release here.

We’re loving it because of the awards we’ve applied for over the last few years and haven’t won. (Or maybe only I care about this since I had to fill out all those applications. Hmmm, I’m sensing a pattern here…) But in this case, it’s all about the numbers.

We love this part of our story because it comes down to customers actually believing in you and your product enough to plunk down the money – and keep coming back for more once you prove yourself the first time. It’s not about the hype or the latest flash in the pan or “sponsorship” or how much money some VC gives you. It comes down to you, your product and your happy customers.

The lawsuit claimed that the students’ planned presentation would violate the Computer Fraud and Abuse Act (CFAA) by enabling others to defraud the MBTA of transit fares. A different federal judge, meeting in a special Saturday session, ordered the trio not to disclose for ten days any information that could be used by others to get free subway rides.

“The judge today correctly found that it was unlikely that the CFAA would apply to security researchers giving an academic talk,” said EFF Staff Attorney Marcia Hofmann. “A presentation at a security conference is not some sort of computer intrusion. It’s protected speech and vital to the free flow of information about computer security vulnerabilities. Silencing researchers does not improve security — the vulnerability was there before the students discovered it and would remain in place regardless of whether the students publicly discussed it or not.”

This sets a good precedent for future cases, and perhaps next time a similar situation arises, a judge will not be so quick to issue a gag order. It’s not a happy ending yet though, as the original lawsuit is still in effect.

As Chris Wysopal pointed out last week, the MBTA’s ire is misdirected. Rather than suing the vendor who sold them the defective system, they sued and attempted to silence the students who discovered the weakness. This is 2008, not 1988 — did they honestly think a gag order would prevent the information from reaching the general public? The DEFCON presentation was already available on the Intertubes prior to the injunction being issued, and the MBTA attorneys included a copy of the confidential whitepaper with their filing, thereby making it public.

I guess you wouldn’t expect that a transit authority would have paid any attention to theCiscogate fiasco from a few years ago. That presentation never got out either, did it? All that taxpayer money the MBTA spent on ridiculous lawsuits and restraining orders could have been put toward fixing the security flaws. What a concept.