Google Sustains a Lull in Paid Search

A comScore report on Google's paid clicks is causing concern that Google's business may be slowing.

For the second straight month, a comScore report suggests that Google's revenue engine is slowing down, highlighting again the perils of the company's overwhelming dependence on a single type of online advertising to fuel its business.

The report is available only to comScore clients, but a comScore spokesman said that its findings are accurately rendered in a note authored last week by Citigroup analysts Mark Mahaney and James Samford.

A key takeaway from the Citigroup analysts: In February, clicks on Google's U.S. search ads grew only 3.1 percent year-on-year. Considering that February had 29 days, the growth rate would probably have been flat without the extra day, Mahaney and Samford wrote.

Coupled with a 0.3 percent year-on-year decline in January, also per comScore, a trend is emerging that Google's pay-per-click (PPC) ad business may be losing steam, after powering the search giant to mindblowing levels of revenue and profit growth for years.

While the news is of concern mostly to investors, it is also of interest for companies investing in Google's enterprise software products, like the fee-based version of the Google Apps suite and the Google Search Appliance. This is because the robust growth of Google's PPC ad business is what has allowed the company in recent years to fund its endeavors in enterprise search and hosted collaboration and communication suites. Should the PPC business slow down significantly, it will be interesting to see how that may affect Google's investment in its enterprise software unit, which generates a small percentage of the company's revenue.

Unfortunately for Google, it lacks a complementary revenue stream at the moment, despite years of actively trying to diversify into other forms of online ads, like banner ads, and into offline ads, like magazine, radio and TV advertising. Google still depends almost entirely on the PPC text ads it delivers along with its search results and in third-party partner sites.

Citigroup has been expecting a paid clicks growth of about 20 percent year-on-year for Google in the first quarter. "So if the comScore data is accurate and holds for Q1, and if it is representative of Google's global trends -- not just U.S. -- then it could imply risk to Q1 estimates," the analysts wrote.

Google executives, aware that the company is long overdue for diversifying its revenue mix, are promising concrete results this year and in 2009 in display advertising, such as banners, now that the DoubleClick acquisition has been finalized.

In November, Yahoo ranked first in the U.S. in display ad impressions with a 19 percent share, followed by News Corp.'s Fox Interactive at 16.3 percent, while Microsoft came in third with 6.7 percent, according to comScore. Google took seventh place with 1 percent.

When comScore issued its paid clicks report for January, which also included the fact that Google's paid clicks had suffered a 7 percent sequential decline from December, Google officials tried to put a positive spin on the news. They said the decline was due in large part to the company's initiative to improve the quality of ads' delivery, meaning that with more precise ad targeting, users had to click on fewer ads.

Google declined to comment about comScore's February report.

Is Microsoft Losing Credibility?

Research firm CoreBrand said Microsoft's brand is slipping in mindshare and good standing with business customers.

Microsoft's brand power has been in sharp decline over the past four years, an indication the company is losing credibility and mindshare with U.S. business users, according to a recent study by market research firm CoreBrand.

According to the CoreBrand Power 100 2007 study, which polled about 12,000 U.S. business decision-makers, Microsoft dropped from number 12 in the ranking of the most powerful U.S. company brands in 2004 to number 59 last year. In 1996, the company ranked number 1 in brand power among 1,200 top companies in about 50 industries, said James Gregory, CEO of CoreBrand.

CoreBrand measures brand power using four criteria. It first rates the familiarity of a company's brand. Once a company has a certain level of familiarity, they are ranked according to three "attributes of favorability": overall reputation, perception of management and investment potential, Gregory said. While Microsoft's brand is still eminently recognizable, the company is declining in all three favorable attributes, he said.

Gregory said that a decline in and of itself is not indicative that a company is losing its mindshare or reputation among customers. However, what's significant in Microsoft's case is that the decline has been consistent over a number of years, and has plunged dramatically in a brief time.

"When you see something decline with increasing velocity, it's a concern," he said.

Among its peers in the category of Computers, Peripherals and Computer Software, Microsoft is second to IBM in brand power, with Toshiba a close third, Gregory said. If Microsoft's downward trend continues, Toshiba could pass it in brand power next year, he said.

Gregory could only speculate as to why Microsoft's reputation has been declining, since his firm does not ask people that specific question. He said the "underwhelming" response to Windows Vista might be one reason, and Apple's clever "I'm a Mac, I'm a PC" advertising campaign -- which paints Windows in an unfavorable light -- may be another.

IBM suffered a "much faster and more severe" decline in brand power in the early 1990s, Gregory said, and it took them 10 years to rebuild the brand's reputation. To stage a similar turnaround, Microsoft must have a clearer vision of the direction in which the company is headed and put forth leaders that people can trust to articulate that vision, he said.

Microsoft, which has been diversifying its business beyond packaged software in the past several years, has struggled to articulate how the many facets of its business -- software, entertainment and online among them -- show a cohesive business plan. The company has been trying to clarify at least one of those strategies -- its online advertising business -- with new services and a bid to purchase Yahoo. However, Gregory suggested it may take more than that to raise the perception of its brand.

Don't Trust Tech too Much, Security Conference Warned

Computers can't think on their feet, so companies still need experienced humans in charge, says a Black Hat presenter.

Companies are relying too much on technology to run their businesses, a trend that doesn't account for unpredictable situations that humans still deal with better than machines, a technology expert said Thursday.

The corporate carnage over the last few years should serve as a guide, from the near-collapse of financial institutions such as Bear Stearns, an investment bank in the U.S., and Northern Rock, a U.K. lender, said Ian O. Angell, a professor of information systems at the London School of Economics.

Angell is known for his dark predications about the ramifications of technology. "Whenever I smell flowers, I think funeral," Angell said to a crowd of information security analysts at the Black Hat conference in Amsterdam.

The problem is that business information systems make assumptions that don't necessarily follow what happens in real life. Then, that data is used to make decisions, which can mean false conclusions.

"When companies use the tools of technology to solve a problem, they may or may not succeed, but what is certain is that completely unexpected phenomena happen," Angell said.

Angell, who has been at the London School of Economics since 1986 and previously taught computer science at Royal Holloway College in the U.K., argued that digital security has to be redefined. The problem is that only in hindsight do the marginal events that eventually cause a security problem become evident.

But "every organization must keep the commercial, social, and technological feedback and some semblance of control," Angell said. "This is what a security manager does."

The executive boards of many companies, however, are recognizing the impacts when their IT -- and employees -- perform poorly. It can mean fines, or at worse, prison, such as what happened to Jeffrey Skilling, CEO of Enron, who was sentenced to 24 years for fraud in 2006.

"No wonder security grabs their attention," Angell said.

The good news is that even in the face of ever powerful, more complex computer systems, smart humans still play a vital role. The conclusions made by machines are only as good as the numbers put into them, which can often be skewed or misleading. And people have come to believe whatever is on the screen, a sort of "glass cockpit" effect, Angell said.

Angell's advice: expert uncertainty. And be careful while you're crunching data. As an example, Angell showed a video where six people, three dressed in white shirts and three in black, tossed basketballs among one another.

He asked the crowd how many times the people with white shirts passed the balls. One answer offered was 14 times. Angell said the answer doesn't matter. He told the crowd to watch the video again and focus on watching the middle of the ball-tossing.

A person in a gorilla costume walked through the ball tossers, which was missed by everyone counting balls.

"If you count, you miss the most obvious things," Angell said.

Cybersquatters Ousted in Record Numbers

Trademark abuse is increasing -- but being fought -- online and worldwide, agency reports.

GENEVA (Reuters) - The World Intellectual Property Organization (WIPO) ousted a record number of "cybersquatters" from Web sites with domain names referring to trademarked companies, foundations and celebrities in 2007.

WIPO, a U.N. agency based in Geneva, received 2,156 complaints alleging "abusive registration of trademarks on the Internet" last year, up 18 percent from 2006 and 48 percent more than the filings lodged in 2005.

"These increases confirm that 'cybersquatting' remains a significant issue for rights holders," Frances Gurry, WIPO's deputy director-general said on Thursday.

Most complaints came from the pharmaceutical, banking, telecommunications, retail and entertainment sectors.

Drugmakers were the top filers "due to numerous permutations of protected names registered for Web sites offering or linking to online sales of medications and drugs," WIPO said.

Last year's domain name disputes involved a wide range of products, events and people -- including Airbus's A380 jet, the 2010 FIFA World Cup, Harvard Business School, Lance Armstrong's Livestrong foundation, talk-show host Oprah Winfrey, and television show The Simpsons.

A quarter of cases were settled without a WIPO panel decision. Of the remainder, in 85 percent of cases the panels transferred the disputed domain names to the complainant, and in 15 percent the panel ordered no change of the site registration.

Most domain name complainants came from the United States, France and Britain, while respondents were mainly based in the United States, Britain and China, WIPO said.

Comcast, BitTorrent Partner on Network Management

Despite clashing dramatically on network traffic issues, the pair will team on managing downloads and usage.

Comcast, under fire for slowing some BitTorrent traffic, will work with the P-to-P (peer-to-peer) vendor to come up with better ways to address media downloads and network management, the companies announced Thursday.

Several consumer and digital rights groups have used Comcast's network-throttling actions to argue for the need for U.S. net neutrality regulations. The Associated Press reported in October that Comcast was blocking some BitTorrent traffic, and the cable modem service provider has defended its practice of sometimes slowing P-to-P traffic during peak network use.

Comcast, the largest cable modem service provider in the U.S., also said it will migrate to a network management technique that is protocol agnostic by the end of the year.

"This means that we will have to rapidly reconfigure our network management systems, but the outcome will be a traffic management technique that is more appropriate for today's emerging Internet trends," Tony Werner, Comcast chief technology officer, said in a statement. "We have been discussing this migration and its effects with leaders in the Internet community for the last several months, and we will refine, adjust, and publish the technique based upon feedback and initial trial results."

But BitTorrent also acknowledged that ISPs (Internet service providers) may need to manage their networks, especially during peak traffic. "While we think there were other management techniques that could have been deployed, we understand why Comcast and other ISPs adopted the approach that they did initially," Eric Klinker, BitTorrent's chief technology officer, said in a statement. "Recognizing that the Web is richer and more bandwidth intensive than it has been historically, we are pleased that Comcast understands these changing traffic patterns and wants to collaborate with us to migrate to techniques that the Internet community will find to be more transparent."

Comcast and BitTorrent have been talking with each other, but they will also work with the broader Internet community to address traffic management issues, the companies said in a news release. The companies will work with the Internet Engineering Task Force on a new distribution architecture for delivering high-bandwidth media, they said. BitTorrent will work to optimize its software for the new architecture, the company said.

Kevin Martin, chairman of the U.S. Federal Communications Commission, has called for an investigation into Comcast's network management practices. But the companies said there's no need for government intervention.

The two companies "can serve consumers best by working together, along with the broader ISP and Internet community," Doug Walker, CEO of BitTorrent, said in a statement.

Free Press, a media reform group that's been critical of Comcast's network management, said the agreement doesn't change "the urgent need for the FCC to take action."

"This deal is the direct result of public pressure -- and the threat of FCC action -- against Comcast," Marvin Ammori, general counsel of Free Press, said in an e-mail. "But with Comcast's history of broken promises and record of deception, we can't just take their word that the Internet is now in safe hands. The issue of net neutrality is bigger than Comcast and BitTorrent."

The agreement doesn't protect other P-to-P companies or other "innovative" applications and services, and it doesn't prevent other ISPs from blocking or slowing Internet traffic, Ammori said.

Microsoft Rolls Out Third Public XP SP3 Build

Microsoft today released a new public version of Windows XP Service Pack 3 (SP3), saying it was again testing the update's online distribution.

Microsoft Corp. Tuesday released Windows XP SP3 RC2 Refresh, a new public version of Windows XP Service Pack 3 (SP3), saying it was again testing the update's online distribution.

The new build is the second one offered to all XP users in the last five weeks. "The purpose of RC2 Refresh is to validate improvements to the Windows Update experience with Service Pack 3," a notice on a TechNet support forum read Tuesday afternoon.

The refresh, which is also tagged as Build 5508, will be available only as a Windows Update download, and only in English, German and Japanese versions, said Microsoft employee Chris Keroack in the TechNet announcement. There are no significant differences between this build, said Keroack, and Build 3311, released Feb. 19, except for the addition of high-definition audio support.

A slightly earlier build, labeled 5503, had been issued to a subset of Microsoft's beta-test group two weeks ago. It promptly leaked to the Internet, where users were able to locate and download it using BitTorrent search sites.

As with the February Windows XP SP3 RC2, users must download, install and run a small registry hack available from the company's Download Center to force their PCs to "see" the newest build on Windows Update. Users must also uninstall earlier versions of SP3 before applying the hack, Microsoft said.

This is the third time that Windows XP users have had the chance to try out SP3, the last scheduled major update to the six-year-old operating system. Although Microsoft has not budged from its stated intention to deliver the update sometime before the end of June, some sources have recently reported that the company will wrap up SP3 in the last two weeks of April with a first wave of seven languages, then follow that with the remaining supported languages three weeks later.

Windows Vista Service Pack 1 (SP1), which hit Windows Update a week ago Tuesday, used the same "Refresh" label for the last preliminary version released to the public. That version went public a little more than three weeks before Microsoft called Vista SP1 done and slapped the release to manufacturing label on the code.

Using that rough timetable, Microsoft could declare XP SP3 as reaching RTM around the middle of April.

Once SP3 ships, the next major milestones for Windows XP are June 30, when the popular operating system is set to drop off the availability list for resellers and retailers, and Jan. 31, 2009, when it will be taken out of all distribution channels.

Mainstream support for Windows XP will continue until April 14, 2009, according to Microsoft's schedule, with free support after that limited to security patches

What is DMADV?

DMADV is one of two major methodologies of the Six Sigma system. The Six Sigma system is a way to improve processes in work and manufacturing and its main goal is to eliminate defects. The Six Sigma methodology has been widely used by many Fortune 500 corporations with amazing results and can be used in small groups to achieve goals or on a corporate level affecting tens of thousands of workers. The short definition of the Six Sigma system is a set of practices that improve efficiency and remove defects.

The Six Sigma system has been around for over 20 years and was built upon the TQM (total quality management) and Zero Defect principles. It strives to achieve high quality manufacturing and business processes by continued efforts to reduce variations.

The major methodology of Six Sigma states that in order to eliminate defects or variations, processes used in both business and manufacturing must be measured, analyzed, controlled and improved upon. In addition, Six Sigma requires a sustained commitment from a small group or an entire organization.

Six Sigma refers to a defect level of lower than 3.4 defects or variations per million opportunities. Its name and actions strive to achieve high quality output. The Six Sigma methodology has been extremely successful throughout the business world and has helped companies save billions of dollars through enhanced productivity and a reduction of defects. The Six Sigma system was originally started by Motorola and is a trademark of the Motorola Corporation.

There are two major methodologies in the Six Sigma system, they are DMAIC and DMADV. In this article, DMADV will be covered. DMADV is an extremely effective way to create a new product or a new process design. This methodology's goals are for its designs to be predictable, and defect free. There are five steps in the DMADV process, they include; Define, Measure, Analyze, Design Details and Verify the Design. Here is some more information regarding each step.

Define: In the first step, you must define the design goals that are both consistent with your customer's demands and your own company's goals.

Measure: In this step, four things should be measured. They include, CTQ's which stand for critical to qualities, production process capability, risk assessments and product capabilities.

Analyze: It is important to use the process of analysis to develop and design better alternatives that can reduce defects. These designs must be evaluated for their inherent capabilities to determine whether the design is the best available or if an alternative can be created which may be better.

Design Details: In this step a design must be optimized to function at its peak. In addition, in order to optimize a design, a design must usually be verified. While verification is the last process, during the design details step, a design plan should be readied for the next step.

Verification: Once a design has been analyzed and tested, it should be verified. Verification usually occurs through pilot runs. As a design is verified through the pilot run, it can be readied for full produc

Holes Plugged in Kerberos Security System

Developers of the Kerberos authentication system urge users to update and plug a trio of known and hazardous holes.

The MIT developers of the Kerberos authentication system have released patches for several serious security holes, which could allow remote attackers to obtain sensitive information, shut down a system or execute malicious code.

The first problem is with the Kerberos Key Distribution Center (KDC) and involves the way the KDC handles incoming krb4 requests. The problem can be exploited to crash the KDC server, execute malicious code or disclose memory, according to MIT.

The second problem is in the way the KDC sends responses for krb4 requests, which can be exploited to disclose potentially sensitive stack memory via a specially crafted krb4 request.

Exploitation for these first two bugs requires that krb4 support is enabled in the KDC; it is disabled by default in newer versions. These bugs affect Kerberos 5 versions 1.6.3 and earlier.

The third bug is in the Kerberos RPC library when handling open file descriptors. Under certain conditions, an attacker could send an overly large number of RPC connections, causing a memory corruption and allowing the execution of malicious code.

This bug affects Kerberos 5 versions 1.2.2 to 1.3 and 1.4 through 1.6.3, according to MIT.

Independent security firm Secunia gave the bugs a "highly critical" ranking.

What is ERP?

ERP stands for Enterprise Resource Planning. ERP is a way to integrate the data and processes of an organization into one single system. Usually ERP systems will have many components including hardware and software, in order to achieve integration, most ERP systems use a unified database to store data for various functions found throughout the organization.

The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization - large or small.

In order for a software system to be considered ERP, it must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization (QuickBooks: payroll & accounting), most ERP systems cover several functions.

Today's ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.

Integration is Key to ERP

Integration is an extremely important part to ERP's. ERP's main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow. ERP's usually accomplish integration by creating one single database that employs multiple software modules providing different areas of an organization with various business functions.

Although the ideal configuration would be one ERP system for an entire organization, many larger organizations usually create and ERP system and then build upon the system and external interface for other stand alone systems which might be more powerful and perform better in fulfilling an organizations needs. Usually this type of configuration can be time consuming and does require lots of labor hours.

The Ideal ERP System

An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:

Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.

Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.

Human Resources: Benefits, training, payroll, time and attendance, etc

Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.

Projects: Costing, billing, activity management, time and expense, etc.

Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.

Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.

ERP Improves Productivity

Before ERP systems, each department in an organization would most likely have their own computer system, data and database. Unfortunately, many of these systems would not be able to communicate with one another or need to store or rewrite data to make it possible for cross computer system communication. For instance, the financials of a company were on a separate computer system than the HR system, making it more intensive and complicated to process certain functions.

Once an ERP system is in place, usually all aspects of an organization can work in harmony instead of every single system needing to be compatible with each other. For large organizations, increased productivity and less types of software are a result.

Implementation of an ERP System

Implementing an ERP system is not an easy task to achieve, in fact it takes lots of planning, consulting and in most cases 3 months to 1 year +. ERP systems are extraordinary wide in scope and for many larger organizations can be extremely complex. Implementing an ERP system will ultimately require significant changes on staff and work practices. While it may seem reasonable for an in house IT staff to head the project, it is widely advised that ERP implementation consultants be used, due to the fact that consultants are usually more cost effective and are specifically trained in implementing these types of systems.

One of the most important traits that an organization should have when implementing an ERP system is ownership of the project. Because so many changes take place and its broad effect on almost every individual in the organization, it is important to make sure that everyone is on board and will help make the project and using the new ERP system a success.

Usually organizations use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting, Customization and Support.

Consulting Services - usually consulting services are responsible for the initial stages of ERP implementation, they help an organization go live with their new system, with product training, workflow, improve ERP's use in the specific organization, etc.

Customization Services - Customization services work by extending the use of the new ERP system or changing its use by creating customized interfaces and/or underlying application code. While ERP systems are made for many core routines, there are still some needs that need to be built or customized for an organization. Support Services- Support services include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.

Advantages of ERP Systems

There are many advantages of implementing an EPR system; here are a few of them:

• A totally integrated system
• The ability to streamline different processes and workflows
• The ability to easily share data across various departments in an organization
• Improved efficiency and productivity levels
• Better tracking and forecasting
• Lower costs
• Improved customer service

Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

Usually many obstacles can be prevented if adequate investment is made and adequate training is involved, however, success does depend on skills and the experience of the workforce to quickly adapt to the new system.

• Customization in many situations is limited
• The need to reengineer business processes
• ERP systems can be cost prohibitive to install and run
• Technical support can be shoddy
• ERP's may be too rigid for specific organizations that are either new or want to move in a new direction in the near future.

Hidden Dangers of Automatic Encryption

Every business has data that needs protecting. You don't have to be a MasterCard, with tens of millions of financial records at risk, to worry about data security. Whether it's your customer lists or your corporate credit card accounts, you have some information that shouldn't get into the hands of the bad guys.

Encryption is one way to plug those leaks, but the problem with most data encryption software is that it doesn't get used. Conventional wisdom says that anything that adds extra hassle to the workday is bound to be neglected by end users.

A company called Applied Security claims to have eliminated that problem with its latest product. Called fideAS, it works behind the scenes to encrypt user data transparently, according to policies defined by IT security managers. Your sales force need never lift a finger to have encryption employed automatically for all their significant documents, Applied Security claims.

This sounds like a great idea, but I'm actually of two minds about it. On the one hand, encryption is a fine first line of defense in cases of laptop theft or network intrusion. There seems little doubt that proper use of encryption could have prevented several headline-making cases of data theft. On the other hand, I worry that automated encryption could give many businesses a false sense of security that might actually leave them more vulnerable.

As long as a file sits on a hard disk, encrypted, its contents are safe. But the truth is that the most important data seldom stays idle for long. You need to work with it. You need to open those files, access them, read them, and modify them. That means they must necessarily spend much of their lives unencrypyed -- in RAM, on your screen, and most importantly, in your mind.

That last part is the really tricky one. Because with cyber espionage on the rise, targeted phishing and social engineering are increasingly the tools of choice. In other words, modern data thieves won't come charging through your firewall to gain access to your sensitive data. They'll just ask you for it. Without proper training and awareness, any employee can become a security leak that no amount of file encryption can plug.

Are you nervous yet? I am. When financial institutions can fall victim to massive data leaks, when they arguably deploy more data security than any other type of companies (including encryption), I wonder how many small and midsized business have suffered similar leaks that "weren't big enough" to make the news?

AirPort Update Allows USB Disks to Be Used With Time Machine

With the updates to its AirPort Extreme wireless base stations, Apple restores the ability of users to connect a USB disk and use it as a Time Machine backup.

Apple has brought back a very handy feature for Leopard users that own an AirPort Extreme.

With the updates to its AirPort Extreme wireless base stations on Wednesday, Apple restored the ability of users to connect a USB disk and use it as a Time Machine backup.

If you have a USB drive, you must connect it to your Mac and format the disk as Mac OS X Extended (Journaled) using Apple's Disk Utility. Once that is done, plug the disk into your base station's USB port.

Open a Finder Window and in the left hand sidebar you should see a new disk in the "Shared" section. Click on the drive that has the same name as your base station and then double-click the enclosed folder -- this will mount your USB drive on your desktop and allow Time Machine to find it.

Open the Time Machine preferences and click "Choose Disk." Your newly formatted USB drive will now be available as a Time Machine backup disk.

It's curious that Apple reactivated this feature now. When they first introduced Time Machine in Mac OS X Leopard, the ability to backup to a USB disk connected to an AirPort Extreme was a selling point. However, by the time operating system shipped, that feature had been removed.

When the company introduced Time Capsule -- a hard drive and 802.11n wireless base station built specifically for Time Machine -- in January, the speculation around Macworld Expo was that Apple disabled the feature so they could sell these devices.

Virtual PBX Puts a Professional Spin on VoIP

As businesses of all sizes begin to rely on VoIP (Voice over Internet Protocol), the virtual PBX option has become a widely popular choice. A virtual PBX arrangement, in which a telephony system is provided through an Internet download and then managed by an outside service, offers a low-cost and easy-to-set-up means for a business to use VoIP services. Such a system can assist companies and solo entrepreneurs in creating a more professional image that lets them grow their businesses more quickly.

Yet for businesses searching for a virtual PBX provider, the options can be daunting. Some services excel in providing businesses with a diverse range of calling features but make it difficult to combine those features without increasing the cost of the calling plan significantly. Other providers may offer basic services at a low cost but might be unable to grow with the business's need for enhanced calling features.

Before you can choose a virtual PBX provider, as well as the plan appropriate for your business, you should first understand what services are available and how they work.

What Is Virtual PBX?

PBX is the commonly used term for a private branch exchange, a telephone exchange system that serves one business. Originally a PBX was designed to allow companies to control their phone systems through in-house operators. Today, instead of just connecting calls, these systems also connect fax machines, computer modems, and other types of technology that route through the phone lines.

Businesses embracing VoIP were, from the start, highly interested in making use of PBX systems, but they had to find a way to do so that didn't tap their resources. The solution has been to use "hosted PBX" systems, in which an outside company manages the private VoIP system; instead of the telephone exchange system's being located at the business, it is located at the site of the VoIP host. This arrangement allows a small business to take advantage of a comprehensive VoIP system without having to maintain a staff to keep that system running.

Just as VoIP systems have begun to offer a variety of features, virtual PBX providers have evolved to supply additional services, such as messaging, call-forwarding, and call-waiting options, as well as advanced calling features such as automatic dialing. Virtual PBX hosting also offers advanced features that are unique to the integration of the phone and computer.

For example, many providers offer Outlook integration so that users can access e-mail address books through one location. Additionally, many services offer click-to-call widgets, which appear as buttons on the business's Web site or social networking profile; when a customer clicks the button, the two parties connect by phone. This is a major feature that helps businesses move seamlessly between online and voice interaction.

On a simpler level, the integration of voice and data features allows for ease of communication within the business itself. Since virtual PBX services host video, voice, and data conferencing, a company can achieve remote collaboration without investing in any additional software or hardware. Moreover, virtual PBX systems provide an online means of tracking call data, which can assist with billing and budgeting.

Among a number of other benefits, virtual PBX requires no extra hardware and little training; as a result, it entails lower startup costs for the business. A virtual PBX setup might not be the right solution for every business, however. For example, companies requiring automatic call distribution may find that their options are limited on a virtual PBX; although ACD is available through most virtual PBX systems, it tends to be a simplified version that could be insufficient for businesses regularly routing calls to different areas of the company.

Assessing the Providers

The growing demand for virtual PBX has led to an increase in the number of VoIP companies offering the service. Each company provides the same basic service but has unique pros and cons.

Currently the top five virtual PBX providers in the market are GotVMail, Packet8, RingCentral, Vocalocity, and VoiceNation. RingCentral and VoiceNation have distinguished themselves in creating the impression that a small business is bigger than it is through the use of certain VoIP features such as call-center functions. In contrast, GotVMail has set itself apart as an ideal service for the solo entrepreneur who doesn't have a lot of money to spend on advanced features but still needs basic VoIP functions.

Vocalocity focuses less on the specific services provided than it does on the cost of its service. It stands out as a leader in lowering the overall calling costs for all types of businesses. Packet8 also emphasizes lower costs but distinguishes itself from Vocalocity by concentrating on features as well. Its most outstanding benefit is that it offers scalability, allowing you to get the various services you need at an affordable rate as your business grows.

Each company has a different feature that makes it particularly useful to certain customers over others. For example, one of the main advantages of virtual PBX is its ability to offer reduced calling costs on long-distance and international calls. The company that does best in this area overall is Vocalocity, mainly because it eliminates the long-distance charge and offers a low-cost rate for calls through the system. In contrast with the policies of other companies, Vocalocity's rates do not differ significantly based on the area you are calling, which is the main reason that it can lower costs for all types of businesses.

Another great feature of VoIP that should appeal specifically to small businesses is its potential to increase the professional credibility of the company by helping it appear larger than it is. One of the major leaders in developing and promoting this type of approach to VoIP is RingCentral, which focuses on providing services such as call-center features. Because of this approach, RingCentral is a favorite among small businesses trying to get a toehold in their industry--it serves a niche need in the VoIP community.

VoiceNation is another virtual PBX VoIP provider that succeeds in this regard. It promises to give the impression that employees working in remote locations are all situated in one office, and small businesses that use this company have reported that it lives up to that claim. For businesses that operate primarily through freelance contractors and work-at-home staff, this service is a way to present clients with a united front despite the lack of a single shared office space.

Packet8 excels in its ability to set up a virtual call center, and it puts emphasis on its service's scalability, offering calling features and plans designed to meet the needs of growing and changing businesses. In contrast, GotVMail may be perfect for the small entrepreneur who requires only a few basic services, but because it is a smaller company it cannot accommodate the services that an expanding business may seek.

To determine the best plan for your business, assess your calling needs and do research on which VoIP providers offer combinations of your desired features at the lowest rate. The main thing to consider is whether you can take advantage of features other than simple voice calling. You want to be able to integrate your voice system with your computer--that's why you're routing calls through the computer in the first place. Look at providers that offer Outlook e-mail integration, data features (such as push-to-e-mail voice messaging), and videoconferencing features. Without those things, you have just a basic phone system.

When researching, seek out companies that have several set calling plans. For example, RingCentral offers four levels of plans designed for businesses of varying size. The company's lowest-level plan, which costs only $15 per month, allows you to connect 5 people to the line and to use a total of 100 minutes per month. In contrast, the third of RingCentral's four plans costs $50 per month and gives you 20 connections and 1000 total minutes. Both plans offer the same basic features, including voice mail that you can push to e-mail and a click-to-call widget for your Web site. The more-advanced plan also gives you a separate fax number and a dial-by-name directory.

RingCentral's four-tiered pricing system makes choosing a suitable plan fairly easy, but it doesn't give you the means to change specific features or add the ones you desire. In contrast, Packet8 offers 13 different calling plans at various prices with a range of features designed to express the scalability of its VoIP services. While the wide selection gives you more options, it can make your decision more difficult because you have so much information to sift through.

In addition to choosing a good basic rate for your plan, make sure to review carefully the number of minutes your plan includes, as well as the cost of calls that exceed those limits. For instance, RingCentral and GotVMail both have plans that cost $50 per month and cover 1000 minutes, but the additional per-minute rate for RingCentral is 4.8 cents, while for GotVMail it's 5.8 cents. GotVMail, however, offers more features with its calling plan, so the extra per-minute cost may be worth it to some customers.

Ultimately a virtual PBX system should reduce the need for a small business to focus on managing its calls, and it should limit the stress that an advanced calling system can place on a business. And businesses that have remote employees or work in multiple locations may find that using a virtual PBX system to host teleconferences is an easy and efficient way to connect everyone in the company.

Automatic Encryption System Debuts

The problem with file encryption is that users forget to use it. A new server-based system from Applied Security claims to remove that obstacle by handing the decision to encrypt data back to anxious administrators.

The company's newly-launched fideAS file enterprise software can be used to encrypt data in files or folders on PCs, laptops, or even servers. Integrating with a Microsoft Active Directory for easy management, the innovation is that none of this involves the user of that device making any decision for or against using such a security system. It is done transparently according to policies on which data needs to be secured.

The key distribution element -- always a tricky issue -- can be given to users on smartcards or as tokens on plain USB drives. For added security, the role of the system admin and the security admin is separated, ensuring that no one individual has total access to the keys in a way that could be used to undermine the system.

The software has a few other tricks up its sleeve that might prove useful. It can enforce a degree of endpoint control, for instance, stopping unauthorized hard disks or USB sticks from being plugged in to remove unencrypted data, and the automatic encryption of email attachments.

A separate free add-on tool for PCs, fideAS file safe, can be used for straight desktop encryption up to AES-256 level, including that of outgoing email attachments.

The company's pitch to potential customers will be the same as every other company trying to scramble on the back of new interest in encryption as a primary security defense.

"Recent high profile date loss incidents from the HMRC and Royal Navy to TKMaxx, and Marks and Spencer, could all have been avoided if files had been encrypted," claimed Applied Security's CEO, Frank Schlottke.

"fideAS file enterprise has been designed to combine a high level of cryptographic security with maximum user friendliness, so that encryption does not slow down or get in the way of day-to-day work activity," he said.

Equally, saying that encryption could have stemmed the flow of recent security incompetence, and actually putting it into practice are two different things. Encryption has been around since the beginning of the computer age and the fact it hasn't taken off only is only partly to do with complacency. Management can turn into a chore -- an expensive one.

One potential benefit of Applied Security's approach to encryption is that it can secure 'feral' clients such as laptops, which are typically away from the safety of the network most of the time, without having to get into the major headaches associated with full disk encryption (FDE) systems.

Free E-mail System Tracks Transactions

An entrepreneur, frustrated at the inability of event-based e-mail to produce any decent record of delivery, has developed what he calls "an enterprise-grade event-based e-mail system" called TriggerMail.

"Event-based e-mail is essentially transactional e-mail," said Neil Capel, founder of TriggerMail, speaking to Techworld. "It is user-generated, i.e. it is triggered by a user event. This could be when a user signs up to a website and receives a welcome e-mail, or when they purchase an item."

TriggerMail went into beta in November with five clients and the full release has now been launched this month.

The company claims to get a very high hit rate in getting event-based e-mails into the right inboxes, by monitoring the delivery and click-though activity to ensure e-mails don't end up trapped in the spam folder. It is configured with domain keys and SPF (Sender Policy Framework), and is a member of the Spam Sender Control to increase delivery rates.

"The idea for TriggerMail came from having to deal with the increasing problem of getting potential users to read their e-mail from new websites," said Capel. "We had to engage the user and be able to monitor their reaction. TriggerMail enables that, and ensures e-mail doesn't go in the spam folder."

TriggerMail also allows for the e-mail statistics to be integrated into Google Analytics, and e-mail templates can be edited in both HTML and text.

The TriggerMail network consists of five independent connections to Tier 1 global transit providers. The architecture is built from the ground and is distributed over several separate Continental hubs, including Level 3 Communications in the Americas, KPN in Europe and Africa, and Teleglobe in Asia and the Far East.

Capel admits that the company is currently targeting consumer-focused websites, but will be looking at B2B in the retail space shortly, as well as medium sized e-commerce websites.

"Brand new websites should absolutely use us, as we can shave off four weeks of development time," boasts Capel, pointing to the easy integration of TriggerMail's APIs.

Pricing is especially important for companies developing new websites, and TriggerMail is offered free-of-charge in return for text-based adverts appearing in the e-mail.

The other pricing model is "pay per delivery" based, and the website includes a price calculator to help companies estimate the costs, but typically it starts at 1.2 pence for up to 100,000 e-mails per month.

IBM Moves on Secure Mashups

Unveils its SMash technology to secure software mashups.

Through IBM's SMash (secure mashup) technology, information from different sources can communicate with each other, but the sources are kept separate to prevent the spread of malicious code.

SMash keeps code and data from each of the sources separated while allowing controlled sharing of data through a secure communication channel.

Mashups are defined by IBM as Web applications that pull information from multiple sources such as Web sites, enterprise databases, and e-mail to present a single view. But mashups have been beset by security risks, IBM said.

"What we were striving for was to have [mashups] interact with other information on a page in a secure manner," said David Boloker, CTO of emerging Internet technologies in the IBM software group.

SMash prevents information from one domain trying to access information on the page, Boloker said. But developers can allow access if they choose.

"[It] allows you to communicate with other parts of your Web page in a secure manner," he said.

"You're preventing JavaScript coming from another site taking over control of the Web page and not only taking control of the Web page, they could be trying to deliver erroneous information, could be trying to erase files on your hard drive, anything like that," said Boloker.

Donated to the OpenAjax Alliance

The technology is being donated to the OpenAjax Alliance and is to become part of OpenAjax Hub 1.1, which goes to general release in June, Boloker said. Once available, SMash can be used in Web pages in mashups. The OpenAjax Alliance is an organization promoting AJAX (Asynchronous JavaScript and XML) interoperability.

"I think SMash could potentially address a need in the AJAX market -- namely enabling safer client-side cross-domain access to multiple sites," said analyst Jeffrey Hammond, senior analyst for application development at Forrester Research. "This client-side cross-domain access pattern is becoming increasingly popular when developers want to mix in technology from multiple sites, but don't feel comfortable importing that code into their server domains."

Building on top of OpenAjax Hub is a strength of SMash, Hammond said.

Google Exec Praises, Criticizes Apple iPhone

While lauding Apple's iPhone as being innovative in the mobile space, a Google official Thursday later cited disadvantages of the device.

A Google official also cited disadvantages of the Apple iPhone, which is expected to compete with upcoming Google-backed Android phones.

Speaking at the eComm conference in Mountain View, Calif., Google's Rich Miner, group manager for mobile platforms, discussed the long-standing obstacles to mobile application deployment and how they are being overcome. Apple's iPhone was cited for its innovations.

"[Apple] came out with the iPhone and did a number of things right first time, first device," Miner said. Apple is offering a great user experience and a seamless experience between applications; Google is providing maps for the iPhone, he said.

But after hailing Google's own Android platform as another innovative step in the mobile arena, an audience member raised the question of whether to develop for planned Android phones or for the existing iPhone. The audience member asked how many Android systems would be on the market in a year.

"That's a hard question to answer," Miner said. Four original equipment manufacturers in November announced plans to build Android devices, Miner said. He added he has seen Android prototypes and that the number of OEMs probably has grown. The first Android handset is due in the second half of this year, he said. Android is under the jurisdiction of the Open Handset Alliance, which features Google.

Criticism

Miner also said he believes there will be a lot of Android phones out in 2009. Then he criticized iPhone.

"There are just certain apps you can't build on an iPhone," he said. For example, an application cannot run in the background when switching to another application, and interpreted languages cannot be supported in applications, he said. Multiprocessing applications also are not supported, he said.

"There's a lot of restrictions," Miner said.

Also during his presentation, Miner stressed the goal of opening up mobile devices to applications. These devices, though, have been inhibited by factors such as small screens and keyboards. There also has been a lack of openness in platforms, networks, and devices, said Miner. For example, a third-party application could be written in Java, but the target phone runs Symbian. "[It] turns out those two worlds don't talk to one another," he said.

The mobile arena also has had to deal with broken business models, such as a confused relationship between OEMs and carriers and having no one who understands the software. Developers also have had little freedom or power.

But problems are being solved, such as good technology and design overcoming UI constraints, said Miner. Touch-based screens represent innovation, for example.

Openness also is starting to emerge, he said. Android, for its part, started on the premise of openness, Miner said. Also, mobile platform control is shifting to software companies, according to Miner.

"Android is a complete platform, not just an OS," and features a software development kit, he said.

In another eComm presentation Thursday, Evan Henshaw-Plath, architect of the Fire Eagle project at Yahoo Brickhouse, discussed the location-based services offered by Fire Eagle.

Location-based services offer the promise of enabling people to put themselves on the map, so to speak, but they have been beset by issues such as people not wanting every application to know their location, Henshaw-Plath said.

Currently available in an invitation-only mode, Fire Eagle is intended to make location-sharing easy, he said. Users control access.

"We take location information in, we geo-code it, and we authorize other applications to get that information," Henshaw-Plath said.

"We hope to launch once we get enough applications built on the platform," he said.

Password-Stealing Hackers Infect Thousands of Web Pages

Hackers looking to steal passwords used in popular online games have infected more than 10,000 Web pages in recent days.

Hackers looking to steal passwords used in popular online games have infected more than 10,000 Web pages in recent days.

The Web attack, which appears to be a coordinated effort run out of servers in China, was first noticed by McAfee researchers on Wednesday morning. Within hours, the security company had tracked more than 10,000 Web pages infected on hundreds of Web sites.

McAfee isn't sure how so many sites have been hacked, but "given how quickly some of these attacks have come on, it does seem like some automation has gone on," said Craig Schmugar, a researcher with McAfee's Avert Labs. In the past, attackers have used search engines to scour the Internet for vulnerable Web sites and then written automated tools to flood them with attacks, which ultimately let criminals use legitimate sites to serve up their malicious code.

The infected Web sites look no different than before, but the attackers have added a small bit of JavaScript code that redirects visitors' browsers to an invisible attack launched from the China-based servers. This same technique was used a year ago, when attackers infected the Web sites of the Miami Dolphins and Dolphins Stadium just prior to the 2007 Super Bowl XLI football game.

The attack code takes advantage of bugs that have already been patched, so users whose software is up-to-date are not at risk. However, McAfee warns that some of the exploits are for obscure programs such as ActiveX controls for online games, which users may not think to patch.

If the code is successful, it then installs a password-stealing program on the victim's computer that looks for passwords for a number of online games, including the Lord of the Rings Online.

These online game passwords are a popular hacker target, in part because many online gaming resources can be stolen and then sold for cash.

Other Attacks

Widespread Web attacks such as this are becoming more common too.

In January, security vendor Finjan reported a widespread hacking effort that infected 10,000 Web sites with malicious code that attacked visitors and then installed data-collecting software on their machines.

This type of attack is attractive to criminals, in part because it can be hard to thwart. "It's more subtle than spamming a malicious executable file to billions of e-mail addresses," Schmugar said. "You allow the people to go to the sites that they normally go to and pull off a low-scale attack that flies under the radar."

Virtual private server

A virtual private server (VPS, also referred to as Virtual Dedicated Server or VDS) is a method of partitioning a physical server computer into multiple servers that each has the appearance and capabilities of running on its own dedicated machine. Each virtual server can run its own full-fledged operating system, and each server can be independently rebooted.

The practice of partitioning a single server so that it appears as multiple servers has long been common practice in mainframe computers, but has seen a resurgence lately with the development of virtualization software and technologies for other architectures.

Web 2.0: The Skills Behind the Buzzword

Is "Web 2.0" just marketing hype, or does it represent a substantial change in the way companies approach Web technology? More to the point, what does it mean for your career?

"Web 2.0" is a phrase tha's been around for a few years, but it still has some uncertainty around it. Is it just marketing hype, or does it represent a substantial change in the way companies approach Web technology? More to the point, what does it mean for your career?

Chances are good that you already know that Web 2.0 generally refers to Web-based applications and services that provide for greater collaboration among people and organizations. Web 1.0 comprised static content for site visitors, but Web 2.0 trumpets enhanced user experiences through mainstays like blogs, wikis, podcasts, forums and other such features. Mashups, another Web 2.0 staple, combine two or more separate elements into a single application, such as an interactive map overlaid with sortable restaurant locations. Web 2.0 hasn't overturned most companies' fundamental Web strategies, but it has created an ongoing need for particular types of skills.

Web 2.0 Skills

It's important to know that Web 2.0 isn't made up of a specific set of technologies, languages or tools, but rather a set of traits that make a Web site feel and behave more like a desktop application. It's about a rich, dynamic user experience that includes an open-source model at its core -- that is, users contribute to the experience.

There are no hard and fast programming languages or protocols that define Web 2.0, but many Web sites that fit the category make use of the Microsoft .Net Framework, AJAX, XHTML and HTML, Cascading Style Sheets (CSS) and support for user-generated content such as wikis or forums. Many firms are embracing Web 2.0 to create and improve their Web-based applications and Web sites. Companies are increasingly using AJAX, for example, to enable visitors to access new data on a site without having to refresh the entire page.

Employers of all sizes are seeking IT professionals who have Web 2.0 development skills and experience. Organizations look for individuals who have expertise with Web design, programming and applications creation. Candidates with Web 2.0 development skills are typically offered higher starting salaries than their counterparts who lack that expertise, according to the Robert Half Technology 2008 Salary Guide.

How to Gain Web 2.0 Expertise

If you haven't developed the right skills for Web 2.0-related initiatives, it's not too late. Because experts in this area are still in short supply, some firms are willing to invest in training for promising employees.

Even if your employer isn't currently pursuing Web 2.0 technologies, it will likely do so in the near future, so you may be able to make a persuasive case for building your expertise now. Getting up to speed may require less work than you anticipate. AJAX, for instance, is not a new technology, but rather a new take on established ones. Learning to leverage this tool may mean simply enhancing your knowledge of JavaScript, DOM, XML/XHTML and CSS.

As with most IT skills, many training options are available. Universities and private providers offer formal on-site classes and online training courses that you can take at your convenience. Entire Web sites are devoted to Web 2.0 development, offering resources ranging from research articles to message boards where people share information about the uses and challenges of the technology.

Putting Web 2.0 to Work

You'll need more than just solid programming skills, however, to make Web 2.0 stick. Web 2.0 is about serving the needs of clients and customers, which requires an understanding of what appeals to specific audiences. Experts in Web 2.0 often collaborate with marketing and other non-IT staff members to develop a company's online strategy. Basic classes in business communication, project management, Web design and consumer marketing can be wise supplements to technical training.

The hype surrounding Web 2.0 may fade, but the real changes it represents won't go away anytime soon. As a result, taking the time to acquire or improve your Web 2.0 skills can be beneficial to your career. With skilled developers in short supply, you'll be of greater value to your current firm and put yourself in a stronger position when searching for new employment.

Software Companies Want Patent Reform by Congress

An overhaul of the patent system and other measures to promote tech development efforts are top priorities of the Business Software Alliance.

The Business Software Alliance wants the U.S. Congress to pass a patent reform bill and executives at the trade group say they're optimistic that the legislation will move forward in the Senate soon.

Patent reform heads up a list of five legislative priorities the trade group released Thursday. The BSA wants Congress to approve the Patent Reform Act, which the House of Representatives passed back in September, but the legislation has been stalled in the Senate due to objections from inventors, pharmaceutical companies and some small tech firms.

Revisions Stuck

The Patent Reform Act would overhaul the U.S. patent system. Among other things, it would create a new way to challenge patents after they've been granted, and it would allow courts to change the way they assess damages in patent-infringement cases. Currently, courts generally consider the value of the entire product when a small piece of the product infringes a patent. The legislation would allow courts to base damages only on the value of the infringing piece.

That so-called apportionment of damages provision has been a major hang-up for the bill in the Senate. But Robert Holleyman, BSA's president and CEO, said the Senate may be moving toward passage of the bill in the coming weeks. Some changes may still happen to the bill, he said.

"We are optimistic it will be considered in the Senate, and we are optimistic that the final solution will address the inadequacies in the current patent system that have been well identified," Holleyman said.

Many large tech vendors, including BSA members Microsoft, Symantec and Apple, say it's too easy for patent holders to claim that a small piece of a tech product infringes a patent and to collect huge court awards. But some small tech vendors, independent inventors and pharmaceutical companies have opposed the Patent Reform Act, saying it would water down the value of patents and give small companies fewer protections against large companies that steal their ideas.

Late last month, more than 170 California businesses and organizations sent a letter to California's senators, saying they opposed the Patent Reform Act in its current form. "California's high-tech industries lead the world in innovation across numerous sectors," the letter said. "The cutting edge research they do is extremely risky and expensive, and strong patent protections form the basis upon which they are able to attract the investment necessary to commercialize a new product. This is especially the case for the hundreds of smaller, venture capital-backed firms in the state, many spun out of California's world-class research universities and private research institutes."

The Patent Reform Act would "increase costs to obtain and maintain patents, undermine patent certainty, incentivize infringement, and weaken the enforceability of patent rights and intellectual property protections," said the letter, signed by companies such as GlaxoSmithKline, California Wireless and Mi5 Networks.

But the U.S. patent system is "antiquated," BSA countered. "The Senate can take a giant stride toward stimulating innovation, spurring job growth, helping consumers and boosting U.S. competitiveness by completing action" on the patent bill, the group said in a position paper released Thursday.

Chief technology officers of several BSA members will come to Washington, D.C., next week to lobby for patent reform and other issues.

Other Priorities

Among the BSA's other legislative priorities:

-- Legislation that protects consumers' data while providing a technology-neutral framework for businesses that handle such data.

-- Funding for the U.S. Federal Bureau of Investigation to improve its IT focused on intelligence gathering, counterterrorism and information sharing.

-- Support for free trade agreements, which have come under fire in the U.S. presidential race, particularly from Democratic Senator Barack Obama. For most BSA members, more than half of revenues come from outside the U.S., Holleyman said.

Google: Android Won't Suffer From Incompatibility

Google's Android team isn't worried about wireless carriers building Android distributions that are incompatible with one another.

Google's Android team isn't worried about wireless carriers building Android distributions that are incompatible with one another, Google developer Dan Morrill tol the O'Reilly ETech conference on emerging technology in San Diego.

He also said security problems on Android-powered smartphones will be minor compared to the potential benefits.

Android is Google's open-source mobile operating system and software stack for building smartphone applications. Some observers have said the open source initiative could prod wireless carriers to open their devices to more third-party applications; others worry it will lead to numerous versions of Android that lack interoperability or that handset vendors might prevent Android apps from being used on their phones.

Morrill took an optimistic view when asked by an audience member whether he is worried about carriers distributing incompatible versions of Android.

"In the past, that problem has essentially been solved by contractual approaches," he said. "The holder of the platform won't license it to another company unless they agree to a certain set of compatibility rules. I view that as the stick approach and we prefer the carrot approach. We believe that this open mobile thing is a very powerful concept. We don't think anybody will necessarily have an incentive to build an incompatible platform."

Though Google has trumpeted the open nature of Android, the platform uses the Apache open source license, which allows some restrictions. As a result, mobile vendors will be able to make changes to Android code without contributing those innovations back to the open source community, the Google-led Open Handset Alliance states on its Web site.

Morrill touched on several other Android topics during his ETech session, titled "Connecting your life to the Web with Android."

Security Issues

Security was one point of discussion. The vendor Core Security this month said it found multiple vulnerabilities in the Android software development kit (SDK). In response, Google noted that the current version of Android is an early-look release and that it will undergo a full security review before applications running on the platform get in the hands of users. (Compare security products.)

Morrill acknowledged that Android-powered phones will inherently be more susceptible to attack than phones without full Web interfaces, but said the risk will be small and outweighed by the advantages of a rich Web-surfing experience. He was responding to an audience member who asked whether Android applications could crash a phone or crash programs on the phone, such as emergency-call applications. "[Android] will probably expose users to a little more risk than they currently are exposed to," he said. "It's a trade-off. You do incur a little more exposure and risk in exchange for a vast amount more potential."

Morrill also was asked whether it will be possible to port Android to Apple's iPhone. It could happen, he said.

"We're not paying attention right now to existing devices," he said. "It's really up to anyone who wants to do the work."

It's even possible Android could be used on a mobile device that's not a phone, he said.

Android phones are expected to hit the market this year, but the Android SDK is still in an early stage, Morrill noted. As Google makes improvements, the company wants to make sure applications are easy to build and don't suffer from the browser quirks that sometimes affect programs built using Asynchronous JavaScript + XML (AJAX) scripting components. "We're trying to take the best aspects of development and leave the worst behind. This isn't just AJAX on a phone," he said.

Morrill, a wine enthusiast, says he maintains an online spreadsheet of various wines and their prices and quality to help inform his purchase decisions. He's looking forward to using an Android-powered phone to examine and update his wine spreadsheet during future trips to the wine aisle of a supermarket.

Behavior-Based Malware Detection Software on the Way

NovaShield says its product will block drive-by downloads of malware through its behavior-based detection method, which would alert users that suspicious activity is occurring.

Start-up NovaShield says that in May it will release its first security product for the PC, behavior-based detection software designed to catch, quarantine and eradicate malware not ordinarily detected by signature-based antivirus products.

The Windows-based NovaShield software will recognize activity from keyloggers, Trojans, and botnets and block them from executing. NovaShield, primarily intended for consumers as it has no central management, will block drive-by downloads of malware through its behavior-based detection method, which would alert users that suspicious activity is occurring.

"In this instance, there would be an alert to the user about Web activity," says Somesh Jha, chief scientist and co-founder of NovaShield, along with CEO Praveen Sinha. "Once we flag these executables as suspicious, we block them. But we do offer the user a way to override it." Jha is also a professor of computer science at the University of Wisconsin at Madison.

Sinha says the start-up, which has nine employees and was officially founded in 2006, this month received a half million dollars in small tech business funding from the National Science Foundation, though it has also aggregated $4.7 million in angel funding from undisclosed investors.

Several antimalware vendors, including McAfee, Symantec, Trend Micro and WebSense, are also tackling the problem of drive-by downloads, and offer versions of their own signature-based and behavior-based detection (compare intrusion prevention products and compare antivirus products).

The approach to malware detection that NovaShield is taking probably bears the most resemblance to that of behavior-based security product provider Sana Security, Jha says.

The NovaShield software monitors files, registry, process and events on Windows XP-based machines, using what Jha calls NovaShield's own "specification-based monitoring" to ensure secure interaction between application programs.

Pricing for the NovaShield software hasn't been announced, but once it's out in May, NovaShield plans a free trial version to be available.

What Apple Should Announce

On Thursday, Apple holds court with the media to outline its plans for the iPhone, starting with news of the iPhone Developer's Kit. We get specific on what we want them to address.

For those of us who spend our days covering the tech world, Apple has always been a conundrum. So I'm not going to pretend I know exactly what sort of announcement the company is planning to make tomorrow at its Cupertino headquarters. What we do know is that it will be related to a long overdue software development kit (SDK) for the popular iPhone. But personally, I hope tomorrow's press event will include a few more things.

Missing Apps from Apple

Yes, I realize that the whole point of an SDK is to let third-party programmers write apps for the platform, but Apple's work on the iPhone/iPod Touch platform is far from finished. Notably, the company has a moral obligation to integrate an iCal-friendly To Do feature into its little mobile buddies. I have a hard time believing that there isn't a single person at Apple who actually needs to get things done, and it's well past time they built this painfully absent feature into the iPhone and iPod Touch.

Also nice would be a port of iChat, both for iPod Touch users on Wi-Fi and iPhone users. Sure, it's nice that iPhones format SMS messages as iChat-style discussions, but as more of us have begun to build IM into our daily business lives, the ability to chat with our colleagues on the road just as we would at our desks has begun to make real business sense. Plus, it would be fun.

And of course, Apple needs to give us a little check box in iTunes for syncing notes between our mobile devices and our desktops. The half-baked Notes feature in Apple Mail really doesn't do the trick, and even if it did, it would only serve users who actually have Macs. This one seems like a no-brainer to me.

Ultimately, whether Apple releases these apps itself or not, third party developers will jump in and plug these gaps. Some have already done so with Web apps. But Web apps don't work on airplanes or anywhere else that you can't get a cellular signal. Plus, Apple wouldn't have left such obvious features out of Mac OS X, and I'd like to see the company fill these holes for itself.

3G Wireless

Thanks to an early heads-up from AT&T, we've all known for months that a 3G iPhone is in the works. And frankly, the fact that the original device was rolled out with EDGE instead was both shocking and disappointing. We've all waited long enough to see how this thing can perform on a true third-generation network, so c'mon already.

More Carriers

Apple's exclusive deal with AT&T must have seemed like a good idea on paper before the product was announced, but by now Jobs & Company really ought to be thinking up a way to weasel out of that contract. After all, it's probably the single biggest hurdle that keeps most of us who've not yet purchased an iPhone (and would like to) from running out and grabbing one.

For those whose phone choice is dictated by which carrier their employer has signed on with, or whose entire family is already embedded with a carrier other than AT&T, the lure of cool cannot break through the shackles practicality. But if Verizon, Sprint, and T-Mobile customers could simply swap out their handset for an iPhone, I'm guessing a lot of users would jump at the chance.

Microsoft Shows Off Collaborative Search Tools

A new research project underway at Microsoft will let users collaborate.

During an annual conference to display internal research, Microsoft demonstrated a project designed to help people collaborate on search.

After downloading a small program, a SearchTogether user will see a sidebar in their browser where they can sign in using their Live ID and invite any buddy to join in a collaborative search. A drop-down menu shows collaborations the user might have in progress.

After choosing one collaboration, a user can view the query history of each collaborator. Clicking on a query reveals the results in the main view of the browser. That eliminates multiple people conducting repeat searches, said Meredith Morris, a Microsoft researcher who demonstrated the software.

Users can also do a split search, which means that one collaborator does a search and the results are split between the two collaborators. Each can investigate their set of results so they don't duplicate work.

The users can also write comments in a small field attached to an individual Web page. In the sidebar, users can view sites that their collaborators have also viewed and read their comments about the site.

The software could help people in their personal lives to plan holidays or research what kind of car to buy, Morris said. Similarly, it could be useful to workers who are researching a topic for a project.

SearchTogether is expected to be available soon as a free download in beta form.

Morris demonstrated the technology during TechFest, an annual event on Microsoft's campus in Redmond, Washington, where the research group shows off projects to employees.

Microsoft also discussed another collaborative search tool, CoSearch, that might be ideal for a group of students researching a subject using a shared computer. Using a cell phone connected to the computer via Bluetooth, students can view the page displayed on the computer on their phones and click on a link to open another page on their phones. They can also send search queries from their phones to the PC, and the queries are listed in a queue in a sidebar in the browser on the computer. Then the students can choose which query they want to explore on the shared PC.

Microsoft has also developed a way to plug multiple mice into a single computer. In a classroom, a teacher can project the computer screen and each student can have a mouse that has a unique cursor on the screen. It's another way to foster collaboration, particularly in situations where people must share computers, said Craig Mundie, chief research and strategy officer for Microsoft.

Microsoft has 800 researchers working in its research offices around the globe. The researchers follow a variety of projects, many of which become part of Microsoft commercial products.

The company believes in conducting such widespread research because "you don't know what the future is going to hold," said Rick Rashid, senior vice president of Microsoft Research. "You don't know who your next big competitor is, or what the next big problem you're going to have to solve is." The group essentially produces a reservoir of technology that can be brought to bear when needed, he said.

YouTube to Improve Usage Metrics

New data about Google's YouTube video viewership will be available to marketers.

Google's YouTube will soon give marketers more data about viewership of its videos, so that they have a better understanding of clips' reach and effectiveness at boosting brand awareness and sales.

The online video site plans to make more granular metrics available in this year's second and third quarters, including data about the usage of YouTube videos that are embedded in external sites, said Brian Cusack, YouTube sales team manager.

"YouTube has enormous amounts of data, but not great reporting on that data yet," Cusack said during a keynote speech at the eRetailer Summit in Miami on Monday.

YouTube, which gets about a third of its traffic from the U.S. and has almost 20 country-specific sites, is building models to distinguish content that is universally interesting from content that is locally interesting, in order to make that useful for its advertising customers, Cusack said. "That's an enormous initiative for us in 2008," he said, adding that YouTube is very interested in working with retailers with international marketing strategies.

During his speech, Cusack explained how YouTube, the world's most popular online video site, is being used by companies for marketing purposes, a fairly recent endeavor.

Although YouTube recently celebrated its third birthday, it only introduced significant advertising opportunities for marketers in last year's third quarter, and it is still learning how to use the site for these purposes, he said.

For example, one thing YouTube isn't doing a lot of is conventional online advertising like sponsored search ads and banners. "We have a lot of unsold inventory [of that kind] on YouTube," he said.

The reason: YouTube doesn't run ads at all along with videos submitted by regular users, because of concerns about potential copyright violations in those clips and because of lack of control and knowledge over those clips' content, Cusack said. Instead, ads only appear with professional videos from YouTube's roughly 1,500 commercial partners, like the National Basketball Association, CBS and Universal Music Group.

Where YouTube is seeing success among its advertising partners is in the use of its site in a way that is "authentic to the platform," Cusack said. This means that videos shouldn't be repurposed television ads, Cusack said. Instead, viewers should feel that the video was designed with the YouTube context in mind. "Let them know that you know you're talking to them on YouTube," he said. Moreover, the videos should encourage interactivity and engage viewers in conversation. That's an effective way for a company to use its YouTube presence to promote its products and beef up its brand, he said.

He gave several examples of successful marketing campaigns that employed YouTube recently, like those launched by Heinz, which held a contest for its customers to create a 30-second spot for the company; and the "Lions for Lambs" movie, which also held a contest for viewers to send clips with socially-conscious messages.

Cusack also shared some impressive usage statistics for the site. Every day, hundreds of thousands of clips are uploaded and hundreds of millions are viewed, he said. On a monthly basis, the site has about 68.5 million unique visitors and 3.7 billion page views. Users spend an average of 54 minutes on the site monthly. Visitors are spread out fairly evenly among all age groups, he said.

Microsoft Adds to SharePoint Collaboration Capabilities

Microsoft unveiled its SharePoint collaboration platform for hosted SharePoint and Exchange services.

While Microsoft's Internet search strategy involves courting Yahoo, its behind-the-firewall search efforts this week center on the company's SharePoint collaboration platform.

Microsoft will unveil two search products based on SharePoint, including a free product, at its Office SharePoint Conference 2008 event in Seattle on Monday. The company also is taking the next steps with its hosted SharePoint and Exchange services and will announce plans for linking SharePoint with the company's Silverlight display technology.

A lot of attention has been given to Microsoft's proposed US$44.6 million buyout of Internet search company Yahoo. But the unveiling of SharePoint search services this week have nothing to do with Yahoo, said Kirk Koenigsbauer, general manager of the Microsoft Office business platform team. Instead, the two products being introduced, Microsoft Search Server 2008 and Microsoft Search Server 2008 Express, are for internal enterprise usage and built on the SharePoint code base.

"They're used for what's called enterprise search, which is search inside the firewall," Koenigsbauer said. Users could, for example, search for an employee claim form, a Word document, a report, or a map of a building on the corporate campus. "A single Search Server can crawl up to 50 million documents in what we call the index," he said.

Search Server 2008 Express is a free product for searching one server. Search Server scales to as many servers as desired, Koenigsbauer said. The predecessor to these products was Microsoft SharePoint Server for Search. The new versions add capabilities, such as a federation feature, which reaches out to different services and pulls them into a new set of results.

The predecessor to these products was Microsoft SharePoint Server for Search. The new versions add capabilities, such as a federation feature, which reaches out to different services and pulls them into a new set of results.

In the hosted space, the company is announcing a broad-based beta of Microsoft SharePoint Online. A previous beta was limited to users with at least 5,000 seats. "Now, enterprises and [mid-size] businesses can subscribe to SharePoint in a subscription business model and take advantage of the choice we're now providing customers," in the ability to access and use the technology, said Eron Kelly, director of product management for business online services at Microsoft. "We believe that by 2010, at least 25 percent of our Office users will be using some kind of [online] service provided by Microsoft," he noted.

The company also is offering a broad-based beta version of its Exchange Online hosted product.

General availability of both the Exchange and SharePoint hosted services is planned for the second half of 2008. The new online services will let users access services like e-mail, calendaring, and Web conferencing at predictable subscription prices. As with most SaaS (software-as-a-service) offerings, users also can get up and running quickly. "You can go from zero to SharePoint in 60 seconds," Kelly noted.

While there is limited customization capability in Microsoft's current hosted platform, plans call for expanding this in the future, he said. Currently, customers can use templates but cannot do custom-coding.

At the conference, Microsoft also will announce Silverlight Blueprint for SharePoint. Silverlight is Microsoft's browser plug-in display technology for rich Internet applications. The blueprint includes sample applications combining Silverlight and SharePoint, detailed guidance and best practices, and rich data visualizations and interactivity.