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Enterprises to increasingly invest in mobile through 2011

Thu, 03/25/2010 - 5:15pm

Organisations are ramping up both business-to-employee (B2E) and business-to-consumer (B2C) mobile spending, according to Gartner, which says that investments in mobile applications and technologies will increase through 2011.

The analyst firm has identified 10 mobile technologies that will evolve significantly through 2011 and expects this evolution to impact both short-term mobile strategies and policies.

Technologies to watch

Gartner has highlighted certain technologies and according to Nick Jones, vice president and distinguished analyst at this firm, every organisation should focus on them for growth and success.

He expects several customers or employees to adopt the following technologies and believes they will address particular mobile challenges that organisations will face through 2011: Bluetooth (3 and 4); The Mobile Web; Platform-Independent Mobile AD Tools; Mobile Widgets; App Stores; Enhanced Location Awareness; Cellular Broadband; Touchscreens; Device-Independent Security; and M2M.

Gartner predicts two new Bluetooth versions to emerge by 2011. While Bluetooth 3 will introduce 802.11 as a bearer for faster data transmission, version 4 will enable communication with external peripherals and sensors. More than 85 per cent of handsets shipped globally will include some form of browser by 2011 and the popularity of mobile widgets will increase by the same period.

More diverse applications

The analyst firm expects the mobile platforms to become more diverse through 2012 and thus there will be more demand for solutions that can lower the issues associated with delivering installable applications to several platforms.

People are high on smart phones and other mobile devices and in future, App stores will be the primary (and, in some cases, the only) way to distribute applications to these products. More than 75 per cent of devices shipped in mature markets will include a GPS by the end of 2011 and this technology will be the primary, but not the only, means of establishing handset location.

The availability of multi-megabit wireless broadband performance will continue to grow during 2010 and touchscreens will be included in over 60 per cent of mobile devices shipped in Western Europe and North America in 2011.

The M2M market is growing at more than 30 per cent per year and a good range of both national and multinational M2M service options will be available in mature markets in 2010 and 2011. Gartner says enterprises should also focus on device-independent security technology that can enable CIOs to deliver applications that can run on a variety of devices while reducing security risks.

Apple releases 3.0.2 update for Aperture

Thu, 03/25/2010 - 5:03pm

Still running into trouble with Aperture 3, even after the recent Aperture 3.0.1 update? Not to worry, Apple has just posted yet another update for Aperture 3 users.

Aperture 3.0.2 does add one very significant new feature, buried at the very bottom of the release notes: iPad compatibility. This will allow users to import photos from the iPad into Aperture, and to sync photos in their Aperture library with the iPad. There are also a few new minor features, like the return of the ability to navigate through images in the viewer using scrolling, and a display for how much disk space you need to import an existing iPhoto or Aperture library.

Beyond that, there is a wealth of fixes for general stability and issues. Some of the fixes address lost data and slowdown when importing iPhoto and Aperture 2 libraries. There is a series of fixes to preserve the hierarchy of folders imported into Aperture. The 3.0.2 update also resolves a number of issues with Aperture's new Faces feature, along with issues where presets and image metadata would be missing, incomplete, or fail to be saved.

This patch aims to stop crashes associated with adjustments, both from imported libraries and those applied by Aperture 3 itself. There's also a handy fix for a crash bug associated with emptying Aperture's trash.

Finally, there's a minor update for iMovie 09, called iMovie 8.0.2, which allows iMovie to play nicer with video files stored in an Aperture library.

More details can be found in the release notes for Aperture 3.0.2.

10 Ways Microsoft Tried and Failed to Rule Mobile

Thu, 03/25/2010 - 5:02pm

Take a tour through Microsoft's forgettable, regrettable mobile OS history.

Google: A bull in China's shop

Thu, 03/25/2010 - 4:45pm

So Google finally made good on its promise to uncensor its Chinese search engine and/or leave the Chinese market. And China is now making good on its promise to make Google very sorry for ever bringing it up.

Gotta say "the G" was pretty clever about it. Redirecting Google.cn to Google.com.hk seems like a smart way to stay in China while not staying in China. And Google's "Mainland China service availability report" -- which displays which Google services Beijing is mucking with on any particular day -- is sheer brilliance.

[ Want to cash in on your IT experiences? InfoWorld is looking for stories of an amazing or amusing IT adventure, lesson learned, or war tale from the trenches. Send your story to offtherecord@infoworld.com. If we publish it, we'll keep you anonymous and send you a $50 American Express gift cheque. ]

(I understand negotiations between the two parties got pretty heated near the end -- at least, according to this video.)

Symbolically, Google's public repudiation of China is huge. The company is walking away from potentially millions of dollars in ad revenue.

In practical terms, though, it doesn't do much. China is still blocking search results, and it's retaliating by forcing the country's two largest telecoms, China Unicom and China Mobile, to pull their deals with Google over search engines and Android phone manufacturing. Chinese Web portals are now backing out of their agreements with Google -- no doubt with some strong "encouragement" from Beijing.

This morning, Google's U.S. corporate site was hacked and redirected to the Chinese version, according to a report in the U.K.'s Guardian. No clue whether this was China's doing or just somebody's idea of a joke (I'm guessing the latter).

I'm wracking my brain trying to come up with another example of a major U.S. corporation saying "bite me" to a major national power because it didn't like that government's repressive policies. If the government is pro capitalism, U.S. companies generally do not appear to care how they treat their citizens. Am I wrong about this?

Of course, it's not clear that Google really cares either -- because this all came about after Google got cyberpunk'd by hackers inside China. To my admittedly warped mind, it still smacks more of revenge than anything principled.

James Fallows of the Atlantic Wire had an interesting conversation with Google chief legal beagle David Drummond, in which he states:

The initial premise, that it all started from a hacking episode, is not quite right. We did have a hacking incident. Most hacking incidents that you see are freelancers -- maybe government sponsored, maybe not. ... This attack, which was from China, was different. It was almost singularly focused on getting into Gmail accounts specifically of human rights activists, inside China or outside....There were political aspects to these hacking attacks that were quite unusual.

That was distasteful to us. It seemed to us that this was all part of an overall system bent on suppressing expression, whether it was by controlling internet search results or trying to surveil activists. It is all part of the same repressive program, from our point of view. We felt that we were being part of that.

Pure speculation here: I'm guessing that ever since Google decided to enter the Chinese market, there's been a roiling internal debate among Sergey, Larry, and Eric about how to deal with China's repressive policies, and that the hacking incident flipped one or more of them over to the anti-China side. If I had to handicap it, I'd say Sergey was in the "screw China" camp, Eric was in the "let's just keep our heads down and make millions" crew, and Larry was the swing vote. Just my own mental fantasy playing out here. (If have got inside info to the contrary, please share.)

This drama is only just beginning to unfold. I don't see China backing down, ever. I don't see any other U.S. Internet giants following Google's lead, or Uncle Sam doing anything more than issuing vague statements of support for Internet freedom. The question is whether Google will stay the course or will its resolve eventually melt as it loses its still-tiny foothold in the world's largest market.

Will Google stay out of China? Should it? And what about Microsoft and Yahoo? E-mail me: cringe@infoworld.com.

Oracle revenue up, but charges drag down profit

Thu, 03/25/2010 - 4:40pm

Fueled by growth in new software licenses, Oracle revenue for its fiscal third quarter, ended Feb. 28, increased 17 percent from the same period last year, hitting US$6.4 billion, though earnings declined due in part to restructuring charges incurred by the company's purchase of Sun Microsystems.

Oracle reported third-quarter earnings of $1.2 billion, a drop of 10 percent compared to the same period last year.

Excluding special charges, earnings per share grew 9 percent to $1.9 billion or $0.38 per share, with $6.5 billion in revenue. Analysts polled by Thomson Reuters had on average predicted earnings per share of $0.38 and $6.35 billion in revenue.

New software license revenues, which are considered a key indicator of growth and market temperament, grew 13 percent to $1.7 billion.

Software license updates and product support revenue continued to be key for Oracle's performance, rising 13 percent to $3.3 billion, or just over half of all revenue.

Total hardware systems revenue was $458 million, but the figure does not represent a full quarter, as the Sun deal closed in January.

Oracle's work on integrating Sun is going well, and Sun products will make "a significant contribution" to Oracle's fourth-quarter earnings, co-President Safra Catz said in a statement.

Oracle's Exadata data warehousing machine is "the fastest-growing product" in company history, with nearly $400 million in the sales pipeline, co-President Charles Phillips said in a separate statement.

It's become a tradition for Oracle executives to bash applications rival SAP during earnings calls, but Thursday's call featured an especially large dose of trash talk.

CEO Larry Ellison bashed SAP's technology, particularly its ABAP programming language. Oracle's Java-based Fusion Applications -- set for release in the second half of this year after a long delay -- will give his company a major edge, Ellison said.

Fusion Applications will be sold as on-premises software, integrated appliances, and in on-demand form.

"We're going to go compete with SAP's 25-year-old technology. Once we deliver Fusion, we're going to be well-positioned to challenge for the number-one slot [in applications]," Ellison said.

He neglected to mention that SAP developers nowadays also have the option to program in Java.

Ellison acknowledged that Fusion Applications have been a long time coming but said it was for the best.

"We did not make the mistake of trying to rush this out early. Were we late with Fusion? Yes, we were late." But that is preferable to releasing a poor product, he said.

With the Sun deal complete, Oracle's broader strategy involves selling customers integrated systems spanning hardware, storage, middleware and applications.

To this end, "there will be other clusters like Exadata ... coming out pretty much for all of the software we sell," Ellison said.

Oracle partnered with Hewlett-Packard on the original Exadata machine, but jumped to Sun technology for the second version, which is aimed at transaction processing as well as data warehousing.

Oracle wants to compete with IBM's "biggest, best box," Ellison said. "We're going to get better and better at large-scale transaction processing."

Google Jumps Into Social Bookmarks Game

Thu, 03/25/2010 - 4:20pm

Google jumped into social bookmarking this week with its new experimental Bookmarks feature, Lists. Lists lets you save links--handy, for example, if you're planning a vacation or compiling information for a presentation--then share them with others or keep them private.

Google has incorporated a number of cool features into lists, making its bookmarking feature easy to use and a lot more useful. Here's a rundown of five helpful hints to get you started.

1. When you perform a Google search, you'll notice a star icon next to each result. Clicking this star will automatically add the link to your bookmarks, whether it's a location or a website. From there, you can pick and choose which ones to copy to a list that you create and manage.

2. Clicking on "My lists" on the left side of the screen shows you an overview of the links you've saved to that list. You can add a comment or note to the list, for instance if you'd like to remind yourself why that link is important. If you choose to make the list public, others can comment on the links you're sharing. Lists are set as private by default.

3. Google has built in a handy tool for adding more links to your lists. By clicking the "Add Stuff" button, you can type in a keyword--or even part of a URL, if you can't remember a specific site--and Google will suggest websites related to your query.

Or, you can use the "More" button to search specifically for videos, images, results in your geography and even items from your Google Docs.

4. If your bookmarks are saved on another site or are stored on a browser, you can import these in a few quick steps. First, export your bookmarks as an HTML file. You can import these bookmarks to Firefox, then use the Google Toolbar to import them to Google Bookmarks. You can find more information on importing bookmarks here.

5. If you've used Labels to organize your bookmarks, creating a list from these is easy. Just click the label, located on the left side of the screen, then choose "Create List."

What do you think about Google Lists?

Staff Writer Kristin Burnham covers consumer Web and social technologies for CIO.com. She writes frequently on Twitter, Facebook, LinkedIn and Google. You can follow her on Twitter: @kmburnham.

Using Portfolio Management to Meet Company Goals

Thu, 03/25/2010 - 4:16pm

The fundamental principle of portfolio management is that you first choose the goals for your portfolio and then select the investments that will achieve them. For investments in change, these goals are expressed as the results you want to accomplish (with corresponding measures and milestones) and the shape of the enterprise that the investments must deliver.

You can use these signs to assess whether your enterprise manages its investments in change as a portfolio:

* As your goals change--for example, from efficiency to growth--so does your portfolio.

* You select projects based on their contributions to the portfolio, rather than their standalone merits. This means turning down proposals that have positive ROI individually but don't fit the goals of the portfolio.

* You explore what each proposal would mean for the shape of the enterprise, considering factors other than cost. This can mean investing in projects--such as redesigning a pivotal process--that have a low or negative return but are key to the enterprise's future. It can also mean rejecting projects that would undermine the organization's direction.

Better Investment Decisions

It's common for enterprises to treat the cost of a portfolio as the primary constraint when making decisions. But this approach can conceal other, possibly more significant, factors that drive the portfolio's success. These include the overall value that the portfolio is expected to deliver and the enterprise's capacity to make and exploit the changes that the portfolio represents. Exploring other prioritization criteria can result in a more productive and efficient portfolio and a higher project success rate.

Chris Potts is corporate IT strategist and CIO futurist with Dominic Barrow.

Taking the Temperature of the CEO-CIO Relationship

Thu, 03/25/2010 - 4:11pm

While they are not Felix Unger and Oscar Madison, a company's CEO and CIO can at times make a fairly odd couple. Differing agendas create significant challenges from the outset. At the same time, we all understand it is critical for the CIO to engage the CEO and senior business leaders in discussions of IT investments. Considering those somewhat contradictory points, what exactly is the state of the union between business and IT leaders?

[For more data on today's CIOs and their relationship with the business, see CIO's 2010 State of the CIO results]

A few years ago, Diamond Management & Technology Consultants launched a broad annual study of various business leaders' "Digital IQ." Through the Diamond Digital IQ research, we seek insights into the challenges companies face associated with connecting the enterprise's strategic objectives with the actual business value--which is often reached several years after the big ideas are hatched.

The 592 survey respondents this year comprise equal parts business leaders and IT leaders for purposes of balance. The survey covers an array of issues, ranging from attitudes about IT's contribution to corporate competitiveness, to business/IT alignment, to IT management practices. The industries included in the survey are large or very large companies in banking, financial services, insurance, and consumer products, among others. Some of the most instructive responses in Digital IQ 2010 relate to the senior business executive support for IT.

Our CEO or senior-most business leader is an active champion in the use of information technology to improve our business.

The promise of a fully integrated organization in which there are no formal "business" and "IT" distinctions must begin at the top. IT's capability must be viewed by all business leadership as both a driver of growth and a tool to improve efficiency. While 64 percent of respondents agree with this statement, I find it incredible that the figure is not in the 80 percent to 90 percent range. I was reminded by the CIO of an oil & gas company that "IT's role is not always strategic, and that's ok." In this case, I would expect the CEO to still be an active champion of IT to improve the business operations and efficiency (and the CIO to work hard to develop a broader perspective of IT's potential).

Our CIO is very involved in the business strategy development process.

Participants' responses here provide further insight into how much senior management teams buy into the importance of IT. Only 54 percent of respondents agree with this statement, which make you wonder what the other 46 percent are doing. An insurance executive told me a story of a claims initiative that some colleagues in "the business" presented to him, and which was later approved. The initiative involved the use of images, video, and audio to better understand the claims and so that experts could do more of the reviews and QA remotely. Late in the project, one of the managers came back to him and admitted a big mistake that would cost them several million dollars. Apparently, they forgot to estimate any storage for all of the digital media.

Business executives are very confident in the company's IT capabilities.

Half of our respondents think the business leaders have either neutral or negative attitudes in terms of IT's capabilities. My colleagues, Peter Weill and Jeanne Ross at MIT's Center for Information Systems Research, believe that service delivery is the basis for everything else. Before worrying about improving program management or executive dashboards, make sure that the basic IT services are in order. The CIO at a beverage company, for example, was having significant support issues with her peers in the business units. As a result, she set-up a "concierge" service specifically to deal with their needs and questions. This may seem extreme, but it reduced the noise and improved buy-in.

Our CIO is recognized as a BUSINESS leader, not just as a leader of IT.

Less than half the survey participants say the CIO is recognized as a business leader. This is mind-boggling--is the head of HR a business leader? Maybe he or she is just a "people leader," not a business leader. This is Exhibit A for why the "business-IT" line of demarcation needs to be erased once and for all. I believe the way a CIO allocates time is directly related to "business'" perception of the CIO. On that note, I plan to dedicate an upcoming article to how CIOs spend their time.

The CIO lacks productive working relationships with the business leaders.

Forty-seven percent say they have neutral or negative perceptions of the CIO-business working relationship. This makes me wonder which among the following might be going through respondents' heads as they answer this question: "This is a problem and I should do something about it." "The problem is on the other side. When will the business (or IT) get its act together?" Is the onus solely on the CIO to develop a good working relationship? This reminds me of my mom saying "it takes two to tango" when I would get in a fight with my sister.

The value gained from IT in an organization depends on everyone's ability to understand it and access it. The attitude and culture required to embrace IT starts at the top. With all the talk in Washington of politicians reaching across the aisle (or failing to do so), these initial Digital IQ results show us that "bipartisanship" between business and IT could still use a boost as well.

Chris Curran is Diamond Management & Technology Consultants' Chief Technology Officer and managing partner of the firm's technology practice. He writes the CIO Dashboard blog at www.ciodashboard.com, and can be reached at Chris.Curran@diamondconsultants.com or @cbcurran on Twitter.

Why Crowdsourcing Isn't Always Wise

Thu, 03/25/2010 - 4:07pm

Your book, You Are Not a Gadget: A Manifesto, challenges the value of crowdsourcing. What's wrong with the hive mind on the Internet?

The fad is to assume that groups are always smarter than individual people. Somehow some magic wisdom will come about if you form a mob instead of having people work as individuals.

It does work sometimes: A crowd of buyers sets a price in a marketplace. But it only works if you want output of a single result. Otherwise, you get design by committee. You get features added to services without anyone looking at the whole complex picture of what you're trying to build.

There's nothing wrong with soliciting feedback and ideas, but you can't design a complex system that way. You get appeasement to this or that concern, like the health care bill. It breaks the heart of every idealistic person to say this, but sometimes there can be too much democracy.

The equivalent for CIOs might be scope creep on a project. No one's saying "no."

That's not how you create real value. CIOs and IT departments should look at the perception of their value. CEOs will say, "Why are we paying you if the crowd can do it?"

What should IT leaders do about that?

Know that crowds and people are different. Every design decision should be worshipful of the value of individuals and their separate contributions and knowledge, rather than averaging everything out to please an amorphous crowd. You shouldn't have stealth socialism enter into a company through the IT department.

Explain what you mean by 'stealth socialism.'

One of the big crazes is open software development where people work as if on the Linux model. There's a weird ideology among some developers that if software is open and crowdsourced, it's intrinsically better. Mediocre software made openly is sometimes more valued than other software made in a closed way.

People perceive value that isn't really in the code. It doesn't matter how software was created. You should make decisions based on the raw facts: What does this software cost and will it do what I need?

Why does it happen?

There are two stakeholders who benefit from it: lazy software designers and users who avoid responsibility because there's no one person accountable for the final product. No one gets the blame when it fails. When money's on the table, and accountability's on the table, people get smarter. Good development is about individuals who are competent and can be held accountable.

Do CIOs have a moral responsibility to try to get their companies to bring civility to the Internet?

That's an extremely interesting question. When you crowdsource or allow anonymity on the Internet, people act as a mob. They get mean. Does it happen inside enterprises? Sure. I've seen a degree of rudeness or cynicism that might not have happened if there were a less mob-like quality to the structure of the enterprise. I can't say I have a solution, but to mitigate it, you have to be aware of it. Occasionally, there's the person who might have something important to say who won't say it unless they're anonymous, like a whistle-blower. But anonymity should be an extraordinarily unusual option. It shouldn't be the standard.

What are you working on now?

Advanced user interfaces where your body is an avatar that uses multitouch technology to interact with data. In 10 years, people will look at business models in video-game style, not in a spreadsheet. Human brains are better optimized for that than for looking at a bunch of cells with numbers. Anything that works in entertainment will eventually find its way into business productivity. It's just slow.

Jaron Lanier is scholar-at-large with Microsoft. The views he expresses here are his own.

Contact Senior Editor Kim S. Nash at knash@cio.com. Follow her on Twitter at www.twitter.com/knash99

Speak Up to Help Shape the Future of Broadband

Thu, 03/25/2010 - 3:59pm

The FCC vision for the future of communications in the United States, and its proposals for getting from where we are to where we need to be are imperative to maintaining a level playing field for business in America. The limited bandwidth is running out, and the digital divide continues to grow, and businesses on the wrong side of that divide will find it very hard to keep up with the competition.

Imagine the Indy 500 race. As long as all of the drivers have vehicles capable of producing 650-plus horsepower and achieving speeds in excess of 220 miles per hour everything is fair and it comes down to the wit and skill of the driver. Now, give half of those drivers a factory-standard, street-legal Chevy Camaro and see how they fare.

Businesses located in major metropolitan areas may not even realize the growing problem exists. Major metropolitan areas not only have high-speed wired and wireless broadband available, but typically have access to multiple providers, and even multiple options--like cable mode, DSL, or satellite--to get it.

However, businesses located off the beaten path are at a disadvantage. Private sector interests are not willing to invest any significant money to build an infrastructure that reaches to rural America. The population is smaller and the return on investment is virtually impossible to achieve.

Case in point: while the major wired and wireless broadband providers are balking at FCC initiatives to drive expansion of 100mbps broadband access to 100 million American homes, Google is pursuing a pilot test to push the envelope and demonstrate 1 gbps broadband. There is a major gap between the status quo, the FCC vision, and what is really possible if the investment is made.

Is it a crisis, though? At a hearing in Washington DC today, Representative Joe Barton of Texas--the top Republican member of the House Energy and Commerce Committee--pointed out that 95 percent of Americans already have access to broadband, and that it was the private sector--not the federal government--that invested in that infrastructure.

There are multiple issues being addressed within the National Broadband Plan, though--only one of which is the aspect of expanding broadband access to more Americans. The other factors involved include ensuring that private sector broadband providers have an incentive to push the envelope and continue to invest in innovation rather than stagnating.

When business was done primarily from within the confines of the office, workers had the benefit of high speed connections via dedicated T1 lines. As the American workforce has become increasingly remote and mobile, commerce is more and more reliant on high-speed broadband connections to employees' homes, and wireless broadband access for workers on the go.

Broadband speeds of 3 mbps or so are sufficient for connecting and surfing the Web or retrieving e-mail, but are inadequate for using newer technology or evolving business practices to capitalize on what is possible. As Sprint outlines on its site promoting 4G wireless broadband, there are some business scenarios that are impractical with standard broadband, but are made possible by faster broadband speeds:

• Real estate agents can conduct virtual property tours.

• Construction teams using 4G in the field can save valuable time by sharing schematics with engineers online.

• Insurance companies can speed their claims management through real-time communication with on-site adjusters.

• Health care professionals can improve their ability to remotely monitor patients.

• Emergency first responders can rapidly assess and coordinate disaster action with real-time on-site video and audio.

• Photojournalists can instantly transfer high-resolution images to the newsroom.

Now that Connecting America: The National Broadband Plan is public, battle lines are being drawn and the fight is just beginning. Businesses across America should seek to understand the proposals laid out in the plan, and make their collective voices heard.

Whether you think the FCC vision is the right direction for America, or you agree with the private sector interests seeking to maintain the status quo, now is the time to get involved as the details of America's future infrastructure are hammered out.

Tony Bradley is co-author of Unified Communications for Dummies. He tweets as @Tony_BradleyPCW. You can follow him on his Facebook page, or contact him by email at tony_bradley@pcworld.com.

Fast Plextor PX-B940SA 12X Blu-ray Writer

Thu, 03/25/2010 - 3:58pm

Blu-ray burners are advancing at a fast pace: Only a couple of months ago I was marveling at the speed of 8X Blu-ray burners--now here I am again with the 12X Plextor PX-B940SA ($250, price as of March 5, 2010). The write speeds make this Blu-ray drive an especially appealing option.

Even though 12X-rated media isn't available yet, judging from my tests the drive will hit 10X write speeds with 4X-rated media, and 12X speeds with 6X media (Panasonic and Sony currently sell 6X-rated media). The drive maxes out at 12X write speeds, but like most 4X or greater drives, it starts slower and gradually ramps up.

Writing 23GB to a single-layer 4X-rated BD-R disc at 10X with the PX-B940SA took about 11 minutes, 31 seconds (or about 7.4X), and burning 40GB to a dual-layer 2X disc took 22 minutes, 19 seconds (or about 6.6X). With 6X media, write speed improved to 7.8X. By way of comparison, the 8X-rated Pioneer BDR-203 averaged around 6X with 4X-rated BD-R.

Since Blu-ray rewrite technology is still stuck at 2X (9MB per second), backing up to BD-RE is still a somewhat time-consuming process. The unit's other speeds are 16X for writing and reading DVD+R/-R, 8X for DVD+RW, 6X for DVD-RW, 8X for DVD+/-R dual-layer, and 5X for DVD-RAM, as well as 40X with CD-R and 24X with CD-RW.

Plextor bundles CyberLink's BD Suite to take care of burning, movie authoring, video playback, and other tasks. The software is more than capable, but it also bugs you incessantly with registration notices and ads--far more than appropriate for software that the user ostensibly paid for. The program offers no option to bypass the registration, but it does give you a way to disable push advertising; even so, some annoying ads remain in PowerDVD and other modules.

CyberLink and Plextor both tout the PowerDVD 8.0.3223 playback software's TrueTheatre feature for enhancing 480p DVD video to 1080p-like quality. In my trials, it seemed to create a sharper picture than VLC, but the results were not on the level of 1080p; you sacrifice GPU assistance to use the feature, too. PowerProducer 5.0.2.2013 and PowerDirector 7.0.0.3227 are on hand for capturing and manipulating video and images for CD/DVD/AVCHD/Blu-ray movie discs, and LabelPrint 2.5.2130 is available for creating labels and jewel-case inserts. PowerBackup 2.50.5187 is installed to deal with backup chores.

Power2Go 6.1.0.3401 is included for handling some of the more pedestrian data tasks. It also rips audio CDs, converts audio between WMA and .wav, saves nonprotected DVD-movie structures to disc, and creates and burns images (in CyberLink's .p2i format as well as standard .iso).

The Plextor PX-B940SA is a great drive that suffered nary a hiccup in my testing. It's faster than anything you'll currently find on the market.

World's First 3D LED-backlit TV Coming Courtesy Of LG

Thu, 03/25/2010 - 3:57pm

LG announced this Thursday that its upcoming LX9500 will be the worlds first HDTV set to combine a fully-LED-backlit LCD with 3D support.

Word regarding the LX9500 first surfaced last month, when a leaked document revealed LG's roadmap for the coming year. LG opted not to comment on the legitimacy of last month's leak, however the new 3D LED TV has now been confirmed.

The LX9500 will be available in two models, one coming in at 47 inches, and the other a larger model measuring 55 inches. Both of these thin 1080p LED sets come packed with a whole host of features, including USB 2.0, HDMI, integrated Skype software, and of course 3D support.

The sets, which do require you to wear USB-powered glasses, should arrive in Korea within the coming months, beating rival Samsung to market. It'll launch in Europe and the US this May. No pricing details were provided for global markets, but when the LX9500 launches in Korea it is expected to cost around 4.7million South Korean Won, which is roughly $4,000.

[Via Electronista]

Follow GeekTech and Chris Brandrick on Twitter.

iPad Magazine Pricing: Some Answers Emerge

Thu, 03/25/2010 - 3:56pm

Want to know what the iPad version of your favorite magazine will cost? A report in the Wall Street Journal leaked the prices for a few publications, but we may already know more than that.

According to the report, the Wall Street Journal's iPad edition will cost $17.99 per month. An advertisement-free version of Esquire may cost $2.99, which is $2 less than the newsstand price. Men's Health will charge the same $4.99 as it does for the print version, but it will also offer a "preview issue" supported by advertising for Gillette Odor Shield.

Thing is, lots of magazines (including PCWorld) already sell digital versions for PC, Mac and iPhone through a company called Zinio, which distributes but also helps develop digital magazines. Next month, Zinio will bring its magazine library to Apple's iPad, presumably using a Zinio reader app similar to the one that's currently in the iPhone App Store.

It's not clear whether the iPad versions of these magazines will be considerably different from what's already available, but a spokeswoman told me that once you buy a magazine on Zinio's Unity platform, you can read it on any device, even the iPad. The pricing won't change when the iPad arrives, and you can look up all the current prices on Zinio's Web site.

Here's where things get tricky: Zinio's digital version of Esquire costs $4.99, which is more than the price reported by the Wall Street Journal, and Zinio doesn't sell the U.S. edition of Men's Health. It seems like those two publications are working on their own iPad editions, free from Zinio or any other general reader app. If that's the case, the question is how many other publishers will do the same, and how many will take the easy route with a ready-made solution from Zinio.

If publishers chart their own course, then we're really in the dark on pricing. The Journal notes that Esquire hasn't finalized its iPad plans, and no publisher is ready to start offering subscriptions. Zinio's offerings, by comparison, are a lot like print: A single magazine costs around $2 to $5, and a full year is much cheaper, maybe $10 to $20. I hope that's the model iPad magazines go with, no matter who's creating them.

Beta Watch: Springpad, Xpenser, and Citrify

Thu, 03/25/2010 - 3:54pm

If you're looking for a free program to handle your notes from meetings or classes, or a real-time receipt tracker that you can connect to via PC or phone, or a free online photo editor that displays the different adjustments you make as you make them, read on.

Springpad: Note Taker

I've used Evernote for a while to keep records of meetings and plans. But Springpad is a worthy, free competitor that brings some cool new tricks to notetaking. For instance, you can import a recipe from a cooking site, and Springpad will automatically parse out the ingredients you need. Click a link, and it will add those ingredients to a shopping list. Type in the name of a movie, and not only will the service add a note with a description and image, but it will give you local showtimes or add it to your Netflix queue. A companion iPhone app lets you add and access notes on the go. You can even add a product by scanning its barcode with your iPhone's camera.

Xpenser: Receipt Help

Even if your business trip goes off without a hitch, you'll have to deal with all those receipts afterward. And who can remember a week afterward what the taxi ride cost or why the bottle of single-malt scotch seemed deductible? With Xpenser, you can keep track of your expenses in real time, using any PC or phone. You can add an expense through the free service's site, by e-mail, IM, text message, or voice call. You can even keep track of your costs by sending direct messages on Twitter. Send in a photo of the receipt to prove that a cheeseburger really can cost $20.

Citrify: Snappy Photo Editing

Online photo editors have existed for years, but early versions were often slow to show the changes you made to your images. Citrify displays the effects of your work as you do it, enabling you to see just how your picture will look as you pump up the contrast or sharpness. This free service includes most of the tools amateur photographers will need-in addition to adjusting brightness and hue, you can eliminate red-eye, smooth over wrinkles, and more. You can even "Obamify" your images, making the subjects look as though they're in the iconic campaign poster.

Rent-a-CIO

Thu, 03/25/2010 - 3:44pm

A number of people have decided, or been compelled, to move from the security of a CIO position to the less secure, but more flexible life of a freelance consultant or part-time CIO-for-hire.

Peter Jameson was CIO at Redeal, the back-office support organisation for electronics distributor Rexel, until May last year, when the role was disestablished. "I had been thinking about a move of this kind before the economic climate forced it on me," he says, "and I knew the reorganisation was coming." So he was to some extent forewarned. He saw the change as offering a more flexible lifestyle, with better work-life balance.

Networking skills

The life of a CIO, with its management of several concurrent projects, can be frustrating, though it is also stimulating and rewarding, he says. "I also looked for the mental stimulation of working for different organisations and doing different types of work."

A successful consultant has to sell him/herself on the open market, "you have to become a different kind of person, a self-marketer who gives a lot of time to networking -- a communicator," says Jameson.

Attention should be paid to marketing materials; such as a set of documents that will quickly give a potential client an idea of the consultant's strengths. "You need to have something you can show clients." Preparation of such materials is, naturally, unpaid work, part of the "cost of sale".

However, a CIO is hardly a stranger to communication, networking and selling one's ideas and usefulness; it's just selling to a different audience, Jameson says. "The key positive skill-set I bring from my CIO experience is to look at the problems of the business, rather than technology." Some who have built a career in the consultancy market might be comparatively technical in their approach and this gives him a possible advantage in bidding for work.

Contracting and CIO work may, of course, overlap. With New Zealand's large proportion of small organisations, unable to justify the budget for a full-timer to look after ICT, there is an opportunity in the market for a part-time CIO. A person who can work with a business long enough to translate their ideas into a fully defined ICT project and oversee its implementation, says Jameson.

Asked what "fields" he is involved in now, he jokes, "mostly green ones". He is spending a lot of time on his small farming property, as fulfilment of that more flexible lifestyle he was seeking. In the ICT-related field, he is currently involved in a project to help companies implement the requirements of the Financial Advisors Act, passed in 2008 to improve disclosure and assurance of integrity in the financial advice industry. "That's less a technical job and more about business process," he says.

Before starting business as a consultant, it makes sense to talk to those already in the field about their experiences and their ways of working, Jameson says. There are elements of both co-operation and competition in the consultancy community, he says. "People are quite free with advice, but I do find that in recent economic conditions, they hold their key contacts close."

The relationship dynamics of working with the ICT team in a client company will be different from those of a full-time CIO post. "I don't think your commitment changes," he says. "I have to have a belief that I'm delivering the best I can for an organisation, even though there is a visible limit to my time there."

There will, inevitably, be periods without work, Jameson says and these should be seen as opportunities to gain knowledge. "Whether you're finding work or not, you must be continuously exposing yourself to new learning."

The freelancer

Neil Andrew has worked for both corporate users and ICT vendors. His most recent full-time post was more than two years ago as head of resources and technology for TVNZ. He was responsible for cameras and other equipment that was a daily part of producing and transmitting television as well as the ICT systems. As part of a TVNZ reorganisation, the role was to be split into two and at nearly 60 years of age, he decided a complete change might be no more difficult.

He describes himself as a "freelancer", a term, he notes, with an honourable tradition in the media business. He has worked in that style before, between fulltime jobs, so it was not an unfamiliar world. "While I do consult, I don't take on any permanent roles [and] I believe this is the way more and more people will work in the future."

He does not perceive a problem of "not belonging" in a client organisation. "If I have been appointed, I have sponsorship from the CIO or the business owner. Teams recognise I have that support and they don't mess me around."

To some extent, he says, permanent staff see a consultant's retention as a valuable chance for information exchange. "We have him for this long, they'll say 'let's take the chance to pick his brains'."

The skills-set for freelance and permanent CIO roles in Andrew's view does not differ significantly. "You're still giving people a lot of advice and working strategically with the business." A freelancer's job is inevitably more task-focused as, "there is a lot more clarity about what you're there to achieve and about the value you're providing".

During uncertain economic times, "there's no doubt about it, a permanent role is a lot more comfortable," he concedes. The problem has been not so much the recession itself, as the accompanying sense of uncertainty and drive to cost-containment that means projects get put on hold. The situation is changing for the better now, he says, "as people realise the sky isn't going to fall in".

The most important need for the freelance life is to cultivate one's networks, he says and, in New Zealand's small business community especially, "not to crap in your own nest. Don't bad-mouth people or take them down. You're going to need their goodwill."

Andrew finds the freelance consulting community "very co-operative. A lot of the people in my network are fellow freelancers. I'll put teams together for projects from people I trust."

The virtual CIO

Murray Wills, director of consultancy Maxsys, spends a good proportion of his working life acting as a "virtual CIO" -- for organisations that either cannot justify a full-time CIO or IT manager, or who face a temporary lack of such a person through vacation or delay to a reappointment after the IT chief has left.

A virtual CIO can also be requested to supply for a time high-level skills for a major development or strategic evaluation of IT opportunities, where the regular IT manager is adequate to the day-to-day operational aspects of the business, but lacking in skills for those longer term aims.

The brief must be tightly defined and understood, says Wills. A contract that expects the contractor to make a difference to the ICT system is very different from a holiday stop-gap role, where it would be unfair to the permanent incumbent to make material changes.

A virtual CIO needs to come to grips quickly with both the technical infrastructure and the nature of the business and its corporate objectives, says Wills. He has the business experience to supply this need, he says, with a past career in consultancy and sales having given him the necessary expertise in building and maintaining relationships.

"I've also had an IT governance background", he says. Lack of governance in Wills' view is a major shortcoming of ICT in local companies. It has to be fully integrated with the governance of the business as a whole. "I've been known to get quite vocal about the lack of IT governance skills on boards of directors and among CEOs," he says. Not only does this risk an ICT capability unsatisfactorily integrated with business needs, it often manifests in a poor choice of CIO or IT manager "because the CEO lacks understanding of the CIO position and the talents that such a person should have.

"Given the amount of money that is spent on ICT," he says, "I think there should be more expertise at the top level."

Assignments can last anything from six weeks to eight to nine months. "If I am acting CIO, I will work for that one client, but as a virtual CIO, I will typically have a number of clients concurrently."

Wills has worked with a wide variety of organisations in government and the private sector. He has acted as CIO or IT manager for organisations such The Ministry of Transport, Ministry for Culture and Heritage, Alcohol Advisory Council, and the State Services Commission. In government especially, there is value in taking the experience gained in one agency and transferring it to another that faces similar challenges, he says.

Although a virtual CIO must become involved to a large extent in the business and interpersonal communication of a client organisation, he or she can stay clear of the deeper aspects of office politics. This can mean an ability to make necessary decisions that a full-time CIO or IT manager might have trouble pushing through.

As for the perceived problem of "not belonging", as long as your expertise is evident and your mandate is clearly defined there should be no problem, Wills says. As a capsule demonstration of his knowledge and competence, he can now point to his formal IT Certified Professional qualification, a mark of assured professionalism recently instituted by the NZ Computer Society.

It also helps that Maxsys stays scrupulously neutral in its relationships with vendors. "We don't sell hardware or software," he notes.

Wills expects to see the virtual CIO idea grow as small companies in particular face more ICT challenges and the value of the concept becomes evident.

Republicans question parts of FCC's broadband plan

Thu, 03/25/2010 - 3:41pm

Republican members of a U.S. House of Representatives committee objected Thursday to parts of the U.S. Federal Communications Commission's new national broadband plan, saying it leaves broadband carriers open to new regulation.

Republicans, and one senior Democrat, on the House Energy and Commerce Committee complained that the plan doesn't shut the door on the FCC reclassifying broadband as a common carrier, much like highly regulated telephone service.

While Chapter 4 of the broadband plan doesn't talk specifically about reclassifying broadband as a common-carrier service, committee Republicans said the chapter addressing broadband competition policy recommends a number of new rules that could potentially create new regulations for broadband providers.

"The worst idea I've heard in years is reclassification," Representative Joe Barton, a Texas Republican, said during a subcommittee hearing. "I don't want to regulate broadband like we regulated telephone service in the 1930s."

FCC Chairman Julius Genachowski told subcommittee members he's not planning to reclassify broadband as a common-carrier service, but the FCC will look at some "discrete" areas where it sees problems with competition, including the wholesale broadband market and the so-called special access rates paid to large telecom carriers for large-pipe connections between buildings and central switching facilities.

Genachowski said he understood fears about new regulations. "The goals of the commission very clear are to develop policies that promote investment, promote innovation, promote competition, and protect and empower consumers," he said.

Some Republicans and other observers have raised concerns about the FCC requiring broadband providers to share their fiber networks with competitors, as they were required to do with their copper networks in the late '90s and early '00s, since Cbeyond, a broadband and VoIP (voice over Internet Protocol) provider, filed a petition in January for the FCC to return to network-sharing rules.

But the broadband plan says only that the petition "deserves attention."

Among the broadband plan's goals: Universal broadband availability and 100 million U.S. homes with 100M bps (bits per second) service by 2020.

Several Republican committee members praised parts of the broadband plan, but Barton, the committee's senior Republican, questioned whether a huge national broadband program was needed, when wired broadband is available to more than 90 percent of U.S. homes.

"Ninety-five percent of America has broadband, and the federal government hasn't had to spend a dime," he said. "This isn't a have/have not program, this is a find-something-for-the-FCC-to-do-that-makes-sense-in-the-21st-century program."

Representative Mike Rogers, a Michigan Republican, questioned how Genachowski could talk about encouraging private investment in broadband and also propose new net neutrality rules that would prohibit broadband providers from selectively blocking or slowing Internet content. The broadband plan has sent a "shiver of cold" across the investment community, he said.

While Democrats generally praised the plan, Representative John Dingell, a Michigan Democrat, questioned whether the plan would open up "old policy fights" by leaving open the possibility that broadband providers share their networks. Dingell also said he was concerned about the broadband plan's proposal to take up to 120MHz of wireless spectrum from television broadcasters in exchange for a portion of the auction revenues.

TV stations gave up nearly a third of their spectrum in the transition to all-digital broadcasts that happened in June, Dingell said. "The further loss of [broadcasting] spectrum can have a very serious adverse effect on the public by limiting consumer choice," he said.

But other Democrats called the broadband plan "superb" and necessary for the U.S. to compete with other nations.

"The national broadband plan is the most significant and ambitious infrastructure program for America since the interstate highway system," said Representative Henry Waxman, a California Democrat and committee chairman. "Our competitiveness and prosperity depend on meeting its core objectives."

GSMA launches SMS spam reporting service

Thu, 03/25/2010 - 3:33pm

The falling cost of text messaging is making mobile-phone users a more attractive target for spammers, according to the GSM Association. To counter this, it wants its mobile-network-operator members to "crowd-source" spam reports from their customers to help them identify and cut off spammers abusing SMS (Short Message Service).

As much as 90 percent of Internet e-mail traffic is spam, according to some reports, up from just 20 percent a decade ago. The proportion of spam in mobile text messages is far lower, under 10 percent in the U.S. and the U.K., rising to 20 percent in some Asian countries, according to Brad Greene, vice president of business development at the GSMA.

One thing that has slowed the spread of SMS spam is the cost of text messaging compared to e-mail: Internet spam is profitable even at very low response rates because millions of e-mail messages can be sent for just a few dollars. Now, though, low-cost or unlimited texting plans, and the rising use of high-speed wireless modems, have changed the economics of SMS spam, Greene said in an e-mail response to questions. The GSMA is taking action now to make sure that the Internet spam situation "is not replicated in the mobile world," he said.

In France, operators have been encouraging subscribers to report SMS spam since October 2008. Phone users there can forward offending messages to the Stop-Spam service via the short code 33700. An initial response prompts them to reply with the spammer's phone number, with a final SMS acknowledging the completed spam report. The service has received almost half a million spam reports in this way. This has resulted in the disconnection of only 300 phone numbers for spamming, although many more have received cease-and-desist orders.

The operators can't just block offending SMS messages or shuffle them into a spam folder as many e-mail service providers do. For one thing, the senders have paid for the messages, so the operators are contractually obliged to deliver them unless they can prove that the sender has breached their terms of service, according to a spokeswoman for the Fédération Française des Télécoms. Also, creating an SMS spam folder would mean updating the firmware on millions of phones.

The SMS spam reporting systems in place so far, in France and South Korea, for example, stop at national boundaries, but spam is a global problem requiring a global response, according to the GSMA. In a GSMA study last year, "68 percent of the global mobile network operators surveyed reported receipt of mobile spam originating from senders outside their networks," Greene said.

The GSMA is promoting a system developed by e-mail spam-filtering specialist Cloudmark, which will allow mobile-network operators around the world to pool spam reports from their customers, enabling analysis of the data to determine the sources of attacks and their volumes, said Greene. Armed with that information, they will be able to "curb abuse, pursue enforcement of acceptable use policies and support law enforcement," he said.

AT&T Mobility, Korea Telecom and French operator SFR will be the first operators to contribute data to the new system, the GSMA said. Unlike Cloudmark's e-mail service, the GSMA SMS reporting service won't automatically block offending text messages, but it will give participating mobile operators useful data for their own operational processes and automated systems, Greene said.

Cisco buys into WiMax for Smart Grid, acquires stake in Grid Net

Thu, 03/25/2010 - 3:31pm

Cisco Systems has been scouting for major plays in the Smart Grid infrastructure arena for about a year — some analysts even speculated that it would buy wireless networking provider Silver Spring Networks. But today, it announced its decision to go with Grid Net, one of the first and only companies to trumpet WiMAX as the ultimate solution for transmitting data between utilities and smart meters.

Most utilities and meter makers rely on cellular networks or proprietary broadband networks to get the job done, arguing that WiMAX is still too expensive for broad deployment. But Grid Net says price won’t be an issue for long. Not only does WiMAX offer higher speeds and more bandwidth, but it will be extremely cheap in the future because it’s an open standard, says Grid Net CEO Ray Bell.

So far, it’s unclear exactly what Cisco wants with the company’s WiMAX expertise. It’s made a lot of noise about being a major force in the Smart Grid market, appointing Laura Ipsen to head up a dedicated program, and announcing that it would dedicate unlimited budget to the cause.

But so far, the company has little to show for it. At VentureBeat’s GreenBeat conference in November, Ipsen said Cisco would be rolling out its first Smart Grid networking products in the first half of 2010, but this remains to be seen.

The deal makes sense, considering that Bell formerly worked on networking solutions at Cisco. One can assume that he giant will be integrating WiMAX into its own Smart Grid products when they do hit the market. Even being involved in WiMAX development puts Cisco on the cutting edge of the Smart Grid industry.

I reported yesterday on the scuffle between companies promoting public network communications (SmartSynch) and those endorsing private networks (Trilliant, Silver Spring). If WiMAX comes along as fast as Grid Net says it will, it could immediately trump both of those options.

Some Smart Grid players have dismissed WiMAX out of hand, but it looks like that’s the direction the whole industry might move. In addition to Cisco buying into WiMAX, General Electric also announced today that it’s launching its own Smart Grid pilot project that will test WiMAX in tandem with Consumers Energy, a utility based in Michigan.

This is also the second big recent win for Grid Net, which just snagged Austin Energy Chief Information Officer Andres Carvallo to sell the idea of WiMAX to utilities. Carvallo is credited with spearheading the country’s first Smart Grid deployment in Texas.

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Gonzalez sentenced for multimillion-dollar credit card scam

Thu, 03/25/2010 - 3:24pm

As his parents and sister silently wept, hacker mastermind Albert Gonzalez was sentenced Thursday in U.S. District Court to two concurrent 20-year stints in prison for his role in what prosecutors called the "unparalleled" theft of millions of credit and debit card numbers from major U.S. retailers.

U.S. District Court Judge Patti B. Saris announced the concurrent sentences in two 2008 cases against Gonzalez, 28, a Cuban-American born in Miami, where he lived when the crimes were committed. According to binding terms of a plea agreement Gonzalez forged with the U.S. Department of Justice, he could have received between 15 years and 25 years for the crimes.

"I stand before you humbled by these past 24 months," Gonzalez said in court, slightly expanding the time he has been incarcerated since his arrest in May 2008. "I'm guilty not only of exploiting complicated networks, but also of exploiting personal relationships," he said. He added that he had exploited a relationship with a "government agency," a reference to a previous deal he had related to a separate criminal case in which he agreed to be an informant for the U.S. Secret Service, but provided information from that agency to one of his co-conspirators in the credit-card theft cases.

"I've impacted the lives of millions of individuals and I violated the sanctity of my parents' home," said Gonzalez, who was wearing khaki-colored jail garb and a stylish, closely shorn haircut -- quite different from the long locks he sported when he was arrested. Gonzalez stashed more than a million dollars in a hole in the backyard of his parents' Miami home, although he drew a map for investigators to find the hidden loot and forfeited it and other ill-gotten material goods after he was arrested. He urged Judge Saris to sentence him on the low end of the agreed-to spectrum, saying he hopes to some day prove to his parents that he loves them as much as they love him and that he wants upon his release to turn his life around.

Gonzalez and co-conspirators hacked into computer systems and stole credit card information from TJX, Office Max, DSW and Dave and Buster's, among other online retail outlets, in one of the largest -- if not the largest -- cybercrime operations targeting that sort of data thus far. They used some of the stolen numbers to remove cash from ATM machines and sold many of the other numbers to other criminals, including those in Eastern Europe. Gonzalez pleaded guilty to conspiracy charges in two cases related to those thefts last December and the following day entered a guilty plea in a third case involving hacking into computer networks of Heartland Payment Systems and the Hannaford Supermarkets and 7-Eleven chains, also to steal credit and debit card numbers. The Heartland hacking was particularly damaging because the company processes transactions for major credit and debit card companies Visa and American Express.

He is scheduled to be sentenced in the third case Friday in U.S. District Court for the District of Massachusetts. Gonzalez was indicted in New York, New Jersey and Massachusetts, with the cases eventually moved to the same federal court.

After reviewing the cases following established sentencing guidelines that take into account various factors, including the effects of the crimes, the DOJ sought the maximum agreed to under the plea deal in two cases and 20 years in the other. Without that agreement in place, sentencing guidelines that consider previous crimes and the severity of these crimes would call for a maximum of life in prison. However, Judge Saris said that with respect to the two cases in her court, she believes the 20-year sentences are "sufficient" to suit the crimes and also will send a message to would-be cybercriminals, who tend to be young adults, that they could spend much of their youth in prison if they are caught.

Saris was apparently moved by letters written by Gonzalez's loved ones, who described him as "interactive and loved and loving -- there is another side to your personality," she said of those accounts. "And yet when you read the [case] transcripts there's this macho glee" about the crimes he was committing, she added. Furthermore, he "two-times" the Secret Service, "almost like a double agent," she said.

Defense attorney Martin Weinberg argued in court documents and again in court Thursday that Gonzalez should be sentenced to 15 years. While the government referred to the cases as "identity theft," they were instead thefts of data that did not involve stealing victims' identities to "invade their bank accounts, withdraw money, and ruin their credit," according to a court filing, which Weinberg reiterated Thursday.

Furthermore, Gonzalez "did not hack into government computer systems, he did not crash computer systems by spreading viruses or inundating them with spam, and he did not invade the privacy of individuals' computers to steal such data as passwords to compromise their financial life and invade their personal property," Weinberg wrote in the court document.

The defense had further argued that Gonzalez was a substance-abusing Internet addict with Asperger's syndrome -- a form of autism -- at the time of his crimes, so he should merit fewer years in prison. Also, one of the three unrelated cases cited by the DOJ in making its argument for longer sentences -- because there should be parity in sentencing similar crimes -- was much worse than what Gonzalez did, Weinberg said in the filing. He added to that in court that some of the most egregious white-collar criminals in recent memory, who stole peoples' pensions and literally ruined lives, have not received sentences as long as 25 years.

At issue Thursday was the thorny subject of determining how many victims there were of Gonzalez's computer thievery. The judge interrupted arguments by the attorneys to ask if there is any way to know financial figures or anything about "individuals" who were harmed. While the companies and financial institutions that were affected are known, putting actual human faces and dollar amounts on the crimes is not something that may ever be possible, it was agreed.

Indeed, the issue of restitution was set aside for a separate hearing on June 25, to give the DOJ and others involved in the case time to come up with a total figure. Judge Saris said that she is likely to have to determine an amount of restitution and then leave the rest of the damages companies hope to recover to lawsuits. Heartland has already agreed to multimillion-dollar settlements with Visa and American Express for damages in the hacking thefts.

Gonzalez forfeited more than $1 million that can be used as restitution, however, "you're never possibly going to be paying all that I'm ordering," said Saris, who levied a $25,000 fine Thursday and deferred remaining issues of restitution until the June hearing. But the fact that he turned over the stashed money and that he seems remorseful were among the reasons she imposed sentences in the middle of the range, she said, adding that there were other factors she took into account that she could not disclose in the public sentencing hearing because that information is under court seal.

Judge Saris would like to see Gonzalez someday be released from prison and find work so that he can pay back some of what he stole from victims, she said. Along those lines, after he is released, he will be supervised by the court for three years, during which time he will not be allowed to use the Internet. His use of electronics will be monitored and he will have to undergo drug and alcohol testing. While the DOJ had suggested a prohibition on the use of all electronics, Judge Saris was skeptical of how that could be applied, particularly almost two decades from now. (Gonzalez will get credit for time served.) "By the time he gets out in 20 years, there may not be landlines," she said, recommending that mobile phones be excluded from the prohibition.

On the other hand, she also has seen hackers she's sentenced show back up in court after they've been released. "I do think there is a chance of recidivism here," she said, noting that such criminals often find the lure irresistible.

In fact, when he addressed the court, Gonzalez said that he was not motivated by greed or other foul intent, but by simple "curiosity" and "my addiction."

Federal prosecutors, however, painted a much different portrait of him. "Albert Gonzalez was motivated by ego, challenge and greed and was proud of the national attention his computer intrusions and data thefts drew," the DOJ said in its sentencing filing. "They drew that attention because they victimized more people than anyone had ever done before in this country, caused hundreds of millions of dollars in losses, and shook the public's trust in the security of credit and debit card transactions at some of the country's largest institutions.

"Gonzalez already has been given a second chance. He used that second chance not to straighten out his life, but to provide cover as [he has] committed ever more brash and destructive crimes."

Public safety fee on wireless users a challenge for industry

Thu, 03/25/2010 - 3:22pm

The FCC's proposed monthly public safety fee of up to $1 on every broadband user in the U.S. poses a political challenge for the private wireless industry.

On one hand, the industry would like to see the FCC auction off radio spectrum in what is called the D block for private uses; the spectrum could then be shared with emergency groups, as the FCC has proposed in the National Broadband Plan.

On the other hand, the wireless industry hates the idea of adding more user fees, with one industry-backed group, mywireless.org , noting that the average wireless consumer already pays 16% in taxes and fees -- and the average wireless household pays $350 a year in wireless taxes.

In a separate document not on the site, the group put the total of taxes and fees on the average wireless consumer at nearly $600 a year.

The public safety fee, which would be used to support a $16 billion emergency wireless network, was proposed by the FCC in its National Broadband Plan. In that plan, it is described only as a "nominal" fee, although a spokesman recently said it would probably be less than $1 a month. Other officials this week pegged the fee at closer to 50 cents, although the matter is still under discussion and Congress must grant the FCC permission to impose the fee.

The main wireless industry association in the U.S., the CTIA, runs mywireless.org arm, which has organized a lobbying effort to oppose a bevy of state and local taxes and fees on wireless service. So far, the CTIA hasn't taken a public position on the public safety fee, and a spokeswoman said the group is determining whether policymakers want it to replace a fee used to support emergency 911 services.

Asked whether that might happen, an FCC spokesman said today that "details are still being worked out." However, an official familiar with the discussions said the proposed new fee is likely to be separate from the E911 fee, meaning that both would be paid by consumers.

While mywireless.org has collected state-by-state details on wireless taxes and fees, some of the information online appears to be one or two years old when compared with printed information from the group handed out at the CTIA conference.

At its CTIA booth, mywireless.org handed out a chart showing taxes and fees for each state as of June 2009 that concluded that the average consumer pays nearly $50 a month in combined fees and taxes. Washington state is at the top of the list with a combined rate of 23.33%. That figure includes an 18.54% state and local wireless tax rate, plus a 4.79% rate used for the Universal Service Fund (USF), which helps cover the cost of bringing phone service to rural areas. Oregon has the lowest combined rate, 6.48%, with just 1.69% for state and local taxes on top of its 4.79% for the USF, according to the mywireless.org chart.

Raising the USF to help expand broadband access in the U.S. has come under fire by both Republicans appointed to the five-member FCC. But it isn't clear how they, or Republicans in Congress, feel about a fee to fund a public safety network that has wide backing.

Several visitors to the CTIA show who passed by the mywireless.org booth said they understand the dilemma that puts the industry and some policymakers between a rock and a hard place. "You want an interoperable network for emergencies, but yet another fee to pay for it? I don't know," one man said.

Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld . Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed . His e-mail address is mhamblen@computerworld.com .

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