Thursday, September 26, 2013

EBay to acquire payments startup Braintree for $800 million cash

PayPal's parent company, eBay, plans to acquire payments startup Braintree for approximately US$800 million in cash to enhance PayPal's mobile capabilities.

Braintree offers a platform designed to make it easier for companies to accept payments in apps or on websites. Experienced developers should be able to integrate the platform in less than half an hour, allowing companies to start accepting payments quickly, according to the company.

EBay said that it hopes that PayPal and Braintree will be able to better support developers together. Once the acquisition is completed, Braintree will continue to operate as a separate service within PayPal, it said.

The Braintree service is used by companies like Web-based accommodation service AirBNB and taxi-hailing service Uber. It is used by merchants in more than 40 countries across North America, Europe and Australia. The merchants can accept payments in more than 130 currencies.

"By joining with PayPal, we'll be able to expand more quickly around the world. We'll have more tools to offer to our customers through our developer platform. The universe of consumers that we can reach with our services that make it easy for people to pay on a mobile device will expand significantly," Braintree's CEO William Ready said in a blog post.

Braintree's mobile application Venmo is part of the acquisition and will help to contribute to PayPal's mobile payments capabilities, eBay said in the release. PayPal's mobile payment volume is projected to be more than $20 billion this year, it added.

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close late in the fourth quarter of 2013.

Loek is Amsterdam Correspondent and covers online privacy, intellectual property, open-source and online payment issues for the IDG News Service. Follow him on Twitter at @loekessers or email tips and comments to loek_essers@idg.com

Suitcase-size device may help save lifes of disaster victims

The device looks like a small piece of carry-on luggage, but it has a more important job than carrying a toothbrush, deodorant and a couple of pairs of underwear.

The suitcase-size device is a microwave transmitter designed by two U.S. government agencies to help rescue workers find living victims buried in rubble after disasters such as earthquakes, floods or bombings.

The groundbreaking technology, called FINDER or Finding Individuals for Disaster and Emergency Response, uses microwave signals to identify the breathing patterns and heart beats of disaster victims buried in rubble, has the potential to be one of the "biggest advances in urban search and rescue in the last 30 years," said John Price, program manager of the First Responders Group at the U.S. Department of Homeland Security's Science and Technology Directorate.

The suitcase device sends a low-power microwave signal into rubble to look for heart beats and breathing patterns, and rescue workers see readouts on a tablet-size Panasonic Toughbook controller. The reflections of the microwave signal can show tiny movements in rubble piles, said Jim Lux, FINDER tax manager at the Communications Tracking and Radar Division at NASA's Jet Propulsion Laboratory.

The technology is based on NASA tools to measure movements of objects in space and ocean levels, Lux said.

FINDER can find living victims buried under 30 feet of crushed materials or behind 20 feet of solid concrete, and the device can distinguish between humans and animals, based on heart rates and breathing patterns, officials said.

DHS and NSA have been developing FINDER for more than a year, and this week, they tested a prototype at an urban search and rescue training site in Lorton, Virginia, near Washington, D.C. Rescue workers from search-and-rescue team Virginia Task Force 1 and the Fairfax County, Virginia, Fire and Rescue Department were able to find a woman hidden in a pile of concrete rubble within minutes.

Finding disaster victims quickly "greatly increases their chances of survival," Price said.

In previous tests of prototypes at the Lorton training center, rescue workers gave NASA and DHS some "painful" but necessary feedback, Lux said.

NASA and DHS plan to make FINDER available to search and rescue teams worldwide when it's fully tested, Lux said. The agencies are already getting suggestions from the public on other ways that the technology can be used, with a 9-year-old from India emailing Lux some suggestions recently, he said.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's email address is grant_gross@idg.com.

Enterprises more accepting of Android, while Windows is losing ground

Enterprises are increasingly interested in developing apps for Android-based smartphones and tablets, showing how Google's OS is becoming more accepted, according to a poll. At the same time fewer are willing to spend resources on Microsoft's OSes.

For the second time, cross-platform tool company Appcelerator has queried IT directors, CEOs, development directors, CTOs and people in a number of other roles what their priorities are in the mobile market. The results hint at how the enterprise arena is slipping away from Microsoft, while at the same time acceptance for Android is growing and iOS is the number one priority.

As part of the survey, Appcelerator asked the 804 participants how interested they were in developing consumer and enterprise apps for the various mobile platforms. Apple was on top, with 80 percent saying they were very interested in developing applications for the company's smartphones and tablets, which is roughly the same response elicited by the first quarter version of the survey.

The third-highest priority was Android-based smartphones, which 71 percent of the respondents said they were very interested in, an increase of 7 percentage points from the first quarter. But unlike Apple, Google and its hardware partners have so far failed to convince enterprises that Android-based tablets are as important as smartphones based on the OS. Fifty-nine percent stated they were very interested, though that was an increase compared to 52 percent during the first quarter survey.

"Android interest is increasing ... there are probably a few reasons for that. One could certainly be because of Android's strong overall market share and with BYOD enterprises have to build apps for multiple platforms," said Nolan Wright, co-founder and CTO at Appcelerator.

After that there is a big gap down to Windows-based smartphones and tablets, at 26 percent and 25 percent, respectively, compared to 29 percent and 30 percent in the first quarter study. To add insult to injury more than 60 percent thought that Windows 8 would ultimately fail as a mobile platform.

"That is probably a reflection of market demand. I think Windows hasn't done too well in the market, and the interest for developing apps is following that. It will be interesting to see what happens with Nokia," Wright said.

Earlier this month Microsoft announced it would buy Nokia's Devices & Services business in an effort to beef up its mobility push. Wright thinks the deal could help change Windows' fortunes.

"From what we hear there is a genuine interest in the enterprise for Microsoft to have viable products. So it certainly still has an opportunity," Wright said.

But Microsoft isn't the only vendor struggling to drum up developer interest for its platform. Only 12 percent said they were very interested in developing apps for BlackBerry phones, which is two percentage points better than in the first quarter study but still a much smaller share than competing OSes.

On Friday, BlackBerry said it would as part of its efforts to stay alive refocus on enterprises. To succeed the company will have to convince them to use its devices, and an important part of that is making sure apps are available.

For enterprises that want to build applications for multiple platforms at the same time, HTML5 is an option. Sixty percent of the respondents said they were very interested in developing mobile, HTML-based Web apps, making them a higher priority than native applications for BlackBerry and Windows devices as well as Android-based tablets.

Send news tips and comments to mikael_ricknas@idg.com

Apple should be forced to conform to a standard charger, say EU politicians

Apple may be forced to abandon its proprietary 30-pin dock charger if European politicians get their way.

Members of the European Parliament's internal market committee on Thursday voted unanimously for a new law mandating a universal mobile phone charger. The MEPs want all radio equipment devices and their accessories, such as chargers, to be interoperable to cut down on electronic waste.

German MEP Barbara Weiler said she wanted to see an end to "cable chaos".

This is not the first attempt to set a standard for universal phone chargers. In 2009 the European Commission, the International Telecommunications Union (ITU) and leading mobile phone manufacturers drew up a voluntary agreement based on the micro USB connector.

However Apple, which sold nine million units of the iPhone 5s and 5c in just three days last week, has not adhered to the agreement despite signing up.

The draft law also lays down rules for other radio equipment, such as car door openers or modems, to ensure that they do not interfere with each other. The committee also cut some red tape, by deleting a rule that would have required manufacturers to register certain categories of devices before placing them on the market.

The committee is now expected to begin informal negotiations with the European Council in order to move the legislative process along quickly.

Follow Jennifer on Twitter at @BrusselsGeek or email tips and comments to jennifer_baker@idg.com.

Broadcom chipsets enable multiple, high-resolution in-car displays

Broadcom's latest line of wireless chipsets for cars can keep the kids quiet in the back seat, while allowing mom and dad to make calls in the front.

The new chipset family uses the fast 802.11ac Wi-Fi wireless standard for in-car connectivity, which provides the bandwidth required for multiple in-car displays and screen resolution of up to 1080p. Using the 5GHz band for video allows it to coexist with Bluetooth hands-free calls on 2.4GHz, according Broadcom.

There is also support for Wi-Fi Direct, Miracast and Passpoint. Wi-Fi Direct lets products such as smartphones, cameras and gaming devices connect to one another without joining a traditional home, office or hotspot network, while Miracast lets users stream videos and share photos among smartphones, tablets and displays.

Passpoint is a relatively new program from the Wi-Fi Alliance that aims to make it easier for users to securely connect to hotspots. Users should no longer have to search for and choose a network, request the connection to the access point (AP) each time and then in many cases re-enter their password. All that is handled by a Passpoint-compatible client.

The chipsets are also compatible with Bluetooth Smart, which can be used by devices to help obtain a specific piece of information, such as whether all the windows in a house are closed or what someone's blood glucose level is. Devices using the technology include heart-rate monitors, blood-glucose meters, smart watches, window and door security sensors, key fobs for cars, and blood-pressure cuffs, the Bluetooth Special Interest Group said on its website.

In a car, Bluetooth Smart can help monitor driver fatigue and blood alcohol content, according to Broadcom.

The BCM89335 Wi-Fi and Bluetooth Smart Ready combo chip and the BCM89071 Bluetooth and Bluetooth Smart Ready chip are now shipping in small volumes. Broadcom didn't say when cars equipped with either chip would become available.

Send news tips and comments to mikael_ricknas@idg.com

Chinese 'Icefog' gang attacks Asian countries using 'hit and run' APTs

Kaspersky Lab has identified another Chinese APT campaign. Dubbed ‘Icefog’, the largely Japanese, Taiwanese and South Korean targets included a well-publicised attack on Japan’s House of Representatives in 2011.

Kaspersky Lab and others have released a steady stream of research on what is starting to look like a thriving mostly Chinese industry selling hacking expertise and espionage to governments.

In recent weeks, Symantec published a paper on a major hacking-for-hire group it called ‘Hidden Lynx’ responsible for a large number of attacks while Kaspersky itself has uncovered evidence that North Korea was trying its hand at the same chicanery with its ‘Kimsuky’ Trojan.

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Judging from Kaspersky’s latest research, Icefog looks like a smaller player than Hidden Lynx or the notorious Comment Crew/APT1 convincingly blamed for a hugely successful raid on defence contractor QinetiQ.

At first Icefog doesn’t look particularly innovative, pivoting on the same collection of tried and trusted spear-phishing and software exploit via email attacks techniques as every other APT campaign yet discovered.  The aim is to gather address books, user credentials, and documents, including those created by Office and the South Korean Hangul word processor.

One interesting variation is a ‘Macfog’ beta variant targeting 64-bit OS X users. Seeded through Chinese bulletin boards to several hundred victims and masquerading as a graphics application, Kaspersky speculates that this might be a test run for a more featured version designed to attack the platform in a future version.

The campaign’s defining characteristic is probably its command and control network, which uses a ‘hit and run’ model to set up an attack before disappearing in a month or two. This is an unusual tactic. Commercial criminals invest a lot of time and effort trying to protect their C&C; Icefog deliberately builds and dismantles it once the attack is over, a technique of obscuring its activities from security researchers.

This also makes it very hard to estimate the extent of Icefog’s activity, Kaspersky said. Dating back to 2011 at least, it had a slower year in 2012 before an uptick in 2013, but this could just be another consequence of its temporary C&C design.

“For the past few years, we’ve seen a number of APTs hitting pretty much all kinds of victims and sectors. In most cases, attackers maintain a foothold in corporate and governmental networks for years, exfiltrating terabytes of sensitive information”, said Kaspersky Lab’s director of global research, Costin Raiu.

“The 'hit and run' nature of the Icefog attacks demonstrate a new emerging trend: smaller hit-and-run gangs that are going after information with surgical precision. The attack usually lasts for a few days or weeks and after obtaining what they were looking for, the attackers clean up and leave,” he said.

“In the future, we predict the number of small, focused ‘APT-to-hire’ groups to grow, specialising in hit-and-run operations; sort of ‘cyber mercenaries’ of the modern world.”

Sectors targeted included the military, shipbuilding, maritime, computing, research, telcos, satellite firms and the media.  A range of Japanese and South Korean firms had been on the list including Lig Nex1, Selectron Industrial Company, Hanjin Heavy Industries, Korea Telecom, Fuji TV, and the the Japan-China Economic Association.

After sinkholing 14 of 70 detected C&C domains, the firm had discovered that 4,000 IP addresses had been infected, including 200 Windows PCs and 350 Macs. This was only a fraction of the true number of victims, Kaspersky said.

The motivation of the Icefog group was almost certainly commercial rather than ideological.

“In the future, we predict the number of small, focused APT-to-hire groups to grow, specializing in hit-and-run operations, a kind of 'cyber mercenaries' of the modern world,” Kaspersky’s report concludes.

Ericsson thinks small for a big solution to workplace wireless

Ericsson says it has a small solution to the big problem of weak mobile service in enterprises.

On Wednesday, the world's largest cellular network vendor introduced a radio that can fit in the palm of your hand and hook up to a full-size base station via conventional LAN cables. The so-called Radio Dot System, due to ship late next year, will let carriers fill large and medium-sized buildings with strong voice and data signals while keeping their equipment and management costs low, Ericsson said.

While traditional cellular networks are built around large outdoor "macro" cells, most mobile use happens indoors. To accommodate all that voice and data demand, mobile operators have long installed DAS (distributed antenna systems) throughout buildings and more recently have used small indoor cells, which are miniature versions of the macro cells on towers outside.

However, buying and installing the specialized DAS equipment is expensive, and managing and coordinating a collection of small individual cells around a building is complicated, Ericsson CTO Ulf Ewaldsson said. Among other things, small cells sharing the same spectrum with macro base stations have to turn down their power if they are in danger of interfering with the bigger cell, he said.

Ericsson plans to solve those problems by putting the core components of a macro cell into a building and spreading the radio parts of the cell throughout the rooms as Radio Dots. The Dots are disk-shaped units that weigh just 300 grams. The core unit, called the baseband, will be able to manage as many as 96 Radio Dots as one large cell. Another radio platform, called an IRU (indoor radio unit) will sit in between the dots and the baseband and house some other radio components. The system can be used for both 3G WCDMA and 4G LTE.

"We're splitting the radios in a new way," Ewaldsson said. "We put as little as possible in a radio dot that can do the radio transmission and the antenna piece on a wall."

As demand for coverage or capacity in the building grows, carriers will have many options for scaling up the system because all the dots are logically managed as one base station, Ewaldsson said. Also, the full-size macro baseband that the dots share will have a complete set of features, instead of the subset that's included in small cells, and can be more easily updated, he said.

Ericsson claims a Radio Dot System could cut installation time by 70 percent and capital cost by 60 percent compared with a DAS. For one thing, the links between elements will use the same type of Category 5, 6, and 7 copper cables used for conventional LANs, which are less expensive than the fiber-optic wiring typically used with a DAS, Ewaldsson said.

Enterprises may look to the Radio Dots when it comes time to replace a DAS, Ovum analyst Daryl Schoolar said. The system may also be an attractive DAS alternative because it could economically be deployed in just part of a building, rather than requiring the scale that a DAS needs, he said. But there are also other ripe opportunities for boosting indoor coverage, he said.

"It really could cover a lot of areas out there today," Schoolar said. "The prime real estate for the small cell is really going to be indoors ... because so much stuff goes on indoors."

However, the very BYOD trend that is bringing employees' own mobile devices into the workplace could make Radio Dots less attractive in some cases.

"What Ericsson is showing is a very operator specific solution, but if you have a deployment area where workers are spread out among four different mobile operators, the value of that solution is diminished," Schoolar said. "Also it locks a business into a specific operator, and that business may want more flexibility."

With a DAS, by contrast, it's typically easier to bring multiple carriers into the system, said Peter Jarich of Current Analysis. A Radio Dot System would be easier to install as an overlay, but in new construction, including a DAS is not as big a burden, Jarich said.

At least two major carriers are interested in Radio Dots. AT&T is participating with Ericsson in Wednesday's announcement, and Verizon Wireless also plans to test the system. "We have seen it, we like it and we look forward to testing and trialing it," Verizon spokesman Tom Pica said via email.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Ellison's team pulls off stunning America's Cup comeback

He may have angered his customers in the process, but Larry Ellison's Oracle Team USA completed a stunning comeback on Wednesday to snatch the America's Cup sailing trophy from New Zealand in the last race of the competition.

The U.S. team had been seven races behind at one point last week in a contest that is decided by the first to win nine races. It clawed its way back with eight consecutive wins on the choppy waters of San Francisco Bay. Oracle Team USA actually won 11 races but began with a two-race deficit because it was caught cheating in a preliminary round.

The victory coincided with Oracle's OpenWorld conference in San Francisco, which might have pleased Ellison had the penultimate race not fallen at the same hour as his closing keynote speech on Tuesday. Ellison gave his spot to a deputy and stayed on the water, irritating customers who had lined up to hear him speak.

He's probably not worrying about that today, having pulled off perhaps the biggest comeback in America's Cup history. Emirates Team New Zealand, whose fans were already celebrating their expected win last week, will be devastated by its loss.

Ellison is a keen sailor, and this is the second time in a row he has helped to fund and support a winning America's Cup team. He fought hard for the competition to be brought to San Francisco and selected a new class of sophisticated, high-speed catamaran to be used for the race. A wealth of technology goes into their design and operation.

The cost of designing and maintaining those boats, however, meant only four teams ended up taking part, which reportedly angered sponsors and city officials. The race was also marred by the death of British Olympian Andrew Simpson, who was killed when his team's boat capsized in training.

The Kiwis will be lamenting at least two possible missed chances for victory. Last Wednesday, when they needed one race to win and still had momentum behind them, the last race of the day was cancelled due to high winds. Oracle began its comeback the next day.

Then on Friday, the Emirates team crossed the finish line well ahead of Oracle, but too little wind meant it couldn't complete the course within the 40-minute time limit. Oracle regrouped again and the New Zealand team never won another race.

Oracle won the final race by 45 seconds, completing the roughly 12-mile course in 23:24. Its top speed was 51 mph, to the Kiwis' 53 mph.

James Niccolai covers data centers and general technology news for IDG News Service. Follow James on Twitter at @jniccolai. James's e-mail address is james_niccolai@idg.com

Not online? That's because the Internet is irrelevant and too technical, survey says

The information superhighway is not for everyone. Fifteen percent of adults still don't use the Internet, primarily because it's not relevant to them or it's too difficult to use, a recent Pew survey said.

Of American adults ages 18 and older who do not use the Internet, 34 percent said the Internet was not relevant to them, according to the results of a survey released Wednesday. By that they meant they're not interested, they don't want to use it, or they have no need for it.

Another 32 percent of non-users said it was too difficult or frustrating to go online. Fear of spam, spyware and hackers also kept people from logging on, according to the report.

The percentage of people who don't go online because it's too hard to use the Internet is a bit higher than in earlier surveys. In previous years, offline adults cited usability as a deterrent less than 20 percent of the time.

Irrelevance is a commonly cited reason why people abstain from the Internet, said Kathryn Zickuhr, a research associate at the Pew Research Center's Internet Project. But in recent years, what Pew has seen is that while fewer people have said they can't get access to the Internet, more have said that the Internet is too complicated, she said in an interview.

The short answer, she said, is that most offline adults don't have much experience with the Internet and need assistance when they try to use it. Among non-users, more than 40 percent said they have asked a friend or family member to help them look something up online, the survey said.

"We've found that most offline adults either don't see the Internet as relevant to them, or feel that it would be too difficult to start," Zickuhr said.

Another interesting finding is the number of people who have quit the Internet. Fourteen percent of offline adults said they once used the Internet but have since stopped for some reason. It's not clear why these people went off the grid, because Pew did not conduct any follow-up questionnaires, Zickuhr said.

The survey's findings were based on telephone interviews with more than 2,000 U.S. adults conducted earlier this year.

Besides apathy, other reasons people gave for not using the Internet included the expense of owning a computer or paying for the service, or being too old.

Three percent of non-users cited privacy, spyware and hacking concerns.

Overall, the percentage of people who do use the Internet has remained relatively steady over the past several years. The 85 percent of U.S. adults who use the Internet is up only moderately from 75 percent in 2008, Pew said. Ten years ago, just over 60 percent of adults were online, according to Pew.

Meanwhile, dial-up access is still being used, albeit only by 3 percent of connected adults, the survey said.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Stanford researchers develop first computer using only carbon nanotube transistors

Researchers at Stanford University have demonstrated the first functional computer built using only carbon nanotube transistors, according to an article published Wednesday on the cover of scientific journal Nature.

Scientists have been experimenting with transistors based on carbon nanotubes or CNTs as successors to silicon transistors, as silicon is expected to meet its physical limits in delivering the increasingly smaller transistors required for higher performance in smaller and cheaper computing devices that are less power-consuming. Digital circuits based on the long chains of carbon atoms are expected to be more energy-efficient than silicon transistors.

The rudimentary CNT computer, developed by the researchers at Stanford, is said to run a simple operating system that is capable of multitasking, according to a synopsis of the article.

Made of 178 transistors, each containing between 10 and 200 carbon nanotubes, the computer can do four tasks summarized as instruction fetch, data fetch, arithmetic operation and write-back, and run two different programs concurrently.

As a demonstration, the researchers performed counting and integer-sorting simultaneously, according to the synopsis, besides implementing 20 different instructions from the MIPS instruction set "to demonstrate the generality of our CNT computer," according to the article by Max Shulaker and other doctoral students in electrical engineering. The research was led by Stanford professors Subhasish Mitra and H.S. Philip Wong.

"People have been talking about a new era of carbon nanotube electronics moving beyond silicon," said Mitra, an electrical engineer and computer scientist in a press release issued by Stanford University. "But there have been few demonstrations of complete digital systems using this exciting technology. Here is the proof."

Carbon nanotubes still have imperfections. They do not, for example, always grow in parallel lines, which has led researchers to devise techniques to grow 99.5 percent of CNTs in straight lines, according to the press release. But at billions of nanotubes on a chip, even a small misalignment of the tubes can cause errors. A fraction of the CNTs also behave like metallic wires that always conduct electricity, instead of acting like semiconductors that can be switched off.

The researchers describe a two-pronged approach called an "imperfection-immune design". They passed electricity through the circuits, after switching off the good CNTs, to burn up the metallic nanotubes, and also developed an algorithm to work around the misaligned nanotubes in a circuit.

The basic computer was limited to 178 transistors, which was the result of the researchers using the university's chip-making facilities rather than an industrial fabrication process, according to the press release.

Other researchers are also working on CNTs as they worry about silicon hitting its physical limits. IBM said last October its scientists had developed a way to place over 10,000 transistors made from the nano-sized tubes of carbon on a single chip, up from a few hundred carbon nanotube devices at a time previously possible. This density was, however, far below the density of commercial silicon-based chips, but the company said the breakthrough opened up the path for commercial fabrication of "dramatically smaller, faster and more powerful computer chips."

'Viceroi' algorithm improves detection of click fraud

A group of researchers have devised an algorithm they say could help advertising networks better detect fraudulent clicks.

Fraudsters have developed sophisticated ways to perpetrate click fraud, which involves using various methods to generate fake clicks on advertisements, defrauding advertisers. Digital marketing revenues are rapidly growing and exceeded US$36 billion in 2012 in the U.S., according to the Interactive Advertising Bureau.

Advertising networks are secretive about the technologies they use to stop click spam. Often, it involves filtering out attacks, such as if thousands of clicks on an advertisement are coming from a single IP address. But defensive moves still miss attacks, wasting advertisers' money.

The researchers' algorithm, called Viceroi, is free and can be used by advertising networks. Viceroi looks for publishers who have abnormally high per-user revenues, which may be an indication of fraud. For their experiment, Viceroi was tested with a major ad network, flagging several hundred publishers as suspects out of tens of thousands, according to their research paper.

Vacha Dave, a post-doctoral researcher at the University of California at San Diego and co-author of the paper, said in interview Thursday that per-user revenue rates at some publishers were way higher than those collected by Google or Microsoft.

Viceroi works because of the economics of click spam. In one variation of the fraud, a click spammer may pay someone else a per-install fee to distribute a dodgy search toolbar designed to direct people to their advertisements.

The toolbar's search results page is stuffed with advertisements since the click spammer wants to exploit the user as much as possible before the tool is uninstalled. But the rising per-user revenue on a publisher's site would be spotted by Viceroi.

To beat Viceroi, the "click spammers must reduce their per-user revenue to that of an ethical publisher. At which point, without the economic incentive to offset the risk of getting caught, the net effect is a disincentive to commit click spam," the paper said.

Not all publishers are necessarily at fault if they have abnormally high per-user revenues. There is a lot of traffic brokering on the Internet, and it is often hard to tell where user traffic originated from, said Saikat Guha of Microsoft Research India, who co-authored the paper. Advertising networks learn from Viceroi which publishers to investigate.

"Some of the publishers are definitely being take advantage of," Guha said. "Our job is to help them find the bad traffic."

The research paper, also authored by Yin Zhang of the University of Texas at Austin, will be presented at the ACM Conference on Computer and Communications Security in Berlin, which will be held Nov. 4-8.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk

New US bill aims to curb NSA collection of phone and other records

A bipartisan group of four U.S. lawmakers has introduced legislation that will prohibit bulk collection of phone records of Americans.

Called the Intelligence Oversight and Surveillance Reform Act, the bill introduced by Democratic Senators Ron Wyden, Mark Udall and Richard Blumenthal, and Republican Senator Rand Paul will also provide for the creation of a "constitutional advocate" to argue against the government in significant cases before the secret Foreign Intelligence Surveillance Court. It will also set up a process for making significant FISC decisions public.

Former National Security Agency contractor, Edward Snowden, disclosed through newspaper reports in June that the NSA was collecting phone metadata from Verizon customers in the U.S. as part of its surveillance, which was said to also include collection of data from Internet companies. The Internet companies denied reports that the NSA had real-time access to content on their servers for its surveillance.

Under the proposed amendments in the new bill to the Foreign Intelligence Surveillance Act, the government would still be able to obtain records of anyone suspected of terrorism or espionage, or anyone in contact with a suspected terrorist or spy. But the bulk collection of "records of law-abiding Americans with no connection to terrorism or espionage will no longer be legal," according to an explanatory brief of the proposed legislation.

An amendment to section 702 of FISA also aims to close a "back-door searches" loophole by prohibiting the government from searching through communications collected under the section to deliberately conduct warrantless searches for the emails and other communications of specific Americans. Section 702 of FISA is designed "to facilitate the acquisition of foreign intelligence information concerning non-U.S. persons located outside the United States," according to the government.

The bill also aims to strengthen a prohibition against "reverse targeting," the alleged ruse employed by surveillance agencies of targeting a foreigner in order to acquire without warrant the communications of an American who is known to be communicating with the foreigner.

The bill is just one of a number that aim to curb NSA's powers in the wake of Snowden's revelations. The U.S. House of Representatives narrowly defeated in July an amendment to a defense spending bill that would limit spending on mass surveillance by the NSA.

The amendment, proposed by Rep. Justin Amash, a Republican from Michigan, would limit spending only to orders by the FISC that collect phone and other data only of a person who is the subject of an investigation. The administration of President Barack Obama had earlier said that it opposed the "effort in the House to hastily dismantle one of our Intelligence Community's counterterrorism tools." Obama has appointed a panel of experts to review NSA surveillance.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Citrix aims for VMware, Amazon with new cloud strategy

Citrix has updated its cloud computing strategy, saying that its platform which is based off the Apache CloudStack project - can span both private on-premises deployments and public clouds and is the only one in the market that takes an application-centric approach to architecting clouds.

Citrix officials say that the company's chief competitors, VMware and Amazon Web Services, "pigeon-hole" users into architecting clouds a certain way. VMware is ideal for virtualised legacy applications, but not new, cloud-native apps, Citrix says. AWS, on the other hand, is perfect for these new apps that were born to run in the cloud, but not legacy applications. Citrix's cloud platform, by being "application-centric" caters to both legacy and new-age apps, says Krishna Subramanian, vice president of marketing for Citrix's cloud platform.

Citrix's cloud platform is built on Apache CloudStack an open source project the company spun out of work in the OpenStack community. Unlike the OpenStack backers though, the project is more closely aligned to AWS APIs. The newest version of Citrix's cloud platform lets customers set up regions and zones, similarly to how AWS is architected. Customers have the ability to control policies for each of these zones. So, for example if legacy bare-metal apps are running in one zone, it will use a certain architecture. If cloud-native apps are running on virtualised servers in another zone, they can have different characteristics. Elastic block storage spans all regions.

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Forrester analyst James Staten is buying into the application-centric approach, calling it a differentiator for Citrix. "The fact that you can use a single cloud architecture to set up a legacy apps pool and right next to it (logically) a modern app pool is definitely unique in the market," he wrote in an e-mail. "Nearly all the rest of the IaaS cloud software solutions out there are optimised for one environment or the other."

Citrix CloudPlatform 4.2 is the control plane for deploying clouds, and the updated version comes with new integration with VMware and Cisco UCS equipment; it starts at $1,400 per socket for a license. Citrix also released CloudPortal Business Manager, which allows customers to set up web portals for users.  

Citrix may call itself application-centric, but Gartner analyst Chris Wolf says the platform still has a ways to go. Unlike VMware, Citrix does not have tight integration with tools like Chef, Puppet and Salt that help users automatically deploy and manage virtual machine templates. "Citrix needs to show turnkey integration ... with application performance monitoring in order to meet customers' application-centricity demands," Wolf wrote in an e-mail.

Even so, Wolf says it's still early days in the cloud computing market, and there's plenty of time for Citrix to continue to advance its strategy, and specifically compete with the likes of VMware and Amazon. "Citrix has a capable platform and has over 200 customers using it, but the challenge it will face will be building a cohesive third-party ecosystem. Ecosystem partners such as management, backup, and security vendors are gravitating toward OpenStack, AWS, and vCloud." Citrix could more fully embrace the OpenStack community that has developed, but ever since CloudStack left OpenStack two years ago, Citrix has been moving away from the community rather than gravitating toward it.

Senior Writer Brandon Butler covers cloud computing for Network World and NetworkWorld.com. He can be reached at BButler@nww.com and found on Twitter at @BButlerNWW. Read his Cloud Chronicles here.

Patent trolls will gain from a single European system, vendors warn

The creation of a pan-European patent system will help spread abusive patent litigation to Europe and could lead to E.U.-wide sales bans on products, leading tech vendors have claimed.

Tech giants including Apple, Google, Samsung, Microsoft, Cisco, HP, Yahoo, Intel and BlackBerry sent an open letter to European officials on Thursday outlining their concerns about the formation of a new unified patent court system in the E.U.

While the unified system has been heralded as simplifying the patchwork of rules that currently exist across the single European market, vendors say it also brings the threat of a one-stop-shop for quick region-wide sales bans. And allowing cases to be split up, with the validity of a patent decided in one court while infringement issues are decided in another, can expose product vendors to penalties even before the patent in question is declared sound, they claim.

The proposed rules of the new system could favor the practices of Patent Assertion Entities (PAEs), popularly known as patent trolls, the companies wrote. PAEs are individuals and firms that own patents but do not directly produce goods or services using the patented innovations and instead assert their intellectual property rights against companies that do.

The current draft rules create "strong incentives for abusive behaviors and harm the innovation that the patent system is designed to promote," the companies wrote in the letter. The letter was signed by 14 companies and two industry associations, among them Adidas, Bull SAS, Deutsche Post, Deutsche Telekom, Telecom Italia, the European Semiconductor Industry Association (ESIA) an the French Syndicat de lIndustrie des Technologies de lInformation (SFIB), a French IT industry association.

To mitigate potential abuse, PAEs should not be allowed to use sales injunctions for the sole purpose of extracting excessive royalties from operating companies that fear business disruption, they wrote. Also, when granting injunctions courts should be required to assess proportionality -- in practical terms, that a proposed measure is no more onerous than is necessary to achieve the immediate objective.

PAEs could also abuse a system that allows courts to separately deal with the questions of whether a particular patent is valid and whether it has been infringed, the companies wrote.

The unified patent agreement allows the validity and the infringement questions to be decided in different courts in the same case.

Splitting those decisions into separate cases is known as bifurcation. A similar system is currently used in Germany, which makes Germany an attractive country for European patent litigation because in some cases it can allow plaintiffs to obtain a quick infringement ruling while the validity case drags on for years.

If this system was to be introduced for most of the European market, it could lead to quick E.U.-wide injunctions, barring products from the European market, before any determination of whether the patent in question is actually valid, the companies said.

"Given the drastic impact of such an injunction on the defendant, unprincipled plaintiffs would be able to extract substantial royalties (through settlements or verdicts) from European and other companies based on low-quality, and potentially invalid patents," they added.

In the case of bifurcation, the companies' argument is not good, said Willem Hoyng [cq], a member of the Preparatory Committee, in an email.

"The companies do not understand that the future bifurcation possibility is different from the present German system," Hoyng wrote. While Germany requires splitting cases, in the new system the court does not have to split up the validity and infringement cases, said Hoyng.

Bifurcation can only do harm if, as in Germany, the invalidity court is slower than the infringement court, Hoyng said.  "It is clear from the Rules of proceedings that should not happen in the new system," he added.

Hoyng also indicated that he thinks the companies' fear of patent trolls is overstated. "I do not understand this fear because the new system is not different from what is [currently] the situation in almost all European countries," he said.

In extreme cases the court can apply general concepts of law such as misuse of right, he said. "However it is totally unacceptable when a University would be unable to enforce a valuable patent because it does not exploit such patent. Valid patents should be respected," he said.

And even if there are weak patents, they do not survive in a court of law manned by good judges, Hoyng wrote.

There is an Oct. 1 deadline for offering written comments on the draft rules. After the consultation period is closed, the Preparatory Committee will ask the Drafting Committee to evaluate the contributions received and to make proposals and comments ensuing from the public consultation.

A public hearing on the draft rules is scheduled to take place in early 2014.

UK startup SaaSID bought by cloud provider Intermedia after only a year in business

Just over a year since it took the wraps off its first product, UK cloud software startup SaaSID has been acquired by US hosting provider Intermedia for an undisclosed sum.

UK startups in sectors such as cloud and security have a habit of being bought but SaaSID’s swallowing by the larger firm is still rapid by most standards; SaaSID launched its first software in May 2012.

SaaSID makes possible cloud single sign-on (SSO) access, management and security for web applications such as Google Apps, Salesforce, Office365, Facebook and Twitter that were originally designed for consumer use.  

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Founded in 1995, Intermedia offers a suite of cloud services, including some from third-parties, all of which will now be able to offer single sign-on convenience. It is one of the world’s largest Exchange hosted providers.

It is understood that SaaSID’s 25-person team will be retained with the current Bristol and Basingstoke offices, with founder Ed Macnair retained as EMEA managing director for the combined operation.  Sources said that that a meeting with Intermedia’s developers next week would cover product integration.

The US firm had made SaasID a “great offer” in a deal brokered through the startup’s seed investors and advised by Rupert Cook of Realise Capital Partners.

“SaaSID was founded to enable businesses to fully benefit from using cloud-based services more broadly while increasing security,” said former SaaSID CEO and new managing director EMEA, Ed Macnair.

“Our single sign-on and cloud application control software is the perfect fit for all of Intermedia’s customers. SaaSID’s customers will immediately gain from the resources and expertise of a global organisation like Intermedia, as well as its ‘worry-free’ support model.”

An integrated Intermedia and SaasID service will be offered from early 2014, the firms said.

Malicious browser extensions pose a serious threat and defenses are lacking

Although the number of malicious browser extensions has significantly increased in the past year many security products fail to offer adequate protection against them, while others are simply not designed to do so, according to a security researcher.

Attackers have already used such extensions to perform click fraud by inserting rogue advertisements into websites or by hijacking search queries, but research has shown that this type of malware has the potential to cause much more damage.

Last year Zoltan Balazs, an IT security consultant with professional services firm Deloitte in Hungary, created a proof-of-concept malicious extension that could be controlled remotely by an attacker and could steal authentication credentials, hijack accounts, modify locally displayed Web pages, take screenshots through the computer's webcam, bypass two-factor authentication systems and even download and execute malicious files on a victim's computer.

And last week the European Union Agency for Network and Information Security (ENISA) warned in its midyear report: "An increase in malicious browser extensions has been registered, aimed at taking over social network accounts."

Earlier this year Balazs investigated how various security products protect users against malicious browser extensions and presented his findings at the OHM2013 security conference near Amsterdam in August. He performed tests against browser security extensions, sandboxing software, Internet security suites, anti-keylogging applications and financial fraud prevention programs recommended by some banks.

Many of these products either don't detect and block malicious extensions at all, or their protection can be bypassed, sometimes very easily, he found.

Not all of the tested products claim to protect against malicious extensions, but Balazs said he tested them because some users might believe they do.

For example, the NoScript security extension for Mozilla Firefox is designed to block plug-in content from executing without user authorization, and also blocks some Web-based attacks such as cross-site scripting or clickjacking. However, it doesn't protect against malicious browser extensions or local malware, Balazs said.

BrowserProtect, another Firefox extension, claims to protect the browser against "homepage, search provider, extension, add-on, BHO and other hijacks." This extension also fails to protect against malicious extensions, the researcher said.

Browser security extensions are not really trying to protect against malicious extensions and they wouldn't be able to because by design they run with the same privileges as those extensions, Balazs said.

Balazs also tested Internet security suites from five top antivirus vendors that he declined to name. The level of protection they offered against malicious browser extensions varied from none to good.

One of the tested products detected and removed the researcher's malicious Firefox extension, but he was able to bypass the detection signature by adding a single space character at a specific location in the extension's code.

A product from a different vendor came with a "safe browser" feature that involved creating a clean Firefox profile with no extensions installed. However, once it had created the profile, it kept using the same one, which meant that a malicious extension installed in the user's regular browser profile could copy itself to the "safe browser" profile, Balazs said.

Balazs said a third vendor, asked in a forum if its product detects or blocks Firefox keylogging extension Xenotix KeylogX, replied there was no need because "browser add-ons are subject to the same sandbox the browser runs through." The vendor recommended that users remove any suspicious extensions themselves, he said.

For Balazs, the answer highlights the poor understanding some vendors have of this type of threat, because Firefox doesn't have a sandbox and malicious browser extensions can be installed silently by malware without users ever knowing.

Some other "safe browser" implementations, such as Avast's SafeZone and Bitdefender's Safepay, did block the installation of malicious extensions. These offerings are designed to give users a way to bank and shop securely online using a custom browser based on Chromium, the open source project behind Google Chrome, within a secure environment similar to a sandbox.

Even though Balazs didn't find a way to install malicious extensions directly into the Avast SafeZone or Bitdefender Safepay browsers, he claims to have found a weakness that could allow an attacker to spy on traffic, even when users access HTTPS websites and their connection is encrypted.

If the victim's primary browser is Firefox, the attacker could first use social engineering to trick the victim into installing a malicious extension. He could then use that extension to download and execute a piece of malware designed to change the system-wide Internet proxy settings and to install a rogue root CA certificate into the Windows certificate store.

Chromium, along with Internet Explorer, uses the system-wide proxy settings and certificate store, so an attacker could exploit this to pass all traffic from the Avast SafeZone or Bitdefender Safepay browsers though a proxy server he controls and perform man-in-the-middle interception using the new root CA certificate added to the system.

This attack would also bypass Chromium's public-key pinning protection, which is supposed to detect whether the public keys used for the certificates of some popular websites such as Gmail or Paypal have been changed by a man-in-the-middle attacker, Balazs said.

The user will not receive any certificate warnings inside the browser because Chromium allows user-installed root CAs to override pins, a design decision explained by Google software engineer Adam Langley in a May 2011 blog post.

Windows does show a security prompt when a new CA certificate is added to the certificate store, but the malware is able to automatically confirm the action, so the user doesn't have to click anything.

A Bitdefender spokesman said Wednesday that "Safepay is designed as an additional layer of security to protect sensitive activities such as online banking or shopping. Although it has strong self protect mechanisms, Safepay is not a replacement for an AV [antivirus] product nor is promoted as such."

The product performs a security assessment to identify active malware on the computer before the secure browsing session is initiated, but if malware previously infiltrated the system and installed a rogue root certificate there is a chance that the session could be compromised, the spokesman said. "Nevertheless, this scenario is plausible when users don't have an antivirus product installed."

"We have an ongoing project that aims to discover Safepay's vulnerabilities in different scenarios (system or third-party related) and develop solutions to minimize the risks of compromised user sessions," he said. "The assessment of installed certificates on the system is at the top of our list."

Avast did not immediately provide a statement regarding this attack method.

Some security products recommended by banks to their customers and designed to prevent malware-related financial fraud were also found to lack protection against malicious browser extensions. Balazs tested six such products from different vendors, but only one blocked browser extensions in his tests.

Since then, a few more have added protection for this type of threat, but they use different approaches, he said. Some block all extensions while others detect only malicious ones, he said.

Balazs also tested Sandboxie, a program designed to isolate applications from the operating system by running them inside a sandboxed environment and preventing them from making permanent changes to other programs or data on the computer.

The product's website says that "running your Web browser under the protection of Sandboxie means that all malicious software downloaded by the browser is trapped in the sandbox and can be discarded trivially."

However, that only stops a rogue browser extension within Sandboxie from writing to local storage outside the sandbox. It can still log keystrokes and store them within the sandbox, capture images with the computer's webcam, or steal passwords and authentication cookies stored in the browser, the researcher said.

In general, malicious Firefox extensions can modify the settings of other extensions or the browser itself, but they can also indirectly modify the source files of installed extensions by downloading and executing a piece of malware designed to do this when the browser is closed, Balazs said. (The source files are locked while the browser is running.)

During a presentation Saturday at the Hacker Halted USA 2013 security conference, Balazs demonstrated how malware can insert backdoors into legitimate extensions and the effects this can have on the user's security. For his demonstration he backdoored the LastPass extension for Firefox.

LastPass is a password management service that uses a browser extension to automate form filling and website authentication. This allows users to have strong, separate passwords for all online services they use, while remembering only one master password that unlocks their encrypted password vault.

For increased security, LastPass supports two-factor authentication using the master password and one-time codes generated by physical YubiKey USB authentication devices or mobile applications such as Google Authenticator, Toopher and Duo Security.

LastPass claims on its website that it protects users against phishing scams, online fraud, and malware -- in particular key loggers. However, according to Balazs, the extension can't protect users against malware like financial Trojan programs that hook into the browser process, against other malicious browser extensions, or against local modifications of its own code.

Balazs' demonstration at Hacker Halted showed how a piece of malware could modify the code of the LastPass extension installed in Firefox so that it sends the user's master password and a YubiKey authentication code to an attacker, who could then use the information to access the user's password vault.

He released his proof-of-concept code for backdooring the LastPass extension on GitHub and said that developing it only took two hours.

Most of Balazs' recent research focused on Firefox because it's easier to trick users into installing malicious extensions in this browser by using social engineering. Unlike Firefox, Chrome only allows the installation of extensions from the official Chrome Web Store repository and not from third-party websites, which makes it harder for attackers to distribute malicious extensions.

Wednesday, September 25, 2013

Samsung provides tools to nudge Galaxy devices into enterprise

Samsung is wooing developers in an effort to push its Galaxy smartphones and tablets, which have been popular with consumers, into the enterprise.

Samsung has released programming tools for the Galaxy devices to members of its Solutions Exchange, a program announced on Wednesday to help companies write and deploy mobile applications on Samsung smartphones and tablets.

The tools released include the Galaxy software development kit and 1,000 APIs (application programming interfaces), designed to enable developers to write applications that take advantage of features unique to Samsung's latest Galaxy devices.

With the move, Samsung hopes developers will write applications tuned for the enterprise. For example, developers will be able to write applications that take advantage of the S-Pen, which is a stylus that allows users to take notes on Galaxy devices that support the feature. The notes are recognized and digitized by the Galaxy devices, and can then be used in telephony, web or mapping applications. Samsung sees S-Pen as a key business tool, and has been wooing developers to write apps for that feature for more than a year.

Developers will also be able to write applications for newer Galaxy features like Air View and Air Gesture, which track hand and eye movement to perform functions on the mobile devices without touching the screen.

Samsung is targeting those applications for its SAFE (Samsung for Enterprise) devices, which include the Samsung Galaxy S4 and S3 smartphones, Galaxy Note 2 and 3 "phablets" -- hybrid phone and tablet devices -- and Galaxy Note tablets. Samsung has customized the Android OS of the devices so enterprises can secure and manage them.

Samsung will also work directly with companies looking to implement specific applications. Samsung will help identify specific applications and technologies required by customers, and help them deploy the technology. Samsung also said it will work with third-party application developers and integrators to help meet customer requirements.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

UK SMEs offered first ever cyberattack insurance policy

Security assurance firm NCC Group has partnered with specialist Oval to offer UK-based SMEs what it believes is the first affordable cyber-insurance policy for the sector bundled as part of a network assessment service.

Marketed under the banner ‘Cyber Assured’, the firm hopes it can extend the idea of protecting against a variety of cyber-events to a sector that has traditionally considered such protection out of its price bracket.

The insurer believes it can offer protection from around £500 ($780) per annum for £50,000 of cover, although this price will also require NCC Group to carry out an annual vulnerability assessment and online survey to spot potential security weaknesses which adds to the final cost.

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If NCC's assessment uncovers specific problems these might need to be fixed first for the insurance to be offered at a given level but as with any other form of insurance that would be between the organisation and the insurer.

According to NCC Group assistant director Daljitt Barn, who is also the chairman of the Cyber Risk and Insurance Forum (CRIF), the definition of SME covered firms up to £10 million turnover, with a higher tier of insurance for those up to a £50 million annual turnover.  

Despite these provisos, NCC Group is convinced that SMEs can find value in applying the concept of insurance as a way of managing risk.

“Many SMEs have been ignoring the threats to their IT infrastructure as they simply don’t understand their exposure. They assume they aren’t viable targets, and they won’t consider insurance due to the cost,” said NCC Group CEO, Rob Cotton.

“Cyber Assured will not only raise the standards of their [SME] defences, but also provide peace of mind through an affordable insurance option. Between NCC Group and Oval we are demystifying the cyber risk and providing a complete package of protection.”

The policy covers for losses from data breaches, he said, quoting Ponemon research putting the costs of this type of issue at up to £86 per record to clean up. Such breaches would not be covered by any conventional insurance policy. Other insured events would include cyber-extortion and costs associated and services going offline, for instance aas a result of a DDoS attack.

Historically, doubts have been raised over whether the wider market for cyber-insurance is viable given the tiny number of firms offering products and the high cost of insurance. NCC’s solution of tying insurance to assessment services is both clever marketing for its own services but also a novel way of solving some of these problems.

Others have argued that a functioning insurance market mitigating cyber-threats could act as a good influence on the security behaviour of firms willing to invest in mitigation to reduce premiums.

Egnyte launches ‘PRISM protection’ file sharing appliance to beat cloud worries

Cloud firm Egnyte has announced a file-sharing appliance called Storage Connect it hopes will appeal to organisations that don’t feel comfortable transferring and storing sensitive files using cloud data centres.

The sales pitch is that Storage Connect functions as part of a ‘PRISM prevention program’, an angle that hooks into worries over who can access files once they leave the firewall and whether data might be exposed by unofficial ‘shadow’ cloud services such as Dropbox.

Egnyte describes the most sensitive files as being ‘red data’ which the Storage Connect virtual appliance makes it possible to keep within the firewall by brokering access to and organisation’s storage area network. Users access files using an encrypted channel to the device (including an Android or Apple mobile) that offers better performance that a conventional VPN, Egnyte said.

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No sensitive data or metadata was transferred to or through Egnyte’s cloud while access to files could be governed using credentials defined through and organisation’s Active directory setup. Files could also be shared using password-protected links with expiration dates.

“Whether due to concerns about privacy, security, intellectual property, or M&A, businesses want a way to combine the simplicity and ease of use associated with cloud-file sharing with the security and privacy of their own infrastructure,” said Egnyte CEO, Vineet Jain.

According to Jain, an IDG survey carried out for Egnyte found that 60 percent of firms believed that file-sharing behaviour had compromised their data with the same number also believing that important files would always need to be stored within the firewall to be secure.

“Our PRISM Protection Program provides business with everything they need to detect cloud-only file sharing services that introduce risk into their company. It also offers a simple yet secure way of accessing and sharing those files from their existing infrastructure that are too sensitive to be shared via the cloud,” said Jain. 

Despite the PRISM tag, the service will probably appeal as much for its performance benefits than any worries that an external actor such as the NSA might be accessing files. One objection to the topology is that it mimics a conventonal storage system. If files are not in the cloud then what is the innovation? Egynyte's answer is that it allows organisations to make these files available while using the cloud for less sensitive forms of data at the same time.

Earlier this year, Oxford University’s technology transfer office ISIS Innovation announced it has started using Egnyte’s cloud to manage intellectual property channelled from 79 different spin-off startups. Egnyte launched its hybrid cloud in 2012.

Microsoft sole Windows RT tablet vendor as Dell's XPS 10 is 'unavailable'

Dell's XPS 10 tablet models with Windows RT have been removed from the company's website, which analysts said could leave Microsoft as the only vendor selling ARM-based tablets running versions of Windows RT.

The XPS 10 Web page lists models of the tablet as being "unavailable," and points users to the Latitude 10 tablet, which runs Windows 8 and has an Intel Atom processor. Microsoft, which sells Surface RT, is now the only device maker selling a tablet with Windows RT.

Dell is holding an event in New York on Oct. 2 where the company will announce new tablets. The company did not comment on whether a new Windows RT 8.1 would be launched, but has showed a new 8-inch Venue tablet with Android OS and the Intel Atom processor code-named Bay Trail.

"We're going to be announcing our full tablet portfolio at the event in New York next week," said a Dell spokeswoman in an email

Dell was the only device maker other than Microsoft selling a Windows RT tablet after Lenovo, Asus and Samsung bailed out on the device. Dell is holding its tablet event ahead of Microsoft's release of Windows 8.1 RT as a free download for existing Windows RT devices after Oct. 18. Microsoft on Monday announced Surface 2, which is the first tablet based on Windows 8.1 RT.

Analysts said Dell could launch an XPS 10 successor with Windows RT 8.1, but chances are remote.

Right now, no device maker is interested in Windows RT other than Microsoft with its Surface 2, said Patrick Moorhead, founder and president of Moor Insights and Strategy.

"I think all we can assume is that Dell sold out their current inventory of RT tablets," Moorhead said.

Lenovo, Asus and Samsung have announced new Windows 8.1 hybrids with Intel chips, but have not indicated they would relaunch an RT product based on an ARM processor.

Companies typically don't stop selling products that are doing well, and the discontinuation of XPS 10 is just the latest RT failure, said Jack Gold, principal analyst at J. Gold Associates.

"I just don't see why you would stop selling your existing product until the new product comes out," Gold said.

A Dell tablet with Windows RT 8.1 product could be announced next month, but that wouldn't be a smart business decision, Gold said.

"If they do, they will be bucking the trend of other vendors getting out of RT," Gold said.

But there are always exceptions, and there is a remote possibility that Dell may give Windows 8.1 RT a try with a new tablet. But in the long run, Dell is moving to Android and Windows 8 for its tablets, said Bob O'Donnell, vice president for clients and displays research at IDC.

Existing XPS 10 users will likely get an upgrade to Windows 8.1 RT, O'Donnell said. The XPS 10 runs on a Snapdragon chipset with Qualcomm, which has collaborated with Microsoft on the new OS.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

AT&T teams up with Fon for overseas Wi-Fi

AT&T offered more Wi-Fi coverage to international roaming customers on Tuesday through a deal with Fon, the Spanish crowdsourced wireless provider that lets users share their Wi-Fi with other Fon members.

The partnership will provide access to about 800,000 Fon hotspots in Portugal and Poland to subscribers who buy the 300MB or 800MB AT&T Global Data Add-On services. Those plans, which cost US$60 and $120 per month, respectively, include 1GB of data per month via certain Wi-Fi hotspots in addition to the cellular data allowances. The Fon partnership expands the number of hotspots that subscribers will be able to use.

Wi-Fi may play a big role in the future of international data roaming because it runs over unlicensed radio spectrum instead of more expensive and scarce cellular frequencies, analysts say. Wi-Fi also uses a set of frequencies that are nearly universal, bypassing the complexities of dealing with the many different cellular bands in use around the world.

AT&T has led the charge on this trend among U.S. carriers, analysts say. Earlier this year, AT&T formed a partnership with Boingo that gave Global Data Add-On subscribers access to Boingo hotspots in 30 international airports around the world as part of the 1GB monthly allowance. Due to Boingo's expansion, that deal now covers 33 airports.

To use the Fon networks, subscribers will need to download the AT&T Wi-Fi International app, which is available on iPhones, iPads and Android devices. Android devices will automatically connect to an included Fon hotspot as soon as it is in range. With iPhones and iPads, subscribers will have to manually log in the first time they want to use Fon hotspot and then will get automatic access to Fon hotspots after that, according to AT&T.

Fon sells special Wi-Fi routers that set up two separate networks, one private and one for the use of other Fon customers. The routers are set up mostly in residential areas but also are available to businesses. The deal with AT&T, which is not exclusive, provides access to about 400,000 Fon hotspots in Portugal and 400,000 in Poland.

Also as part of the partnership, Fon customers, including those in the U.S., will get free access to AT&T's more than 30,000 Wi-Fi hotspots in the U.S.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Larry Ellison skips OpenWorld keynote to watch America's Cup

Larry Ellison had a choice on Tuesday afternoon: watch a crucial race for his America's Cup sailing team or deliver a keynote to thousands of customers and partners at Oracle OpenWorld. In the end, the Oracle CEO stayed down by the water.

Ellison cancelled his keynote at the last minute to watch Oracle Team USA in a crucial race. Both events were due to start at 2:15 p.m. Pacific time.

Oracle chairman Jeff Henley took the stage at OpenWorld with an embarrassed half-smile. "Larry apologizes," Henley said. "Can't be in two places at once." Attendees immediately began streaming out of the massive conference hall at San Francisco's Moscone Center.

Ellison's speech was given instead by Thomas Kurian, executive vice president of product development -- who had just given a keynote on Tuesday morning and was apparently asked to revive the effort.

"The line was out the door to get in this place," said OpenWorld attendee Dan Loomis, an IT architect who asked his employer's name be withheld. "[Ellison's keynote] seems to be the highlight of the conference for a lot of people."

"My CEO would say that talking to customers and partners is a priority," he said. Ellison skipping the speech "sends the wrong message," Loomis said.

Ellison is an avid sailor whose team won the previous America's Cup, and he fought hard to bring this year's tournament to San Francisco Bay.

Few expected Oracle Team USA to still be in the contest Tuesday, but the team has made a remarkable recovery to come back against Emirates Team New Zealand.

At one point last week the Kiwis led by eight races to one. They needed one more race to clinch the trophy, while Oracle needed to win eight races in a row. But Oracle staged a comeback and was trailing by one race at the time Ellison cancelled his speech.

In fact, Oracle has won enough races to win this year's Cup, but it started the finals with a two-race deficit because it was found to have cheated in a preliminary round last year.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Meet the new LinkedIn, now also for career-focused teens

Forget the older crowd. LinkedIn now wants to help teenagers get into college and find a good job, in a strategy shift that analysts said could eventually pay off for the company.

Traditionally a site for business professionals, LinkedIn changed its terms of service recently to let younger people register. While the age limit was previously 18 or over, 14-year-olds can now join in the U.S., Canada, Spain and several other countries. In other places the minimum age is 13.

LinkedIn hopes people who may not even be old enough to drive a car will now turn to the site to connect with colleges, alumni and older working people to jump-start their careers.

Young people apparently have little time to waste.

"Smart, ambitious students are already thinking about their futures when they step foot into high school -- where they want to go to college, what they want to study, where they want to live and work," said Eric Heath, LinkedIn's legal director for global privacy and public policy, in a blog post announcing the changes, which were effective Sept. 12.

While that may be true for some, whether teenagers will use LinkedIn to help map out their lives remains to be seen.

For certain students, LinkedIn could be a valuable service. A critical element related to the new age policies, for instance, is LinkedIn's new University Pages, which let colleges and universities deliver news through the site, answer questions and engage with LinkedIn members.

For college-minded, tech-savvy students who know schools are looking at them online, LinkedIn's new age requirements are a great idea, said Charlene Li, an industry analyst with the Altimeter Group.

"Older teens who want to brand themselves online will be doing this," she said.

But for younger teenagers -- the 13-, 14- and 15-year-olds for whom college may not yet be on their radar -- LinkedIn may be stretching it. "LinkedIn is not exactly a natural place for them," Li said. More natural places for teens to congregate online might be Facebook, Instagram or Snapchat.

By catering to a younger demographic, LinkedIn doesn't really risk diluting its brand because it is still focused ultimately on careers, analysts said.

LinkedIn's main issue is attracting more users, and opening its doors to a younger audience could help achieve that, though it won't happen overnight, said Brian Blau, an analyst with Gartner.

LinkedIn went public in 2011 and is under pressure to grow its user base. The site has about 238 million active users, a spokeswoman said. Facebook, meanwhile, has more than a billion.

The site's University Pages and new age policies provide an opportunity for growth, LinkedIn spokeswoman Crystal Braswell said. The site already has 30 million students and recent college grads as members, and they're the fastest-growing demographic on the site, Braswell said.

With around 1,000 University Pages, only a small slice of the world's colleges have a presence on LinkedIn, but roughly 200 are being added each week, Braswell said.

LinkedIn hopes teachers, parents, counselors and family friends will help in guiding students through the process of setting up an account.

"Colleges and counselors could help get the word out," Altimeter's Li said. The University Pages and new age policy might not lead to big gains in the immediate future but the site could benefit down the road, she said.

In a year or two, some high schools could make it a requirement for college-bound students to sign up on the site, Li said.

But LinkedIn must be careful not to add more stress to a process that's highly commercialized in some countries, and complicated by guidebooks and rankings, said Gartner's Blau. Students don't need any more pressure, he said, but having another resource could be a good thing.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Twitter tries 'magic' to keep users in the know

Didn't catch that tweet all your friends were talking about? Twitter wants you to see it next time, using a new feature that will notify you of tweets and contacts that Twitter thinks you'll want to know about.

Starting Tuesday, users of Twitter for the iPhone and Android devices will start getting push notifications when multiple people in their network follow the same user, or when they favorite or retweet the same tweet, Twitter senior software engineer Venu Satuluri announced in a blog post.

The feature could serve an important function as Twitter grows and its users' feeds get more saturated with content. The idea is that if enough of a person's contacts are interacting with a particular tweet, or following another contact, Twitter thinks that person will want to know about it.

It's an offshoot of an experimental Twitter account called Magic Recs, which had been used to send personalized recommendations to followers via direct messages. That account has more than 18,000 followers.

"We're bringing this functionality to more users," Satuluri said Tuesday, after Twitter made tweaks to the account's algorithms so that the most relevant updates are sent. Users who don't want to get the notifications can turn them off in their account settings.

Twitter didn't say how many of a person's contacts will need to flag a tweet or follow a contact before it gets brought to their attention. The notifications will get pushed to people's phones and appear on the lock screen.

Followers of Magic Recs will continue to get direct messages instead of notifications, Twitter said in a tweet. The company said it would continue to experiment with new features and different types of recommendations using the Magic Recs account.

Providing more personalized content to cut through the noise could become a goal for Twitter as the company scales out its service ahead of an initial public offering. Twitter announced earlier this month that it had filed plans for an IPO.

Twitter is also looking to bring more promotional content to the site, such as through its Amplify program, which allows television broadcasters to place video content into users' streams.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Oracle OpenWorld attendees fume over Ellison keynote

Oracle customers pay handsome fees to attend its OpenWorld conference each year, and many of them felt short-changed Tuesday when Larry Ellison skipped his final keynote to watch an America's Cup sailing race.

Oracle Team USA has staged a thrilling comeback in the competition and will take home the prize if it wins one last race Wednesday against Emirates Team New Zealand. But while that's exciting for Oracle's CEO, some OpenWorld attendees have been less impressed.

He shouldnt have done that, that was my first reaction," said Chris Laxmi, a database administrator who waited in line for 20 minutes to get into the keynote and looks forward to Ellison's keynotes each year. "I'm disappointed."

Attendees still got a keynote, but it was delivered by Executive Vice President of Product Development Thomas Kurian, who was unable to prevent a lot of people from leaving the auditorium when they were told Ellison had cancelled.

Boris Aguirre, a systems integrator and Oracle professional from Ecuador, had stood in line for 30 to 40 minutes. "I felt like the America's Cup thing was more important [to Ellison] than the event," he said. "From the perspective of my clients, I feel it was not good."

Kurian's stand-in keynote was also "not good," Aguirre said. In fact, Kurian was almost boring, he said.

In contrast, Microsoft executives who gave a partner keynote prior to Ellison's scheduled slot stole the show, Aguirre said. "When you show people another company making a very good speech and then Oracle's people tell you, 'Larry's not coming,' it's a double bad impact."

Ellison's no-show drew plenty of reactions on Twitter as well, including some that poked fun.

"BREAKING: @larryellison to provide FREE cloud software to 60,000 OpenWorld attendees he stood up. Says 'Man Up,'" wrote one Twitter user.

"The most successful execs know how to delegate," wrote another.

It wasn't clear how compelling Ellison's speech would have been anyway, since the material Kurian used seemed mostly to concern announcements discussed earlier in the conference.

Ellison might have made the speech if Oracle hadn't staged its comeback. If New Zealand had won the first race Tuesday, the competition would have been over and Ellison could conceivably have made it to the stage on time. But Oracle held on, and the contest will now be decided with a final race Wednesday, wind permitting.

If Oracle wins it will be sweet revenge for Ellison, whose San Francisco home was "flag-bombed" in the early hours last week by a group of New Zealand supporters wearing ninja costumes.

Oracle had other options Tuesday that it didn't take, said analyst Ray Wang of Constellation Research.

"What I would have suggested was broadcast the race live, then have Larry helicopter in and do a live feed of him walking into Moscone, talking about Exadata and how big data helped change the game," Wang said. "That's what he should have done, not leave folks hanging."

Ellison's move did little for Oracle's customer relations, said analyst Michael Krigsman of consulting firm Asuret.

"While Oracle asks customers to prioritize its products over competitors, Ellison made the decision that racing, his passion and hobby, is more important than customers," Krigsman said via email.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

With LTE, AT&T isn't done evolving its network yet

Several network initiatives that AT&T is unveiling this week show the carrier is far from finished advancing its network even as it achieves a broad footprint with LTE.

The company plans to roll out LTE Broadcast technology over the next three years to help it deliver specialized content in specific locations, among other things, Chairman and CEO Randall Stephenson told a Goldman Sachs financial conference on Tuesday morning. In the same session, he laid out AT&T's goal to convert its whole infrastructure into a system based on LTE, IP (Internet Protocol) and cloud computing, replacing traditional copper phone lines by 2020.

On Monday, AT&T signaled a commitment to SDN (software-defined networking) and NFV (network functions virtualization), including seeking out some technology vendors with new ideas. And in a nod to the potential of unlicensed Wi-Fi networks, on Tuesday it announced a partnership with Fon to expand international Wi-Fi roaming.

LTE officially stands for Long-Term Evolution, and the global standard is itself evolving into upcoming versions that will allow for features such as combining separate frequency bands into one. But AT&T, like other carriers, is also continuing to find ways to make its network more efficient and better able to handle mobile data demand that Stephenson said is rising by about 50 percent every year.

One way AT&T hopes to meet that demand is with LTE Broadcast, which is designed to send specific kinds of content at certain times and places, such as sports venues. This can ease the burden on a carrier's general wide-area mobile network, reducing congestion and boosting subscribers' speeds.

AT&T's plan for LTE Broadcast is a kind of homecoming for the technology, which has its roots in Qualcomm's defunct FLO TV. After the FLO TV video service that Qualcomm delivered failed to catch on, AT&T acquired the spectrum over which it ran. The carrier now plans to use those frequencies for LTE Broadcast.

The spectrum buy gave AT&T 12MHz of frequencies in the most populous areas of the U.S. near the coasts and 6MHz toward the middle of the country, Stephenson said. It will use that spectrum to deliver video and other content in settings where most people are interested in seeing the same things, he said.

As an example of how LTE Broadcast might be used, a carrier could activate it in a football stadium during a game to deliver football-related content, such as instant replays and highlight videos from other games. Instead of each fan pulling down an individual stream for each of those videos, one stream could go out to all of the subscribers in the stadium.

LTE Broadcast could also be used for live news reports or sports events over a broader area. Another use that some envision for the technology is delivery of big chunks of content, such as OS updates, during the night or times of day when the cellular network isn't as heavily used.

A few key differences between LTE Broadcast and FLO TV should make the newer technology more successful, Ovum analyst Daryl Schoolar said. For one thing, LTE Broadcast won't need a dedicated network like the one used for FLO TV, he said. The spectrum could be allocated to broadcasting at times and in places where it's likely to be needed rather than being locked into sending the same channels all the time to a whole city. When it's not needed, those frequencies might be aggregated into the block used for general mobile data, Schoolar said.

In addition, more devices are likely to be able to carry LTE Broadcast. Network vendors including Alcatel-Lucent and Ericsson are backing the technology, and Qualcomm executives said in April that the company was building support into its popular Snapdragon mobile processors.

Stephenson expects AT&T's LTE Broadcast infrastructure to be "mature in scale" within three years. AT&T's rival Verizon Wireless is pursuing the same technology, with executives there saying they plan to offer services next year.

AT&T has also committed itself to new technologies for its underlying network architecture. On Monday, the company unveiled the second generation of its Supplier Domain Program, through which the company plans its infrastructure and selects vendors to supply its parts.

In the new phase, called Domain 2.0, AT&T plans to use SDN and NFV to cut costs and offer new services more quickly.

SDN separates the control plane that governs a network from the forwarding plane that sends packets through it. NFV removes the processes underlying network services from specialized hardware devices and turns them into pure software that can run on less expensive generic computing platforms.

"The hardware is a commodity-priced product and the software is where all the intelligence is," Stephenson said. AT&T is already virtualizing its own data centers and wants to extend the process to its core network, he said.

The new approaches should help the carrier create new services and applications, generate revenue from them more quickly and deliver high performance, security and reliability on the network, AT&T said.

Both are fairly new, with standards and APIs (application programming interfaces) still emerging. But in a press release that gave few details, AT&T laid down a firm commitment to implement them and said it would start selecting vendors and signing deals for Domain 2.0 later this year and through next year.

"Over the next five years, you will see a virtualization of the network," Stephenson said.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Strip club sues Oracle over unpaid $33,540 tab

A San Francisco strip club has filed a lawsuit against Oracle, alleging an employee of the software giant didn't pay a US$33,540 bill run up over two days last year.

The New Century Theater filed suit on Sept. 3 in San Francisco County Superior Court. Oracle has 30 days to respond from the day it is served legal papers.

The lawsuit alleges an American Express corporate credit card in the name of Oracle/Iberica was used by Jose Manuel Gomez Sanchez for $16,490 in charges on Oct. 2, 2012, and for $17,050 worth of charges on Oct. 4, 2012.

"Mr. Sanchez signed for each of these charges in which the cardholder was in fact Oracle," the suit alleged.

Oracle, which is hosting its annual OpenWorld conference in San Francisco this week, declined to comment.

The New Century Theater, which is owned by the Nevada limited liability company Bijou-Century LLC, is on 816 Larkin Street in San Francisco. Oracle held its previous OpenWorld conference at the Moscone Center from Sept. 30 to Oct. 4, 2012.

Strip clubs in San Francisco often try to drum up business by courting attendees of big conventions, standing outside conferences and handing out coupons for free entry and drinks.

The lawsuit's "Exhibit B" includes photocopies of the charge receipts, which have a thumbprint. The receipts show purchases of "Century Dollars," which can be used for "club dances performed by entertainers," according to the club. New Century Theater guests are required to show a valid photo ID that matches their credit card before purchasing the credits.

Sanchez is alleged to have used his driver's license in order to use the American Express card, the lawsuit says.

Exhibit B also includes notification from American Express to the New Century Theater showing that the charges were contested. The club was hit with several chargebacks, the term for when a merchant is denied payment due to a dispute by a customer.

David J. Cook, attorney for the New Century Theater, said late Tuesday he could not comment on the lawsuit. The suit seeks $33,540 plus interest.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk

Indian biometric ID project faces court hurdle

A controversial biometric project in India, which could require people to produce their biometric IDs to collect government subsidies, has received a significant setback from the country's Supreme Court.

The court ruled this week in an interim order that people cannot be required to have the controversial Aadhaar identification to collect state subsidies, even as the Unique Identification Authority of India (UIDAI), the government agency that manages the project, has been trying to promote the Aadhaar number as proof of identity for a variety of services including banking.

The UIDAI has said that the scheme is voluntary, but some states and agencies have attempted to link the identification to the implementation of programs such as cash subsidies for cooking gas that benefit even the middle and richer classes.

"I signed up for Aadhaar only to ensure that I continue to get a gas cylinder at reasonable rates," said an executive in Bangalore who had queued up a few months ago for an Aadhaar number. The state of Maharashtra, for example, aims to be the first state in the country to roll out Aadhaar-linked subsidy transfers to LPG (liquified petroleum gas) consumers across all the districts in the state.

Pending a final order, the court ruled that "....no person should suffer for not getting the Adhaar card inspite of the fact that some authority had issued a circular making it mandatory...."

UIDAI Chairman Nandan Nilekani did not immediately agree to discuss the court order.

The Aadhaar project is the result of an executive order, and is not backed by a law passed by India's Parliament, so its legality can be in question, said Pavan Duggal, a cyberlaw expert who practices before India's Supreme Court. The project could be in violation of the country's Information Technology Act and rules which cover collection, handling and processing of sensitive personal data, he added.

Aadhaar, though said to be voluntary, could also be in violation of fundamental rights of the Indian constitution relating to right to life and privacy, as a perception is being created that the ID will be required for subsidies and benefits, Duggal added.

The government should have considered getting an enabling law passed by Parliament for the data collection as also a strong privacy law to prevent misuse of Aadhaar related data and collation of multiple databases using Aadhaar, because of the privacy issues involved and its implications on fundamental rights, said Pranesh Prakash, Policy Director at the Centre for Internet and Society in Bangalore.

The biometric project, which collects 10 fingerprints, iris scan and other information such as name, date of birth and address, has been criticized by a number of privacy groups who worry that the data could at some point be misused by the government. There is also a risk that such large databases could be hacked, putting at risk information of people. It is not clear what are the measures taken by UIDAI to protect the authenticity and correctness of the biometric information, and prevent access by foreign powers, Duggal said.

The Aadhaar number now allows different agencies including private organizations to collect and exchange data between them, which may be useful to marketers, for example, Prakash said. Previously, it wasn't practical as the agencies would have difficulty ensuring that the information was about the same person, he added.

The Supreme Court has also ruled that illegal immigrants should not be enrolled under the Aadhaar program, which is meant to facilitate subsidized services to Indian citizens. The Aadhaar, which does not collect citizenship information, is likely to be misused by illegal migrants, activists have said.

One of the many challenges facing the Aadhaar program is that village-level politicians and influence peddlers cook up data to enroll under subsidy schemes people who are not eligible for benefits, or people who are nonexistent. The traditional paper ration card scheme and voter rolls are usually stuffed with nonexistent people or people who do not typically qualify for benefits.

Aadhaar was expected to remove these discrepancies by more accurate collection of data on people who enrolled under the scheme. But a number of users have complained that the Aadhaar cards they have received have errors in their names, addresses and other details. One newspaper reported that an Aadhaar applicant received a card that had the face of a dog in place of his photograph.

UIDAI aims to provide 600 million Aadhaar numbers to residents by 2014.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Enterasys takes aim at Cisco through Extreme Networks acquisition

Enterasys – a US networking company that makes routers, switches, Wi-Fi gateways, security and management software – is aiming to take on networking goliath Cisco through its acquisition with Extreme Networks.

Enterasys provides connectivity to places that have a large number of devices using the same network, such as sports stadiums, universities and hospitals. 

The merger, announced September 12, will help Enterasys to bulk up and compete more directly with larger networking companies, according to the company’s CEO, Chris Crowell, who believes that the firm is currently the sixth or seventh largest enterprise network vendor in the world.

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"This truly is a merger as opposed to an acquisition. It’s to try to get the best of the best and really build the number three or number four competitor in the marketplace to compete with the number one, which is Cisco,” he said at the company’s headquarters in Salem, New Hampshire, this week. 

"We compete against Cisco every day as a smaller player at the moment but in the future, as a number four player, it would be much more to our advantage."

The Enterasys leader claimed that business is booming at the moment as a result of the Internet of Things phenomeon, which involves an increasing number of internet-compatible devices connecting to networks with limited bandwidths.

The firm's key customers include Toyota, the US Department of Defense, and the University of Southern California, in addition to two American football teams, the New England Patriots and the Philadelphia Eagles, who have both deployed Enterasys OneFabric Wi-Fi in their stadiums, which can each accommodate nearly 70,000 people. 

However, Crowell said that the size of a networking company is important in order to secure certain customers and claimed that was one of the main reasons for going ahead with the acquisition. 

"It’s important to have a critical mass in this market," he said. "There’s a barrier to entry and you have to get to a certain point or you can’t even get into it. As we come together [with Extreme Networks] we’ll get leverage in R&D, marketing and sales, logistics and the supply chain."

Under the $180 million (£112 million) deal, which should close mid-November, the New Hampshire-headquartered firm’s 900 employees will work alongside Extreme Networks’ 1,000 plus workforce.

The two companies plan to combine their product and technology roadmaps and ultimately integrate the Extreme Network's ExtremeXOS network operating system with Enterasys' products over the next two years. 

Enterasys chief customer officer Vala Afshar said the deal would enable Enterasys to "double customers, revenue, and talent pool." 

More than half of Enterasys’ business comes from the US but Crowell said the European market, which currently accounts for 35 percent of the the company's revenue, is growing as the company brings on more customers in the region. Crowell was less interested in the Chinese market, saying, "We do very little business in China and we’re not looking to build our business there."