Microsoft: Gates’ $258M Grant for Malaria

Bill and Melinda Gates Foundation donates funds for malaria-related initiatives.
By Priya Ganapati
October 31, 2005

The Bill and Melinda Gates Foundation will give $258.3 million for the development of a malaria vaccine, drugs, and research to combat the disease that kills more than 1 million people worldwide every year, mostly children in Africa.

The latest grants bring the total spending on malaria-related initiatives by the Gates Foundation to about $718 million since its inception in 1998, the foundation said Monday. Two of the grants will be spent over five years and the third will be disbursed over six years.

The grants will cement the Gates Foundation’s position as one of the leaders in the fight against malaria.

Global funding in 2004 for malaria research and development totaled $323 million, according to a study by the Malaria R&D Alliance, an international coalition of malaria research groups. The U.S. National Institute of Allergy and Infectious Diseases and the Gates Foundation accounted for 49 percent.

The U.S. government invested $129 million in 2004, which comprised 70 percent of total public-sector support for the disease worldwide and almost 40 percent of the total investment.

Malaria represents just 0.3 percent of total health-related R&D spending. This is not proportionate to the havoc caused by malaria, which accounts for 3.1 percent of the global disease-related burden, the organization said.

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Microsoft’s Korea Threat

Software maker may pull Windows out of the Korean market over an antitrust case.
By Priya Ganapati
October 28, 2005

Microsoft said it may have to pull Windows out of the South Korean market if it receives an unfavorable ruling from a Korean agency investigating complaints the software giant breached the country’s antitrust laws.

The Korean Fair Trade Commission has been investigating whether the inclusion of streaming media technology or instant messenger in Windows violates Korean law. Microsoft’s decision to include Windows Media Services as an optional component of Windows Server is also under investigation.

In a filing to the U.S. Securities Exchange Commission on Thursday evening, Microsoft said, “If the KFTC enters an order requiring Microsoft to remove code or redesign Windows uniquely for the Korean market, it might be necessary to withdraw Windows from the Korean market or delay offering new versions in Korea unless the remedial order is stayed or overturned on appeal.”

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Microsoft Outlook Irks Street

Software maker’s results narrowly beat expectations, but its stock falls after Redmond lowers its sales forecast.
By Priya Ganapati
October 27, 2005

Microsoft said Thursday its first-quarter earnings rose 24 percent, narrowly beating expectations, but the software giant’s stock fell after disappointing guidance for the current quarter.

Net income rose to $3.14 billion, or $0.29 per share, from $2.53 billion, or $0.23, in the year-ago quarter. The 2005 results included a $0.02-per-share charge for the RealNetworks settlement while 2004 results included a charge of $0.03 per share to settle a dispute with Novell.

But analysts were disappointed with the guidance the company issued for the current quarter. For the second quarter ending December 31, Microsoft sees earnings per share in the range of $0.32 to $0.33 on revenue in the range of $11.9 billion to $12 billion. This fell far short of analyst expectations of $0.35 per share, according to Thomsom Financial.

The results came out after the market closed, but Microsoft shares fell $0.36 to $24.49 in after-hours trading.

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Security: Zotob Cost $97K per Company

The worm that struck in August was classified as a low risk but infected businesses had to pay a big price.
By Priya Ganapati
October 27, 2005

The Zotob worm that crippled corporate computer networks in mid-August cost infected businesses an average of $97,000 to clean up, but its impact was milder than the Slammer or Sasser worm outbreaks, a security software company said Thursday.

Some 61 percent of the organizations hit by Zotob reported that cleaning their systems required more than 80 hours of work, Cybertrust said. The healthcare industry experienced the greatest Zotob impact with 26 percent of companies experiencing problems from Zotob, compared to 7 percent of financial institutions.

Cybertrust surveyed 700 companies about the Zotob worm’s impact.

The financial losses caused by the Zotob worm and its impact on businesses, rather than on home users, revealed a new trend. Zotob heralded the rise of the “business worm,” with security threats aimed at businesses rather than at individual users, experts said. What’s more, these new worms are often driven by a strong motivation of financial gain

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VeriSign Buys Retail Solutions

The $24-million acquisition is expected to help VeriSign gain a foothold in the supply chain management business.
By Priya Ganapati
October 26, 2005

VeriSign said Wednesday it will pay $24 million to acquire Retail Solutions, a company that provides point-of-sale data about products, giving the infrastructure services company a foothold in the supply chain management business.

The deal marks VeriSign’s third acquisition in a month.

Lincoln, Rhode Island-based Retail Solutions specializes in operational point-of-sale data which gives detailed information about products sold through retailers. That information, when combined with data forecasting demand and identification technologies like RFID [Radio Frequency Identification], is designed to help retailers better manage their inventory. It is also expected to help increase sales and reduce costs.

VeriSign may be happy with its latest acquisition but it has left analysts like Richard Williams puzzled.

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Internet: VeriSign Settles with ICANN

The settlement is likely to raise the price of domain names though impact on users will be minimal.
By Priya Ganapati
October 25, 2005

VeriSign has agreed to settle a dispute with the Internet’s oversight agency that will allow the domain registrar and security company to retain its control over the .com and .net registry till 2012.

VeriSign sued the Internet Corporation for Assigned Names and Numbers in 2004, alleging the non-profit was interfering with the company’s ability to do business.

The settlement, announced late Monday, is also expected to increase prices of the .com domain lease by 7 percent and add at least $40 million in revenue for VeriSign in 2007, analysts said.

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Feds Want Better Net Security

A directive from federal banking regulators is expected to boost the market for two-factor authentication products.
By Priya Ganapati
October 21, 2005

For security startups in the business of offering authentication solutions, a recently issued letter by a U.S. government agency urging banks to take greater measures to protect online customers could result in a big boost in business.

The Federal Financial Institutions Examination Council recently sent a letter to banks asking them to use a more demanding identification system known as two-factor authentication.

The directive could mean big business for security startups serving financial institutions, executives said.

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Microsoft: Redmond's $1.2M IT Fund

Microsoft creates fund to spread IT in the developing world.
By Priya Ganapati
October 20, 2005

Microsoft has created a $1.2-million fund to help academic researchers tackle technology challenges related to improving health, education, and socioeconomic conditions, the company said Thursday.

Called the Digital Inclusion funding opportunity, the initiative is intended to reach people who have little or no access to technology, especially in developing countries. It is part of Microsoft Research, a computer research organization created by the Redmond giant in 1991.

Microsoft Research will call for proposals from researchers to explore how technologies such as mobile devices, cellular phones, and networking can make computing more affordable and accessible.

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Internet: Firefox Marks 100 Million Downloads

The milestone solidifies the position of the No. 2 browser after Internet Explorer
By Priya Ganapati
October 20, 2005

In less than a year after its launch, the Firefox browser has already clocked 100 million downloads, browser development officials said Thursday, marking a milestone that solidifies Firefox’s No. 2 position after Microsoft’s dominant Internet Explorer.

Firefox, which launched in November 2004, has now logged more than 45 million users, said the Mozilla Foundation, the non-profit group that oversees the browser’s development. That gives Firefox a 7.6 percent share of the browser market, according to September figures from Net Applications, a very distant second to IE’s 86.9 percent share.

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Security: Printers Sport Hidden Codes

The Electronic Frontier Foundation alleges some color printers can help track consumer information through hidden codes.
By Priya Ganapati
Oct 18, 2005

The Electronic Frontier Foundation, a consumer privacy and digital rights organization, alleged Tuesday that there are codes embedded in printouts made by some color laser printers that can be used to track the origin of a printed document.

The codes are ostensibly a part of anti-counterfeiting measures developed by government agencies to curb the creation of fake currency but could have serious implications for consumer privacy, according to privacy advocates.

A Secret Service spokesperson, Jonathan Cherry, said the organization does work with other government agencies and “industry partners on preventive technological countermeasures designed to discourage the illegal use of printers and copiers in the production of counterfeit currencies.”

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Security: FBI Thwarts Spam Tycoon

Authorities cripple the operations of a man alleged to be the world’s biggest spammer.
By Priya Ganapati
October 17, 2005

The FBI’s probe of a man purported to be the world’s biggest spammer demonstrates the seriousness with which law enforcement agencies are cracking down on spam, online security experts said Monday.

The FBI raided both the Detroit home of Alan M. Ralsky and the home of his son-in-law, Scott Bradley, seeking evidence he violated the CAN-SPAM act, which establishes the rules for sending out commercial email.

Authorities seized computers, servers, disks, and financial records as part of the raid, said Philip Kushner, an attorney who represents Mr. Ralsky. “The raid has had the effect of preventing him from doing business,” said Mr. Kushner.

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Security: Symantec Ups Software Prices

Hike could boost maker of popular Norton AntiVirus software’s bottom line, help counter rivals like McAfee.
By Priya Ganapati
October 13, 2005

Symantec has raised the price for renewing its popular Norton security software used on some 40 million computers around the world in a move that could net the company about $300 million in additional revenue, analysts said Thursday.

Symantec hiked the renewal price for its flagship Norton AntiVirus software 20 percent to $29.99 from $24.99. Meanwhile, the price to renew its Norton Internet Security is rising 34 percent to $39.99 from $29.95. This software includes a firewall and anti-spam protection. The renewals are good for one year.

The Cupertino, California-based security giant said the price hike is just one of the changes it’s making to its current subscription model. Among the changes, it will now deliver product updates throughout the year. A subscription to the Norton suite would ensure users not only get the most updated protection against existing viruses or worms but also feature updates ensuring their products remain current.

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Security: U.S. Tops Spammers List

But legal and legislative measures to stop unsolicited email seem to be having impact.
By Priya Ganapati
October 12, 2005

Despite legislative and legal pressure, the United States remains the world’s worst offender when it comes to the origin of spam, though South Korea and China are fast catching up, a software security company said Wednesday.

To identify the top 12 countries where span originates, London-based enterprise security software company Sophos looked at spam messages received in its network of spam traps.

The U.S. was responsible for 26.5 percent of the all spam trapped in Sophos’ networks between April and September 2005.

Still, there is some good news: this is significantly lower than the 41.5 percent chalked up during the same period last year.

South Korea ranked No. 2 on the list with a share of 19.73 percent of all spam. Meanwhile, China ranked No. 3 with 15.7 percent. But the Middle Kingdom nearly doubled its share in the spamming market.

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Security: Virus Targets Nintendo DS

Gaming systems are becoming the new targets of malicious Trojan viruses.
By Priya Ganapati
October 11, 2005

A Trojan virus disguised as a program that supposedly loads X-rated material is preying on the Nintendo DS handheld game console, security experts said Tuesday, making it the second security hazard to hit gamers in two weeks.

The malicious Trojan comes disguised as a program that promises to load “hentai,” a Japanese term for pornographic comics, cartoons, and games, onto the Nintendo DS. Once downloaded and run, the Trojan can delete system files in the gaming console and make it impossible to boot up, rendering it useless, security experts warned.

“These Trojans get onto a gaming system in the same way that malicious applications get onto a PC,” said Shane Coursen, senior technical consultant for Kaspersky Lab, a security software firm. “If an application has an underlying code that acts as a Trojan or virus, it can damage gaming systems if installed on it.”

So far, there are no clear numbers on how many gamers were infected as few victims report the infections. But the rate of infection is likely to be very low, said Dean Turner, senior manager of development at Symantec Security Response.

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Microsoft Draws E.U. Scrutiny

The European Union has asked Symantec for info following Redmond's move into security.
By Priya Ganapati
October 7, 2005

The European Union has requested information from security software maker Symantec to determine whether Microsoft’s recently announced security products may violate any antitrust regulations, analysts said Friday.

Symantec, the maker of the popular Norton antivirus software, said Friday it has responded to the E.U.’s request for information but denied that the company had lodged a formal complaint with the E.U. The discussions with the E.U. were in response to its queries, said Symantec spokesperson Genevieve Haldeman.

“As we’ve said in the past, we will compete with Microsoft in the markets, not in the courts, as long as there is a level playing field,” she said.

This is not the first time Microsoft’s actions have raised eyebrows among E.U. officials. Last year, Microsoft incurred the E.U.’s wrath after bundling its Windows media player with the company’s operating systems, which the E.U. said stifled competition. Microsoft was fined $613 million, the highest ever in any European competition case.

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Software: Senior Adobe Execs to Leave

Adobe shakes up its management in the midst of its merger with Macromedia.
By Priya Ganapati
October 6, 2005

As Adobe inches closer to completing its acquisition of Macromedia the company said three senior Adobe executives will leave the company by the end of the year as five Macromedia execs come on board.

Those leaving include Adobe’s senior vice president of human resources, Theresa Townsley, Digital Imaging Chief Bryan Lamkin, and Ivan Koon, senior vice president of the intelligent documents business unit.

The announcement reflects a changing power structure within Adobe as it prepares to complete the merger. “It looks like the Macromedia people are dominating the integration process,” said Samuel Saunders, an analyst with Fulcrum Global Partners, a securities firm based in New York City.

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Security: $100M Investment for Viisage

VC firm L-1 invests the money to help the identity authentication and biometrics specialist make acquisitions.
By Priya Ganapati
October 6, 2005

Identity authentication and biometrics specialist Viisage said Thursday venture capital firm L-1 Investment Partners will invest $100 million to help it make acquisitions, sending its stock up 40 percent.

Under the agreement, Stamford, Connecticut-based L-1 will buy 19 million newly issued shares of Viisage at $5.25 per share.

The news sent the company’s stock soaring on the stock market. Viisage shares rose $1.42, or 40 percent, on the Nasdaq to close at $5.06.

Viisage will initiate a one-for-two-and-a-half reverse stock split. Post-split, L-1 is expected to control 28 percent of the company. Based in Billerica, Massachusetts, Viisage has more than 200 employees.

Viisage expects to close the transaction by the end of 2005.

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Security: Hackers Attack Mozilla Site

The outfit that runs the popular Firefox browser sees its community marketing site get hacked again.
By Priya Ganapati
October 4, 2005

Mozilla Foundation, the group that runs the second-most-popular web browser after Microsoft’s Internet Explorer, said Tuesday that hackers broke into its marketing site where users can download the Firefox browser and discuss ideas on how to promote it.

It is the second time in less than three months that the community marketing site, Spread Firefox, has been hacked. The server hosting the community site had been accessed by unknown remote attackers who attempted to exploit a vulnerability in it, said Mozilla.

The attack was limited to SpreadFirefox.com and did not affect the outfit’s main mozilla.org web sites or Mozilla software, Mozilla said in a note to users.

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Security: Symantec to Buy BindView

Security software giant tries to get firmer hold in compliance security segment.
By Priya Ganapati
October 3, 2005

Symantec continued its acquisition spree on Monday with the $209-million buyout of BindView, a security compliance firm.

The deal comes barely two weeks after Symantec’s last acquisition and is the company’s third acquisition in as many months.

The all-cash transaction valued BindView at $4 per share, a 14 percent premium over Friday’s price, and is expected to be completed in the first quarter of 2006. BindView shares rose $0.37 to $3.87 in recent trading. Symantec shares climbed $0.34 to $23.00.

BindView focuses on the fast-growing area of compliance-related security. Companies are required to keep up with regulations imposed by the Sarbanes Oxley Act, HIPAA, and Federal Information Security Management Act, among others. Firms like BindView help them cover vulnerabilities, protect information, and provide secure access.

Founded in 1990, BindView had its initial public offering on Nasdaq in 1998. In 2004, it clocked revenue of $72.9 million from over 5,000 customers including many mid-sized companies across major industries. The Houston, Texas-based company has 550 employees worldwide.

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