Security: AT&T Computer Systems Hacked

AT&T revealed late Tuesday that a weekend assault on its systems by hackers had led to the loss of personal data including credit card information of several thousand customers who had purchased DSL equipment through the company's online store.

Hackers broke into AT&T’s systems, but the company discovered the breach only hours later. AT&T then shut down its online store and notified the major credit card companies whose customer accounts were involved, the company said.

Some 19,000 customers were affected. AT&T has now notifying them by email, phone, letter, it said. It will also pay for credit-monitoring services to assist in protecting the customers involved.

More at Red Herring Online

Security: AOL's Spyware Gaffe

After a consumer protection initiative named AOL’s free client software to its “Badware Watch List” for exhibiting some characteristics found in spyware products, the Internet giant will make changes to its next version of its software, scheduled to release in a few months.

AOL said it will make the changes to its products to better inform users of the programs the software installs on their computers.

The news comes less than two weeks after the company in a massive breach of privacy released search queries from more than 600,000 users made over three months this year

More at Red Herring Online

Collaboration: Blogs Start Job Boards

The next wave after blogs targeted at particular interest may be niche job sites.

On Friday, GigaOm, the blogging network started by former Business 2.0 writer Om Malik, launched its own job board. The board, which charges $200 per listing, plans to make itself the destination for job listings from telecommunications, broadband, and networking companies, particularly for positions at the managerial levels.

Since its launch this weekend, the site has attracted 11 listings.

“What we bring to the table is a bit of focus to the job search,” said Om Malik, founder of Giga Omni Media. “A lot of telecom, networking, and broadband kind of people read the blog, so we want to bring together the right reader to the right employer.”

GigaOm Jobs is the fifth niche job site to come from a blogger. Earlier this month, TechCrunch, the wildly popular web 2.0-focused blog run by Michael Arrington, launched its job site, CrunchBoard.

Other job sites include 37 Signals, a Chicago-based startup that kicked off its job site in April; Alarm:Clock, a blog that covers startups; and Paid Content, one of the earliest blogs to focus on media and content.

More at Red Herring Online

Collaboration: Riding the Wiki Wave

Riding the Wiki Wave
Magazine News Story/Aug 28, 2006

How many millions does it take to make a bubble? Don’t ask John Gotts. He just paid $3 million for the domain name wiki.com.

Mr. Gotts, an entrepreneur with a history of buying speculative domain names, says it was money well-spent. “Good domains allow you to have highly targeted traffic coming to your web site with no ad or marketing costs,” he says.

Wiki.com, which has been up for sale for nearly a year, offers the tools for anyone to create a wiki, a type of web site that facilitates collaborative authoring. “Clearly the future is wikis,” he says. “But there is no place for a grandma or small business to create a space of their own on the web where they can put up their information or content and give access to others.”

Mr. Gotts is no ordinary speculator. A few years ago, he made his millions selling an anti-spyware product, PCSafe, which took off only after he bought the domain, adware.com, and hosted the product on it, he says.

Similarly, the wiki.com domain could be a sure way to attract users. Mr. Gotts declined to reveal how many users currently visit the web site, but according to traffic rankings site Alexa, traffic to market leader JotSpot far outstrips that to wiki.com. Moreover, JotSpot charges for its tools while wiki.com gives them away for free.

A market consolidation could be looming, says Peter O’Kelly, research director at the Burton Group. In addition to proprietary wiki tools from startups, open-source wiki products have also emerged in the market, and there is bound to be a shakedown, he says.

Mr. Gott’s move is likely to be unsettling news for startups like JotSpot, PBwiki, Wikia, and SocialText, which sell wiki products to consumers and businesses. “If I were a vendor, I would be apprehensive that the hype-to-reality index is getting out of control,” says Mr. O’Kelly, in reference to the frothy wiki market.

Microsoft, HP to Chase Security?

Publicly listed mid-cap security companies had better watch out.

IBM’s $1.3-billion of acquisition of Internet Security Systems earlier this week is likely to spark a race among large IT players to add a strong security component to their line of products, setting off a frenzy of mergers and acquisitions in the space. Their targets? Security companies with between $200 million and $700 million in market capitalization and a rocky performance on the stock market in the last few months. More such deals could be on the way, said experts. Mid-tier pure-play security companies are likely to be snapped up by larger players that want to round off their portfolios.

Wall Street seems to be betting on it. Shares of ISS went up roughly 40 percent after the EMC-RSA buy.

More at Red Herring Online

Microsoft Bets on Telephony

Microsoft wants to dominate the telephony market with software products that will bring together its existing email applications and integrate them with voice and video management products, said Anoop Gupta, vice president of Microsoft’s unified communications group, in a keynote address Tuesday at the VoiceCon Fall conference in San Francisco.

The company’s goal is to give users a single Microsoft platform for all their communication needs, including email, telephony, and videoconferencing. The biggest target will be the IP-PBX (Internet protocol private branch exchange).

Microsoft’s interest in the communications market stems from the huge opportunity it sees. The company estimates spending on voice, video, and email communications totals at least $40 billion a year.

More at Red Herring Online

Microsoft Files Domain Suits

Microsoft trained its legal guns with accusations against cybersquatters Tuesday, saying it has filed three lawsuits to stifle attempts to profit from domain names that contain the company’s trademarked terms.

Microsoft alleges that cybersquatters, or typosquatters, have registered thousands of domain names targeting Microsoft in a bid to mislead users and make thousands of dollars by serving text ads along the way.

On an average day more than 2,000 domain names are registered that contain Microsoft trademark terms, the company estimates. Of those, at least 75 percent are owned by what are believed to be professional domain name holding operations.

The lawsuits, the first federal action by Microsoft against so-called domain squatters, have been filed under the 1999 Anticybersquatting Consumer Protection Act.

More at Red Herring Online

Internet: Click-Free Web Surfing with Browster

Magazine News Story/Aug 21, 2006

How far will you go to find more friends on MySpace? San Francisco startup Browster is betting that MySpace fiends will do anything, even change the way they browse.

The company is to announce this week a deal with the web’s biggest social networking site to provide a customized version of its free software, a browser plug-in. The plug-in reduces the need to click by showing a preview window with search results when users move their cursor over a link. The idea, says Browster CEO Scott Milener, is to eliminate the need to use the browser’s Back and Forward buttons. “We are bringing MySpace users more picks, filtering it, and making their search results more secure,” says Mr. Milener.

While Internet users are getting more sophisticated, browsers have stagnated. Popular browsers like Internet Explorer, Netscape, and Opera still have the look, buttons, and functionality of 10 years ago, says Mr. Milener. Although what users can do on the Internet has changed dramatically, the way they do it has pretty much remained the same.

Startups like Flock, Tablane, and Maxthon have launched their own browsers, which they say will speed up web navigation. Browster is following that trend, says Ed Birss, general partner with Advanced Technology Ventures, one of Browster’s investors. In January, Browster raised $5.8 million in its first round of funding from Advanced Technology Ventures, Vanguard Ventures, and First Round Capital. So far, 600,000 users have downloaded the Browster tool.

Creating a customized version for MySpace is a risk that could pay off big. MySpace users have a reputation for being among the first to try new ideas and for spreading it virally. “The MySpace crowd is huge and very vocal,” Mr. Milener says. “If it takes off there, this idea could spread like wildfire.”

Magazine: Q&A: Linus Torvalds

If open source were a religion, Linus Torvalds, the Finnish engineer who wrote the core of the operating system that would become Linux, would be its prophet.

In 1991, Mr. Torvalds created the kernel, or core software, that would eventually be adopted by millions of computer users and lay the foundation for a vibrant open-source community.

Fifteen years later, Mr. Torvalds, after whom the Linux system is named, wears his crown lightly. He lives in Portland, Oregon, out of Silicon Valley’s spotlight, and has often expressed his dislike for the cult-like worship by open-source enthusiasts.

Three years ago, Mr. Torvalds, 37, joined the Open Source Development Lab, a consortium that promotes the adoption of Linux, where he now oversees development of the system.

In an email interview with Red Herring, Mr. Torvalds says the increasing focus of venture capitalists and large companies on open source can only be good for a community that, until now, was on the fringes of the commercial realm.

More at Red Herring

Security: Hackers Stay off MySpace

MySpace may be teeming with sexual predators, scammers, and married men pretending to be sweet 16-year-olds.

But there’s one less class of creep to worry about. Security experts said that cyber-criminals are showing little interest in attacking the web’s most popular social networking site.

Despite its uber-popularity among young Internet users, MySpace has been relatively low on the radar of hackers because it offers little financial gain, said experts.

“MySpace is not as attractive to criminals as, say, targeting PayPal or eBay which is where 75 percent of the phishing attacks at the moment are directed,” said Graham Cluley, senior technology consultant with the security firm Sophos.

More at Red Herring Online

Collaboration: Q&A: $3 Million for Wiki.com!?

The tech bubble is back—at least when it comes to wikis.

John Gotts bought the wiki.com domain name for $3 million last week. Wiki.com had a For Sale sign hanging on it for nearly a year before Mr. Gotts decided to buy it. The wiki.com URL could be a goldmine when it comes to attracting users, Mr. Gotts believes.

RedHerring.com recently caught up with Mr. Gotts to check his level of buyer’s remorse.

Software: Motorola Hones Linux Strategy

Cell phone giant Motorola said Tuesday it plans to power its midrange mobile phones with the Linux operating system in a bid to penetrate the price-sensitive North American and European markets and offer consumers a greater choice of smartphones.

Motorola, which embarked on its open-source strategy for mobile phones six years ago, has been successful in introducing Linux-powered phones in Asia, especially China

, but the company has faced a much tougher time in breaking into the United States and Europe with these phones.

So far, Motorola has shipped 5 million Linux-powered phones, almost completely in Asia. The Schaumburg, Illinois-based company’s Ming A1200 Linux phone has been rated the market leader in the smartphones category in China.

More at Red Herring Online

Security: I Spy with Muni WiFi

As free public Wi-Fi networks go live, one unlikely community will be waiting to log in: cyber criminals.

Municipal and public Wi-Fi networks could become a breeding ground for crooks looking to steal information from individual users and big companies alike.

Mischief makers won’t have to wait long. This month, search giant Google started testing its free wireless Internet service in Mountain View, California. That news comes as a number of cities including San Francisco, New York, Philadelphia, and Toronto have announced plans to create municipal, or “muni,” Wi-Fi networks.

The free public networks will carpet cities with free Internet connectivity. By 2007, cities in the United States will spend $405.6 million on wireless networks, up from 76.5 million in 2005, according to projections by the research firm MuniWireless.

More at Red Herring Online

Got Laptop Security?

Restrictions around carry-on baggage items at airports may have been relaxed a little, but some security companies said Monday they are betting on increased demand for products that can protect electronic devices such as laptops and PDAs during air travel.

Products such as asset-tracking software for laptops, rugged carrying cases for electronic devices, stickers, locks, and anti-theft tags could find increased favor among travelers, some of whom may be forced to check in their gadgets.

Until Monday, travelers out of the United Kingdom

had to check in all luggage. Britain has now said it has relaxed a ban on airline cabin baggage and scaled down a security alert that was put in place last week after a plot to blow up airliners was discovered and foiled.

More at Red Herring Online

Internet: She-Blogs

Magazine News Story/Aug 14, 2006

Hugs, kisses, and finely manicured feet were in abundance at Silicon Valley’s latest technology conference. But the 700-plus mostly female attendees of the second annual BlogHer conference weren’t there just to socialize. Major advertisers like General Motors, Yahoo and Johnson & Johnson were watching closely, eager to tap into a potentially big marketing opportunity. “This is probably the most important women’s media network,” says Elisa Camahort, president of events and marketing for BlogHer.

Indeed, 46 percent of bloggers in the United States are women, according to a survey by the Pew Internet & American Life Project last month. “While women still aren’t writing and reading blogs as often as men, we’re catching up, especially when it comes to reading blogs at least weekly,” Charlene Li, an analyst with Forrester Research, wrote recently in her blog. The number of attendees at this year’s BlogHer conference, held in San Jose, California on July 28-29, more than doubled over last year.

BlogHer is hoping to leverage those numbers to transform itself into a powerful online presence. The site’s 4,000 bloggers post on topics ranging from health, food and drink, religion and spirituality, to “mommy & family.” The Palo, Alto, California-based company, founded by Ms. Camahort and her partners, Lisa Stone and Jory Des Jardins, launched an ad network for the site on June 1.

The “Mommy Bloggers,” as many of the community’s members are known, are becoming a huge draw for corporate America, says Ms. Stone. “Women control 83 percent of household spending,” she says. “Online, many of these women are having conversations about what they want to buy, what they want to read, and what they like—conversations that are difficult to find elsewhere.”

If you want to know what women really want, the BlogHer swag bag could offer clues. Among the items: a bib, a 64-MB USB JumpDrive, a fast food book, a notebook, a pen, and an Elexa condom.

Security: Symantec vs. Microsoft. Round One: Symantec

Magazine News Story/ Aug 14, 2006


When Microsoft released its desktop antivirus and data backup package, Windows Live OneCare, many figured traditional security players like Symantec and McAfee would be quashed. Three months later, the numbers indicate otherwise.

Far from hurt, the market leaders saw sales grow after OneCare hit retail shelves across the United States. In its quarterly financial results delivered on July 27, Symantec said its consumer antivirus business posted 5 percent sequential revenue growth, and that revenues of its flagship Norton Internet Security product grew 47 percent compared to the same period last year. The next day, Symantec rival McAfee said its packaged consumer software division grew 2 percent in the last quarter while revenue from online consumer services grew 7 percent.

The desktop antivirus and anti-spyware business is a huge and growing market. Gartner projects 2005 revenues of $4 billion will grow another 13.5 percent this year.

When Microsoft announced plans to enter the consumer security business last year, Wall Street made dire predictions for Symantec and McAfee. Given their latest earnings, the doomsayers may want to recast their opinions. “The fact that OneCare didn’t have an immediate impact on consumer sales lends credence to the idea that companies like Symantec are doing pretty fine,” says Richard Stiennon, founder of consulting firm IT Harvest.

OneCare received some bad reviews since its release on May 31, Mr. Stiennon notes, and Symantec CEO John Thompson wouldn’t let that opportunity slip by. “Independent reviews have put Norton Internet Security well above everyone else, and particularly strong against OneCare,” Mr. Thompson said during a call with analysts.

Of course, Microsoft has hardly been knocked out of the park. And Symantec and McAfee are both grappling with internal issues that could take their eye off the ball, if not derail growth. On August 1, Symantec Chief Technology Officer Ajei Gopal left the company to join Computer Associates. He follows a long line of executives who have exited in the last year, including the chief financial officer, chief information officer, and chief operating officer. Meanwhile, McAfee has said it will likely restate past financial results because of a review into its stock option grant practices.

While these industry veterans tend to internal matters, Microsoft might spend its time on improving OneCare, though inferior offerings haven’t stopped it from dominating many markets in the past.

Software: Matrix Invests $13.8 million in Digium

Matrix Partners dialed in a $13.8-million stake in Digium, putting in line a veteran open-source backer for the startup.

Venture capital firm Matrix was involved with the blockbuster open-source deal for Jboss, which was scooped up by Red Hat.

Digium is an open-source developer of phone systems software, with a product called Asterisk. The open-source company plans to use the funding to offer more services for businesses. Meanwhile, Digium said that it’s been profitable since 2002.

Mark Spencer, president of Digium and creator of Asterisk, said it’s not entirely about the money, that connecting with the right VC to develop the company was important.

“We wanted to find some sort of partner that would help us grow, expand into newer areas and refine our model to take advantage of what we have developed in Asterisk,” Mr. Spencer said.

More at Red Herring Online

Software: Leopard Chases Vista

Apple’s upcoming Mac OS X operating system, code-named Leopard, could lead some consumers to switch from Windows, analysts said Tuesday.

Leopard is scheduled to debut in spring 2007, only a few months after Microsoft’s long-awaited Windows Vista operating system is supposed to finally reach consumers. The timing could pit the two companies against each other in the market.

Microsoft has said it plans to release Vista to businesses in November and make it available to consumers in January, but many analysts are betting the operating system will be further delayed.

Last week, the Gartner research firm said it stood by an earlier prediction that Vista is unlikely to ship as planned by Microsoft. If it’s late once again, Vista will have to race against Apple’s Leopard, which was announced with much fanfare on Monday at Apple’s developer conference.

More at Red Herring Online

Security: AOL Leaks Search Data

In yet another case of unauthorized data leaks, search queries from more than 600,000 AOL users made over three months this year became easily available over the Internet, raising an outcry from bloggers who criticized the company for not protecting the privacy of its search engine users.

AOL had planned to make the data available only to researchers as part of an effort to help the academic community develop new search-related tools but ended up posting it on a wiki page that could be accessed by all.

Search data for roughly 658,000 anonymous users were released. AOL said there were about 20 million search records over that period, so the data included roughly a third of 1 percent of the total searches conducted through the AOL network during that period.

More at Red Herring Online

Security: US Ratifies Cybercrime Treaty

The U.S. Senate endorsed an international treaty Friday that calls for global cooperation in fighting computer-related crimes, making the United States the sixteenth of the 43 nations to have ratified the pact.

The treaty, known as the Council of Europe Convention on Cybercrime, is the first that tries to create a consensus among nations on laws to tackle crimes like hacking, fraud, child pornography, and copyright infringement.

While it is not expected to have much impact on U.S. policy on cybercrime, it is likely to help domestic agencies in their international efforts.

More at Red Herring Online

Internet: Firefox Turns Up The Heat

Mozilla said Thursday that its Firefox browser, the open-source challenger to Microsoft’s Internet Explorer, has crossed the 200-million downloads mark.

The organization also inked a deal Wednesday, along with its partner Google, to bundle its web browser along with RealNetworks’ RealPlayer, tightening the screws further against Microsoft in the increasingly competitive browser market.

RealPlayer is one of the most heavily downloaded software programs in the world, with more than a million downloads a day. When installing RealPlayer, users will now be given the option to install Firefox and the Google Toolbar.

More at Red Herring Online