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Zango caught cheating on FTC settlement – again
Zango just can't seem to leave it criminal days behind. Spyware researcher Ben Edelman today published evidence that shows that the company is still engaging in deceptive installations of its adware application.
Users who are lured in by Zango's promise of "free" games, videos and other premium content still don't get proper disclosures about the pop up advertisements that they will have to put up with.
Zango claims that Edelman is "dead wrong", stating that he used outdated copies of the Zango software that will no longer function. The company also accuses the researcher of manipulating his research by running his tests on an "archaic computer with low or outdated screen resolution".
The discussion all goes back to a legal settlement last October, when Zango agreed with the FTC to stop questionable installations of its adware application.
The adware maker at the time sent out a boastful press release in which it claimed that it was already in compliance with the new rules. It took spyware researcher Ben Edelman only a few weeks to collect evidence that nothing was further from the truth, and today he claims that is still the case.
Edelman (pictured right) and Zango may have a history together, but you have to
at least assume that the researcher has a point. If anything, Zango is
the convicted party here, and the company has a track record of bad boy behavior that goes well beyond the FTC settlement.
Zango furthermore keeps playing the "customer choice" card, mentioning the millions of users of its software.
But if its software is so intensely popular, the firm would have no problem giving up its affiliate programmes that caused all its problems. For Zango always has argued that it were unscrupulous distributors who caused illegal installations of its software. It has cut of dozens of these botnet herders and greedy website operators, but you can't weed out crime altogether.
If drug addicts cause trouble, you ban drug. If distributors cause trouble, you stop providing your products to distributors. According to Zango, users are finding its software insanely useful. Then why rely on a network of malware traffickers and underground types to distribute the software?
- A video demonstration of botnet instaling multiple adware applications is available on the Security Watchdog blog.
Microsoft: listen to our sales rep, he knows best!
Microsoft in recent weeks has been under fire for its Software Assurance program. As both Forrester and Garnter have found, enterprises don't see the value in the programme. A survey by Forrester found that 26 per cent of the enterprises is preparing to drop it for sure and only 11 per cent said that they "definitely renew" the programme.
Responding to the criticism, Microsoft's corporate vice president of worldwide licensing and pricing Joe Matz (pictured right) argued that customers would be better off if they just listened to Microsoft's sales department instead:
But we also recommend that customers rely on their Microsoft representative and local Microsoft Certified Partner for ongoing, direct and accurate information. These are the people on the ground who are able to assess an individual customer’s business situation — their existing systems, their people, their budget, their business and technology needs — and crunch the real numbers while also making sure the customer gets on the right type of volume licensing agreement.
The number crunching that Matz is referring shouldn't be confused with the saleperson's quarterly sales target. Or the company's efforts to kickstart its flat stock price by growing revenues and profits.
We couldn't agree more with the paragraph preceding Matz' praise for Microsoft's internal sales force.
"Like any other third-party source, analysts draw their own conclusions about Microsoft’s programs — which they should. The market is better off with this additional perspective and feedback that they bring.
So what is it, Mr. Matz? Should I trust analyst firms that are paid to provide independent research? Or should I trust your sales people who are paid to sell as many boxes as possible?
Comment spam made easy
If you thought that forced registration and Captcha human verification technologies solved the bulletin board spam challenge, you were wrong.
Security vendor Panda on its blog is demonstrating an application that will leave 1,500 spam comments on bulletin board in 15 minutes.
Xrumer slices through captcha verification and forced registrations – all are designed to verify that the poster is a human being rather than a spamming computer.
The $450 application offers an amazingly simple user interface. In a few clicks, the spammer creates a new email address with a free provider, sets up keywords for bulletin boards that he/she wants to target and creates the actual spam message. Xrumer takes care of all the rest: it will decipher the captha codes. If registration is required, it will await the confirmation emails 'click' the activation link and post the spam.
Xrumer only targets bulletin boards running common scripting languages such as PHP, most likely because they are easy to find. But it will only be a short stretch to imagine a similar technology getting unleashed towards blogs, and we're in comment spam hell all over again.
- No link provided to Xrumer's website - as a policy we don't link to potentially harmful applications.
Tom Siebel finds a new career as legal reformer
Having stopped just short of the top with Siebel Systems, the company's founder and former CEO Tom Siebel (pictured) is now taking a shot a legal reform.
Earlier this month, the California Supreme Court granted Tom Siebel the right to sue the lawyers from a past case against the billionaire. In July 2000 Siebel settle a suit from a disgruntled employee.
Cases like these are commonly settled to save the legal expenses and a potentially large monetary judgement and to prevent the case from distracting from everyday business. The terms of the settlement typically include a clause in which all parties waive the right to pursue any further claims.
In additional to claiming that the case was frivolous, Siebel charged that he should still be able to pursue legally the opposing lawyers – and the court agreed. Carol Middlestadt, currently a judge in San Mateo County, and Richard Buell violated ethical and legal rules in bringing the case to court, claims Siebel.
"This is a private effort at tort reform," Siebel said in a press release. "This ruling will make lawyers think twice before seeking to extort settlements from vulnerable targets by filing lawsuits they know are frivolous. Victims of frivolous litigation will now find it easier to have their day in court, bypassing what could potentially be years in the costly appeals process."
Siebel Systems pioneered customer relationship management (CRM) space after Oracle CEO Larry Ellison dismissed the idea. After a brief period of success, the company found out that there was limited demand for a stand alone CRM product. The market instead moved to suites of integrated CRM, ERP and other enterprise applications. Oracle scooped up Siebel Systems for $5.85bn in 2005.
Once hailed as a business pundit, Tom Siebel was then quickly exposed for allowing a bloated cost structure that contributed to the company running into the ground. Oracle had to manoeuvre its way out of expensive real estate leases and Siebel seem to have retreated to his estate in the millionaire's town of Woodsite in Silicon Valley (Larry Ellison lives around the block).
Salesforce.com is campaigning outside Siebel System's corporate headquarters, shortly after the acquisition by Oracle
Intel gets cornered in
At a press conference following yesterday's AMD Technology Analyst Day, the chipmaker's executive vice president of sales and marketing Henri Richard (pictured) further bemoaned Intel's atrocities.
Later that day, the European Union filed anti trust charges against Intel, adding to the firm's legal headache.
AMD alleges that Lenovo and German retail chain Media Markt are shunning AMD because Intel is essentially paying them to do so. It's for the same reason, Richard suggested, that Dell would only last year start shipping AMD desktops and servers, not because the computer maker was clueless about its customers.
Intel had the computer industry in a choke hold, charged Richard. By withholding chip shipments, it could effectively cripple their businesses. The company also held its partners on a short leash by paying out discounts only at the end of the quarter and when vendors had met certain targets. Without the discount, profits were nearly impossible.
AMD however isn't as defenceless a victim as it claims to be. When confronted by the its slipping market share in the server space, Richard countered that Intel's lead would quickly dissolve one AMD shipped its own quad core processor. He then pointed to AMD's commanding market share lead in the four-way server space (systems with four CPUs).
That isn't a big surprise however, considering the fact that Intel doesn't offer any processors for the 4-way segment. And the sweet point is still in the the 2-way market.
VMWare's $9.4bn success
Cisco today joined Intel in buying a stake in virtualization vendor VMWare. The networking giant paid $150m for 1.6 per cent of VMWare's stock.
Intel earlier this month shelled out $218.5m for a 2.5 per cent stake in the company. The chipmaker got a better deal, paying $87.4m per percentage point relative to Cisco's $93.75m per percentage point.
The Cisco deal values VMWare at $9.4bn. That for a company that logged $703.9m in sales last year.
The real winner here is EMC, which paid $635m to acquire VMWare in 2003 at about three time its annual sales. The firm is now selling off a 10 per cent stake in the company on the stock market and directly to industry partners, while maintaining a firm hold on its strategic direction.
AMD welcomes the end of Intel's advertising monopoly
AMD claims to be seeing a new result of the end of the clock speed wars, as computer manufacturers have dropped processor branding in their advertisements.
Intel in the past has spent millions of dollars to pay for advertisements by PC makers including HP, Acer and Dell, knowing that consumers would ultimately purchase Intel chips.
But at the AMD analyst day at the company's Silicon Valley headquarters, the chip maker pointed out that an increasing number of advertisements has dropped the vendor branding.
AMD's executive vice president of sales and marketing Henri Richard (pictured) went as far as to claim the end of the "monopoly tax", an obvious jab at Intel.
But to those who don't run around paranoid seeking expansive conspiracies, is could also indicate the advent of the computer as a consumer appliance that goes beyond spreadsheets and raw performance. It doesn't matter what's under the hood, looks matter.
John Chambers deflates rumours on political aspirations
Cisco chief executive reignited speculations about potential political aspirations recently when he joined John McCain's bid for the 2008 Republican presidential nomination as a technology advisor.
The networking chief has been linked to a political career before, mostly because he is a gifted speaker and has build an impressive network among government leaders as well as business executives.
But his (personal) endorsement of McCain (who is trailing in the polls behind Rudi Giuliani) doesn't signal a planned relocation to Washington. Instead, Chambers said in an interview, he is using his political activism to motivate his employees to do the same.
Add the opportunity to lobby for patent reform and other legislation, and you understand why Chambers is happy to rub shoulders with politicians.
See what Chambers has to say on the topic on vnunet.com/tv.
Cisco claims Web2.0 as corporate property
Web2.0 isn't about blogging, podcasting and other forms of information sharing. It's about collaboration, Cisco CEO John Chambers claimed at the Networkers conference in Anaheim, CA.
Speaking to a crowd of more than 10,000 networking professionals, Chambers projected that his web 2.0 will cause a second wave of internet productivity gains that will dwarf those of the late 90s.
Cisco's Web2.0 may have nothing to do with Web2.0 as the rest of the world knows it. Maybe that's why the networking giant is calling the plumbing that will enable its Web2.0 as Data Center 3.0.
Although the name is just as confusing, Data Center 3.0 refers to the era of virtualization. And particularly an era in which systems will automatically assign additional resources when a website is hit with heavy traffic, or to an application that is running a weekly data analysis.
Where middlware vendors such as BEA and IBM are looking to solve this problem through software, Cisco is looking at the network - obviously because that's where its it has its expertise. Each approach has its pros and cons, but nobody should be surprised that multiple vendors are offering multiple ways to reach the enterprise data center nirvana.
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Microsoft makes sure to set low Windows expectations
Borrowing a page from the book of Apple, Microsoft has yanked a list of user requested features for the next Windows from the Channel 9 web site.
The company provided PC World with a canned statement: "we are not giving official guidance to the public yet about the next version of Windows."
As I can personally testify, the software vendor pulls out this quote from Windows director Kevin Kutz every time a reporter asks about the next Windows version, or even about Windows Vista Service Pack 1. Microsoft PR often can be like a pull string doll: every time you pull the string, the same words will come out.
Microsoft has allegedly hidden Windows development plans behind a veil of secrecy. Perhaps the firm thinks that it can build more excitement about new product if the features stay more of a surprise. Or perhaps the firm is attempting to prevent any more embarrassing headlines when it pulls previously promised features: you can't delay what you haven't announced.
If Apple can turn its development plants into a Fort Knox to prevent information leaks, Microsoft should be able to follow suit. But hard- and software developers rely on this information to build their future product. Apple gets away with its tight-lippedness because it controls its own hardware. But outside OEMs and peripheral makers are the main source of Microsoft's success.
Besides, the published list merely provided an overview of features that users would like to see. In no way does if reflect the feature that Microsoft is looking to implement.
Intel and OLPC make a developing world U-turn
Intel has joined the board of the One Laptop per Child project.
The project and chipmaker will "bring the benefits of technology to the developing world through synergy of their respective programs", whatever that may mean.
Intel and OLPC have been in a war of words since the early days. Soon after OLPC chaiman Nicolas Negroponte unveiled his laptop project, Intel pieced together the Eduwise notebook computer. Where the first is intended as a revolutionary education tool that happens to be a notebook computer powered by AMD, Intel's is a cheap notebook computer that happens to come from the world's biggest chip maker.
If there is a grand educational vision behind Intel's design, the company has hidden it very well. OLPC seems to have done the same with any paying customers for OLPC, which has missed its original shipping deadline.
Intel no doubt wants to see its chips in the OLPC. But even without an Intel OLPC, the chipmaker should expect that it will gain its fair share of the developing world market when graduating OLPC students upgrade to real computers.
More importantly, OLPC needs Intel's relations with distributors and Intel needs OLPC's technical innovations. Everybody wins here. Well, maybe except Microsoft.
Vnunet evolves
The former chief executive Dominique Busso of the old Vnunet has bought out the French, German, Spanish and Italian parts of network. The sites will continue operations under the NetMediaEurope banner.
The deal doesn't include Vnunet in the UK, The Netherlands or Belgium. VNU UK, which published this blog, was acquired by Incisive Media last February.
The individual owners will continue to operate shared brands. In addition to Vnunet, there include the European Gizmodo and the Inquirer websites (The Netherlands canned its Inq site earlier this month, but never seemed to put any effort behind it anyway).
In case you're wondering what all this will mean for Vnunet.com and our blogs? Very little. We've been working very hard with Incisive to continue our operations and embrace new media in any way that we deem useful.
Microsoft in Windows Server delay denial
Microsoft is breaking another release promise as it is pushing back the launch of Windows Server 2008 until February next year. The software, that was previously known by its "Longhorn" code name, had previously been promised for late this year.
Few people are surprised, yet Microsoft still thinks that it can argue that this delay isn't an actual delay. The code will still be finished by the end of the year, the company argues in a blog posting, so it didn't break its release promise.
For a company that hasn't been able to release a single product on time so far this year, Microsoft doesn't have a lot of credibility in arguing that this delay just that.
Dell rights all wrongs
Dell has discovered that you don't get very far by upsetting your customers. So today the company canned a bunch of its unfriendly terms and conditions and called it Vostro.
The new product line targets small businesses with up to 25 employees. Such firms often lack a specialized IT staff and therefore require computers that just work (really!), but previously were caught between buying expensive enterprise grade systems and inexpensive consumer models.
Inadvertently admitting that Dell's computers currently don't work, the company has cut bloatware from the computers. Also gone are unnecessary features such as TV tuners and Bluetooth.
Next, Vostro buyers get 30 days to send back any orders free or change, no questions asked. That might be a culture shock to people who have gone through Dell's past support hell, realized even chief Dell: Michael Dell himself.
"We're not going to make you jump through hoops. This is sort of a blast form the past for Dell," admitted Michael Dell, the company's chief executive who was brought back earlier this year to save the company.
It's amazing what great innovations you can come up with if you just listen to your customers.
Google apps' quiet revolution
Buried in today's press release about Google's acquisition of Postini was a little fact that should make Redmond shiver.
Google Apps has been adopted by more then 100,000 businesses and is signing up new users at a rate of 1,000 per days.
Postini develops security and backup technology for online email, instant messaging and other web based communications. It promotes Google's services from consumer grade to enterprise grade. By offering security, backup and encryption, it lets firms comply with the regulatory standards.
If Google accumulated 100,000 businesses without those assurances, it business must further explode now that the software is in full compliance and therefore can get full executive approval.
I doubt that anybody is throwing out their Microsoft Office suites in favor of Google Apps, but it looks like Google is beating Microsoft in niche markets, be they email or the important growth market of application sharing. Why set up an expensive Exchange server or a Sharepoint server to share information across departments and offices if Google Docs and Spreadsheets will let you do the same with a few mouse clicks? Setting up a shared document now is easier than putting the text into an email attachment.
Microsoft's competitive threat level just got elevated from orange to red.
Game developers killing the industry all over again
The gaming industry is wandering blindly in the forest of untapped markets, claims John Riccitiello (pictured below), chief executive for Electronic Arts.
The market is failing to meet the demands from average consumers and instead focuses on the same old gamer groups of teens, students and geeks who flock to titles like Halo and World of Warcraft.
There is plenty of money to be made off these groups, but there is a potentially far larger market in the mainstream consumer segment. But EA is famously unable to tap it, as it witnessed by the firm's flat earnings.
Riccitiello is finally starting to hear the wake-up call that was sent out by the Nintendo's Wii. Despised by hardcore gamers, the console is outselling all its competitors and forced Sony to slash the price for its PS3 by $100.
It's not like the gaming industry couldn't have seen this coming before. It not like they haven't undergone a game crash before when the complacency of game designer lead to the release of a series of sequels and titles based on major movies.
It's not like Sony has unsuccessfully attempted to position the PS2 as a mainstream consumer device. Riccitiello is marketing last year's news and taking credit for seeing it last.
iPhone for grannies
To our loyal following of readers with grandchildren, we recommend checking out the Daddy Types blog.
It offers some handy instructions on how to knit your grand child his/her own iPhone. That's a sure way to make him the laughing stock of the school yard. But then, if you're into knitting, you already made the little rascals the envy of the play ground when you knitted them that fake Nike sweater with the swoosh pointing in the wrong direction.
If that only encouraged you more, you better prepare for:
knitting: 0.5 hours
buttons: 3 hours
sewing, stuffing, edging: 1 hour-plus
Total: 4-5 hours
AMD goofs up on benchmarks
AMD earlier this week got in trouble over two marketing slides on its website that compared outdated information on Intel's quad core processors with overstated performance metrics for its own upcoming Barcelona chips. The page has since been removed.
Given that AMD leaves no chance unused to complain about the unfair marketing practices of Intel, the joke this time was on AMD. ZDNet's George Ou dismissed the company for its "blatant deceptive advertising".
AMD countered that the slides in question were simply outdated, and vowed to post an accurate comparison within the next few weeks.
But that doesn’t free the chipmaker from all blame. The company failed to include a publication date on the marketing page that could have indicated the fact that the information was outdated.
Secondly, it failed to pull the information even though it knew – or should have known – that the advertised performance in no way reflected the actual performance of the chips that AMD will ship.
Microsoft gets GPLv3 fears
Microsoft is sufficiently scared by the GPLv3 that the company decided to unilaterally change the terms and conditions for its Novell Suse Linux coupons.
The company on Thursday issued a statement declaring that:
Microsoft has decided that the Novell support certificates that we distribute to customers will not entitle the recipient to receive from Novell, or any other party, any subscription for support and updates relating to any code licensed under GPLv3.
At stake it the possibility that Microsoft could potentially be seen as a distributor of GPLv3 software as a result of last year's Novell-Microsoft partnership. If that is actually the case, Microsoft will be forced to provide everybody with a royalty free patent licence, undermining Microsoft's strategy to coerce patent licensing fees from the entire world.
Microsoft makes sure to stress out that the licensing changes are a cautionary measure against a non-existent threat. Because the company doesn't want to be perceived as being cornered by the Open Source communists.
You can dismiss most of that as futile public relations speak, but Microsoft actually has a point. The legal merits of some of the GPLv3 provisions will have to be proven in court. Most notably, the legal community is debating the enforceability of attempts to pull Microsoft into an agreement between the customer and Novell. But Microsoft itself may not be in the clear either, as the company can't simply change the terms of the Novell coupons.
Microsoft's was just another move in its open source chess game and it is now upon the latter to make a move. We were told that the Software Freedom Law Center is preparing its next move on Monday.
Public exploit auction a bad idea
A Swiss company has launched WSLabi, the first public market place for security exploits.
Researchers can sell or auction off their exploits on the website. The company will certify the flaw and provide a proof of concept, offering buyers the assurance that they are getting the real thing.
The initiative will allow a larger number of vulnerabilities to get disclosed. Chief executive Harman Zampariolo claims that last year as many as 139,362 flaws were discovered, but only 7,000 were publicly disclosed. He fails to explain where he came up with such an exact number.
The site currently offers 4 exploits with prices ranging from 500 to 2,000 Euro.
Paying for exploits isn't new. There are underground market places that continue to be well hidden from everybody, including most security researchers. Then you have bounty programmes from security vendors such as TippingPoint and software developers such as Mozilla.
An open market place has the obvious risk of attracting criminals. WSLabi may verify the identification of its buyers and sellers, but in the world of online fraud, fake identities are easy to come by.
Secondly, the security sector still believes overwhelmingly that researchers shouldn't be paid for exploit information. Instead they are credited, establishing them as capable pundits. Their reputation will then providing them jobs with firms that hope to prevent painful security disclosures.
Thirdly, the public doesn't benefit from this service. A small scale open source project is unlikely to pay up, and big firms such as Microsoft has so far refused to do so on principle. That means that security providers will likely end up with the information, which they can then use to build and independent patch or provide protection in their security software.
Independent patches are a bad idea because typically they are poorly tested. And having to rely on third party security software comes awfully close to paying the mafia for protection.
WSLabi aims to solve a problem of security researchers not getting paid, or not getting paid enough. This is largely a perceived problem, and that it seems to create a slew of new issues.
Beer drinkers unite against terrorism
Internet users from all over the world have united to buy John Smeaton a 1,000 pints of beer.
The baggage handler was elevated to hero status over the weekend when he assisted in subduing the terrorist who tried to squeeze their oversized SUV into a small door of Glasgow airport.
How could we reward this man that has a clear message to any terrorist who can make sense of his Scottish accent? Internet users from around the world figured 1,000 pints would be a good start. The £3.00 ($6) Paypal donations soon started streaming in, with a little help from Digg.
But could that just be another terrorist plot. With Smeaton stuck in the bar for the next few years, he won't be able to stop many future terrorist attacks.
Recommended reading: SAP's response to the Oracle espionage charges
SAP has finally responded to Oracle's claims that the company engaged in theft of its intellectual property. The legal document is highly recommended reading, as some of its appears to have been written by intoxicated frat boys.
For background, SAP subsidiary TomorrowNow (TN) in November and December downloaded vast amounts of support materials for Peoplesoft software, on behalf of customers migrating from Peoplesoft to SAP software. In some cases, the company violated the terms of those accounts by downloading information for which the client didn't own a license.
SAP denies most wrongdoings, but does admit that it has downloaded materials for products without a license.
But SAP won't go down without a fight. Instead the firm is responding to each charge with the fervor of a two bickering divorcees.
When Oracle charges that: "This storehouse of stolen Oracle intellectual property enables SAP to offer cut rate support services to customers who use Oracle software, and to attempt to lure them to SAP’s applications software platform and away from Oracle’s."
SAP quips: "Oracle professes surprise and confusion about how TN can provide services more cost-effectively than Oracle. The answer is simple – TN does not force its service customers to pay artificially inflated prices for service to fund Oracle’s future acquisition and integration of products that customers do not want or need. TN provides service, and charges only for that service."
SAP dismisses Oracle's list of stolen materials as "typical of the rhetoric and hyperbole throughout Oracle's complaint."
When Oracle complains that SAP's downloading displayed a "pattern of 'sweeping'" and "the indiscriminate, wholesale copying" of support materials, SAP responds that the process was just "conducted speedily and efficiently".
But after all the petty bickering, Oracle is left with SAP admitting that it downloaded materials without a license. That should account for something before a jury.
Some iPhone afterthoughts
After working late on Friday to post all the iPhone launch materials, Saturday morning a dear friend called who had moved away to Dubai. He realized that there wasn't a chance in hell that he would get his hands on an iPhone any time soon, but wanted to talk to somebody who did. (That, and he has finally succeeded in hacking around Dubai's VoIP ban). The iPhone beckons around the world.
Aside from some activation flaws, the iPhone launch went without a glitch. And as a hack, I can't help but appreciate the whole PR-side of the opeation. Microsoft had to fly in Xbox gamers to a hangar and create an artificial shortage of Xbox 360 boxes to create a media and bloggers frenzy.
Apple didn't need a fancy PR agency to make its iPhone look cool. Users lined up all by the themselves and Apple just provided free water. Nobody complained about wasting days waiting for the device – not even after they realized that there were plenty of iPhones to go around.
But to the initiated, it must have looked like an awkward exercise. Minutes before the iPhone went on sale, a person walking by asked me what all the fuss was about. He obviously hadn't heard about the iPhone. "Is it free then?" he asked in an attempt to understand why people would line up for more than 24 hours. He was speechless when he learnt that in addition to waiting, the people in line would have to shelve out $500 to $600.
But again, nobody complained. It was all about the experience. Many iPhone buyers had to part with their new line-friends after they paid for their devices. It was just like a really cool 2-day rock concert. Nobody wanted it to end, but it did nonetheless.



