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Xensys Blog May 2009

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Google Upgrades Business E-Mail
New York Times 05/11/2009
by Reuters Corporation

Last week Google and Postini announced the multimillion dollar take over of the latter, which would mean an infusion of cash into the relatively small IT messaging solutions provider. The duo will offer messaging solutions, but in terms of market and consumer responsiveness they might be looking like a 5,000 pound guerilla. That means they won't give customers what they want. Wasn't the economy and adoption rate response by Reuters a little off?

By 2017 the costs to maintain physical hardware and software, including upgrades and consultants, or an in-house IT department, will far exceed the benefit of waiting to adopt present 2007 technology. With the Fed's recent .50% reduction of the discount rate (meaning cheaper loans to the consumer, the Fed is attempting to increase the amount of cash available for consumer banks to loan out, this meaning that the cost of capital for private and corporate loans is lower), corporate spending could be on the increase. What does this mean? If companies have been looking to increase capital spending, now may be the time. Will they then target spending on cost-cutting measures such as eliminating in house software programs, including e-mail, in exchange for hosted, Software as a Service (SaaS) solutions?

Although such a move is decidedly an economic one, it is one that mid-level management may see as a more wholly employee efficiency argument. An employee can get more done in less time by eliminating the redundancy of the traditional local installed software and email solutions and employing a SaaS model. But, a $50 per user price tag may not equal the efficiency the mid-level managers are hoping to buy.

Read this article at Reuters.

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This blog article is not representative of Xensys Corporation. The thoughts and opinions expressed herein are solely the property of the article author and the blogger.

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Xensys Blog April 2009

Saving the Internet
Harvard Business Review 04/30/2009

"If Internet security breaches threaten the [computer's] ability to perform reliably, consumers will not see the [computer's] merit." This by the Harvard entrepreneurial law professor slash Oxford University internet governance professor Jonathan Zittrain, who also quipped in his recent article that "cyberspace can be made safer from the chaos and crime that threaten to overwhelm it." But how do we go about such a thing? Sitting in the Harvard University Berkman Center for Internet and Society, Zittrain pontificates from his academic pulpit on the perils and joys of an Internet-based society and in that an attempt to point a finger in the direction of a lofty solution.

The Internet had no business plan or CEO the Harvard professor notes, and so it grew out of the needs of do-it-yourselfers, researchers, and governments. Zittrain's article cruises through a history of personal computers (PCs) and the Internet, where he comments on that the initial design of the Worldwide Network was not actually for commerce, but rather for a purely academic and strategic sharing of knowledge and information. Once this unfortunate veil was lifted, the Internet swelled into, what, according to the overall Professor's sentiment, a seemingly chaotic online anarchy of a user-developed Internet.

Upon the advent of ubiquitous technology manufacturers are releasing what is called "Tethered Appliances" such as BlackBerry or Steve Jobs' iPhone. Tethered appliances are consumer products not readily adaptable as PCs are; instead they are highly controlled in what applications can be used. This, he postulates, limits the potential for malware, spam, and other illicit uses of the Internet. But does Zittrain leave an undertone of a need for lassoing of the Internet's prowess?

Zittrain counters this control argument with a discussion on Generative products, and services for that matter, which create "innovative output, [or] new things that improve people's lives, [while also allowing] the opportunity to connect other people, to work with them, and to express one's own individuality." This heralds a triumphant view of the very dogma underlying the use and success of the Internet: free information for all. It is sort of like a Statue of Liberty, a brazen giant signaling from in the Cloud, for all the information hungry of the world.

But we need someone to watch out for our Internet, don't we? In this wild west of places, Zittrain hints at shoot out style O.K. Corral encounter. With "zombie computers" and the new business model for "bad code" producing sleeper cell "botnets," only an online Wyatt Earp and Doc Holiday can protect us all from this invisible enemy within the Internet Cloud.

Zittrain reminds us of the Mydoom Worm of 2004, though commenting that viruses of this nature are like the "crime of graffiti," but counters with his description of the "business model for bad code - one that gives many viruses and worms payloads for purposes other than simple reproduction. What seemed truly remarkable when it was first discovered is now commonplace: viruses that compromise PCs to create large "botnets" open to later instructions [e.g. Trojans]. Such instructions have included directing the PC to become the botnet's own e-mail server, sending spam by the millions to e-mail addresses harvested from the hard disk of the machine." Approximately 100-150 million computers worldwide have been captured and designated as "botnets," or "zombie computers" which is one forth of all computers worldwide currently accessing the Internet, as of January 2007. As if this frightening number were not enough, these zombies pump out over 80% of the global spam epidemic and virus. The Harvard Professor leaves us with the latest 2007 e-mail statistics: 80% of all e-mail is spam.

For us to create a solution to this global threat, we must look to the Internet itself to forge a solution. Until then, we must view the Internet as a "work in progress."

Purchase this article from Harvard Business Online.

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The thoughts and opinions expressed herein are solely the property of the article author and the blogger.

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