Category Archives: IT

July 3, 2018 · 13:00

The Face of a book

So when we thought that the entire Cambridge Analytica was the tip of the iceberg, we were not kidding. The Washington Post (at https://www.washingtonpost.com/technology/2018/07/02/federal-investigators-broaden-focus-facebooks-role-sharing-data-with-cambridge-analytica-examining-statements-tech-giant) is giving us right now: “Representatives for the FBI, the SEC and the Federal Trade Commission have joined the Department of Justice in its inquiries about the two companies and the sharing of personal information of 71 million Americans“, that writing was always on the wall and it seems that it is pushing forward now, so even as Mark Zuckerberg thought that his day in court was done with a mere senate hearing, it seems that there is a much larger issue under the waterline and it is not merely data of a personal nature. The next parts that matters were: “Facebook discovered in 2015 that Cambridge Analytica, which later worked for the Trump campaign and other Republican candidates, had obtained Facebook data to create voter profiles. Yet Facebook didn’t disclose that information to the public until March, on the eve of the publication of news reports about the matter“, now this is nothing new but for some it is only now sinking in that the issue was known for two years. So when exactly did Facebook give us those goods? Two years of inaction, there are plenty of political players in the Democratic party who gotten results faster than that (which is saying a lot). So now we get to the first part, which is the SEC. The Securities and Exchange Commission will focus on “The questioning from federal investigators centres on what Facebook knew three years ago and why the company didn’t reveal it at the time to its users or investors”. You see, when a companies is valued on data, the setting that 20% of the details of the American people makes it into the public domain, that will impact a multi-billion value and that is now part of what could become a criminal investigation.

It is very likely that the SEC will focus primarily on TOPIC 8 – Non-GAAP Measures of Financial Performance, Liquidity, and Net Worth. Here we see:

8120.3 Measures of operating performance or statistical measures that fall outside the scope of the definition set forth above are not “non-GAAP financial measures”. Additionally, “non-GAAP financial measure” excludes financial information that does not have the effect of providing numerical measures that are different from the comparable GAAP measure. Examples of measures that are not non-GAAP financial measures include:

Operating and statistical measures (such as unit sales, number of employees, number of subscribers)
Measures of profit or loss and total assets for each segment that are consistent with disclosures made in accordance with ASC Topic 280. (Non-GAAP C&DI Questions 104.01 through 104.06)

So, whilst we think it is merely data, the multi-billion dollar value of Facebook is data and they lost 20% of the Americans (and a chunk of Brits and Australians), so that reporting was not there for 3 years, and the SEC is slightly miffed on the subject.

And even as we see: “The Department of Justice and the other federal agencies declined to comment. The FTC in March disclosed that it was investigating Facebook over possible privacy violations” the setting that Justice is mulling over the impact and how to act (which is perfectly understandable), every person with their share of issues that can hide outstanding debts through ‘identity theft’ has optional paths to consider and the Justice department is not ready for the worst case scenario where 20% of all Americans filling for economic loss through identity theft, and the part where the financial systems on a flawed usage (authentication versus non-repudiation) now opens the optional flood gates, so the Justice department is taking everything very cautiously (whilst pussyfooting on a (path of commitment).

The next comment we see is: ““The fact that the Justice Department, the FBI, the SEC and the FTC are sitting down together does raise serious concerns,” said David Vladeck, former director of the FTC’s Bureau of Consumer Protection and now a Georgetown Law professor. He said he had no direct knowledge of the investigation but said the combination of agencies involved “does raise all sorts of red flags.”“. It goes a little further than the settings we considered. Vox gives part of that setting (at https://www.vox.com/policy-and-politics/2017/10/16/15657512/cambridge-analytica-facebook-alexander-nix-christopher-wylie) last year, yet the one part I missed here is that such systems require profiles to be made so that there is interaction. It can be done without is, but having the profiles makes it easier and better. The second source is Wired (at https://www.wired.com/story/cambridge-analytica-execs-caught-discussing-extortion-and-fake-news/) gives us “Britain’s Channel 4 News caught executives at Cambridge Analytica appear to say they could extort politicians, send women to entrap them, and help proliferate propaganda to help their clients“, as well as “They probed them on all manner of underhanded tactics, from deliberately spreading fake news to making up false identities. According to the video, the Cambridge executives took the bait” and there we have the reason why Justice is playing it slow. It is not merely about what was done, planned or enacted. Such profiles are complete enough to give rise or other uses as well, and if they have been used to acquire goods or services, we have ongoing settings towards corporate fraud. It will not matter whether they did, if anyone previously had access to those profiles, it could still fall on the lap of Cambridge Analytica. So, apart from finding those profiles (and there will be more likely than not way beyond a dozen), which profiles are they and how much interaction was used or given? With the honey trap we have an optional case of solicitation; we get identity fraud, optional Synthetic Identity Theft, all requiring investigation. The Justice Department will require time for that, not merely on whether things were done, but the likelihood of a conviction.

The final setting I gave is given weight with the quote: “Facebook also made Cambridge sign a legally binding agreement that it had deleted the data that year, but over the weekend, sources close to the company told WIRED that data was still visible to employees within Cambridge in early 2017“, which gives us that people had access and there is absolutely no evidence that no criminal acts were committed.

So we have two additional considerations. The first is can we work on the premise of guilty until proven innocent? In these cases of identity theft that is often the only path to take to shown innocence. The second is that there have been clear indications that the data was available to Russians, which now opens a path to organised crime as well. One source gives “A 2013 survey from Javelin Strategy and Research estimates that the annual total loss to Americans due to identity theft was roughly $20 billion“, now this is not merely criminal gains, also the cost that the crimes brought onto others is part of this, yet in that if there is even one link that gives us that Cambridge Analytica data was used, the bucket of consideration will become a lot messier for the Justice department and even more intense on scrutiny; that is one step as organised crime and compromised national security seem to be two sides of the same coin, there is a decade of evidence on that, so yes, this mess will become a whole lot less nice soon enough.

From the mere setting of organised crime as well as national security settings where people from all walks of life use Facebook and the setting that even those in denial had ‘blackmail’ in their operational minds, the cards that gone wide and available to a whole range of non-intentional people will be a growing farm of identities and connections.
This now gets us to last week’s issue of the Washington Examiner. The issue shown (at https://www.washingtonexaminer.com/news/facebook-dhs-fbi-help-russian-interference-future-elections-report) is not the one we need to focus on. You see with “Though Facebook has yet to find any serious interference in the current election cycle from the agencies guilty of social media meddling in 2016, the giant company was burnt just enough that year to warrant what amounted to a cry for help from the private tech sector to the government“, we aren’t actually supposed to look, the setting of ‘Facebook has yet to find any serious interference in the current election cycle‘ is the wrong one. The evidence that other sources had shown is that Facebook had not acted for well over two years on the Cambridge Analytica setting, in addition, the fact that more sources confirmed that staff members had access to the data to well into 2017 and most of that was kept quiet to all parties and shareholders, is a larger issue for the simple reason that there is optional evidence that Facebook wiped whatever data was against them from the data carriers. When Facebook was willing to keep people in the dark for three years and the setting that we get in addition to the Senate hearings implies that it is in the best interest of Facebook to get rid of bulk data settings on any election tampering. The mention of ‘bulk’ is actually intentional. You see, editing evidence is hard and in the end in a system as complex as the one Facebook has, people get found out. Wiping entire index settings and wiping complete profiles with all the connected usage is more efficient. A data dump that is lost can be regained with old backups (like a 2015 backup), editing the evidence will never ever work, not on a system as wide as the one Facebook has. So there is clearly the consideration that this has been happening, the two year silence, as well as the Bloomberg quote we can use in this content. With: “Christopher Ailman, chief investment officer of the California State Teachers’ Retirement System, said Wednesday that he deactivated his personal account due to the “offensive” lack of oversight and poor management at Facebook. CalSTRS has owned shares of the company since its initial public offering in 2012.” Now consider that all reference to ‘Christopher Ailman‘ seems to be gone, now consider the 100 profiles (speculated number) that was used to spike the Russian way of life to Americans. The moments that these profiles are gone, so is the rest, so as it is all wiped, the images the meme’s all go the way of the Dodo. Consider that some sources give 9% of profiles deleted in America (another source gave us 14% as a number), when it includes the fake ones, what are the chances that anything will be found? I am adding the dangers of intent here, because when a company like Facebook keeps quiet for well over 2 years that setting becomes very realistic.

So what other evidence has now been wiped? If the justice department wants a full log of all deletions together with interaction, engagement and images, how much could be retrieved? That becomes the question and even as we all signed up for it, we definitely did not agree to the slightest that it was to be used to turn us into tools.

so when we see ‘Facebook turns to Homeland Security, FBI for help‘ in the Washington Examiner, was that to actually seek help, or merely to see if the data was cleaned out (accidentally overwritten) as complete as possible?

Is it a given? No, it is not, yet the different sources from the US and UK newspapers should leave you with this thought, if not for the CNBC quote ‘Executives at Cambridge Analytica were caught on camera suggesting that the firm could use sex workers, bribes, ex-spies and fake news to help candidates win votes around the world‘, than for the mere realisation that Facebook cannot afford getting included in the setting that they were the tools for blackmail, fake mail and solicitation as empowering sides to any election, so the given side of ‘if it moves shoot it, if it doesn’t move shoot it to be certain‘ is a setting that also applies to data centres, although there we use the term ‘overwriting‘ which is a lot more efficient than merely deleting stuff.

I reckon that by the end of this year there will be a lot of limelight that includes executives of Facebook and a court of law, I have no idea if they can avoid it, but there you merely need to wonder if they should be allowed to avoid it, two years of silence nullifies and voids most of the goodwill they thought they created in the Senate hearing.

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Tagged as ASC, Bureau of Consumer Protection, California State Teachers’ Retirement System, Cambridge Analytica, Channel 4 News, Christopher Ailman, CNBC, David Vladeck, DIA, Facebook, FBI, FTC, Justice Department, non-GAAP, NSA, Russian interference, SEC, UK, Vox, Washington Examiner, Washington Post, Wired

June 28, 2018 · 14:43

Chaos, benefit or danger?

As an aspiring agent of chaos, I have always been in favour of chaos. There are two quotes from the movie The Dark knight (2008) that are important here. They seem meaningless, but they are not. Consider the events surrounding Brexit. The IMF, Wall Street, the ECB all desperate to scheme through fear mongering, and they are even at it today, all so eager to keep their status quo in place. So, the first quote is: “Y’know they’re schemers. Schemers trying to control their little worlds. I try to show the schemers how pathetic their attempts to control things really are“, that is only partially true. The evidence is all around us on how Wall Street is still largely in control. I am not giving you some conspiracy theory on how they did one or the other. The news as we read it in nearly every decent newspaper gives you that evidence and they call it ‘policy’. It is fun to make a second movie reference, especially as it also included Christian Bale. The movie the Big Short (2015) shows clearly the facts of the subprime mortgage issues that unfolded and became a reality. It was based on the book by Michael Lewis called The Big Short: Inside the Doomsday Machine. I was sceptic at first, not because of the actors involved. Yet the notion that it involved Steve Carell and Ryan Gosling made me a little wary. In the end, I saw a movie that showed a Steve Carell who shows us how brilliant he actually is, more than merely a really good comedian. Even as he had already worked together with his prospective son in law (a Crazy, Stupid, Love pun), as the narrator in part of the movie Ryan Gosling gives it that extra, that part that will make you remember the movie long after you have seen it. The movie ends up being not merely an entertainer, the movie becomes an educator almost to the degree that the book was. Together with Margin Call and Inside Job you get a real grasp of the economic wasteland that 2008 created.

This part is truly important, because when you consider those facts and the mere realisation that the US, EU and many other places still have no proper protective laws in place is just scary.

Part of this is seen in the McKinsey report on June 5^th 2018 where we see: “That the effects of Pillar 2 add-ons and capital buffers should result in two widely different assessments, of €56 billion and €2.2 billion, is notable, highlighting the room for national discretion during implementation. In Sweden and Norway, for example, supervisors are reflecting higher risk weights for mortgage loans in Pillar 2 capital requirements. Some analysts are therefore expecting that these add-ons will be removed, given that they are already captured by an internal model floor for mortgages under Pillar 1“, the part ‘expecting that these add-ons will be removed‘ is the danger here. You see, Bloomberg reported in January 2018 (at https://www.bloomberg.com/news/articles/2018-01-25/banks-prepare-for-battle-as-europe-readies-rules-to-cut-risk), “banks are uncertain about how Pillar 2 capital requirements — demands set over and above legal minimums — will be imposed“, the statement is odd as they were already there in Basel 2, so why is there now ‘miscommunication’? (Perhaps ‘ignorance through intentional non-comprehension‘ might be a better term).

When we look at those two pillars we see:

First Pillar: Minimum Capital Requirement
The first pillar Minimum Capital Requirement is mainly for total risk including the credit risk, market risk as well as Operational Risk.

Second Pillar: Supervisory Review Process
The second pillar i.e. Supervisory Review Process is basically intended to ensure that the banks have adequate capital to support all the risks associated in their businesses.

You see, we have seen the game of CDO’s, derivatives in many forms, sometimes being ‘diplomatically’ called Bespoke Tranche Opportunities nowadays, the Big Short mentions it at the very end. Consider that this was a 2015 movie, and Bloomberg gives us last August: “Pacific Investment Management Co., Goldman Sachs Asset Management, Columbia Threadneedle and others are snatching up bonds tied to subprime mortgages and other home loans made before the housing crisis, while selling speculative-grade company debt. They say junk yields are too low for the risk investors are taking, and securities backed by mortgages — which have already gained as much as 6.9 percent this year according to Bank of America Corp. data — offer higher potential returns given the risk“, it implies that some could get rich by taking risk on junk. So when that collapses, considering Basel 3 pillar one and two, what are the chances that pillar one, the operational side does not include such events as it is not ‘operational‘ but based on non-operational settings? Where is the risk then? In addition, when we see that now, the banks are expected to ‘expecting that these add-ons will be removed‘ from consideration, how dangerous is the balance at that point? Did we not learn enough in the years 2008-2011? Why are we allowing these gambles leaving us with nothing twice over? Why are there no clear laws banning credit swaps and BTO’s? It might sound nice and soundbyte nice when the pope makes such a claim, yet it is still legally an option, so why was this not halted? The fact that the book and movie mention this gives rise to the fact that Wall Street knew for many years, yet they let it slide. So what happens when the people DEMAND from their president that the banks will no longer bailout banks involved in that? What happens when Wall Street faces the rage of the people and there is no continuance or replay of the Emergency Economic Stabilization Act of 2008? What happens when the people have had enough and in honour of the American Civil War (1861 to 1865) decide on the American Wall Street Clambake of (20xx) where 150 million Americans decide to lynch the 63,779 bankers on Wall Street in public, would that change a few noses to be more morally inclined (of those still alive that is)?

Agustin Carstens gives us a more diplomatic view in the Financial Times (at https://www.ft.com/content/720efbe2-75fa-11e8-a8c4-408cfba4327c) where we see “the future is not pre-ordained. The right policies can help. While the path ahead is a narrow one, it can be taken. We should seize the day to rebalance the policy mix and sustain the current expansion. That means regaining room for policy manoeuvre and reviving the flagging efforts to implement structural policies. Let’s use macroprudential tools to strengthen resilience where financial vulnerabilities are building up. Let’s ensure that public finances are on a sound footing“, yet he phrases it better, but as I stated in the beginning, I am an aspiring agent of chaos after all. This gets me to the second quote in the Dark Knight. It is applicable in two settings, the one we saw and the one we are about to see. The quote: “You know what I noticed? Nobody panics when things go according to plan. Even when the plan is horrifying. If tomorrow I told the press that, like, a gang-banger would get shot, or a truckload of soldiers will be blown up, nobody panics. Because it’s all part of the plan. But when I say that one little old mayor will die, well then everybody loses their minds!”

This gets me to the situation where Israel made a choice to speak, but from where I am sitting, it seems like the wrong voice to raise and it is the setting of a dangerous strategy that could backfire in ways that we cannot perceive as yet.

You see, on Wednesday afternoon Netanyahu tweeted out a video praising the Iranian soccer team for its performance in the World Cup against Portugal with “The Iranian team just did the impossible. To the Iranian people I say: You showed courage on the playing field, and today you showed the same courage in the streets of Iran.”

For soccer fans it was a remarkable day, most of them did not give Iran any chance of winning, not against Morocco, who has a team that can stand up to the likes of Spain, a nation devoted to soccer, so for Iran to win, that was a really big thing. Now consider the words ‘today you showed the same courage in the streets of Iran‘. This is a reference to the Iranian currency plunging to the depths of the Mariana trench, having a massive impact on the Iranian people. ABC gave us (at http://www.abc.net.au/news/2018-06-26/thousands-protest-in-iran-over-failing-economy/9909184) ‘Thousands protest in Iran over failing economy, forcing closure of Tehran’s Grand Bazaar‘, now we can acknowledge the event, yet from the lips of PM Benjamin Netanyahu, or in this one particular case ‘PM Be not a Yahoo‘ it seems to give notification that revolution needs to be on their mind. The problems is even as they currently have a lame duck in place (President Hassan Rouhani), who is merely accepted as the temporary voice of the Clerical and Military power in Iran. Such a revolution would merely empower the military and give rise to the Clerical side to end up supporting the military

Yet the setting in the frame whilst the nuclear negotiations are still going on, Iran is under pressure. The danger we are now exposed to is that the Iranian clerics and military will not place another ‘liberal’ minded person for another 4 years, so the danger of having some short minded version of former president Ahmadinejad on steroids as the next president of Iran is not out of the question. No one can tell whether the clerics and military have prepared the next one, but to get one in their years early tends to push chaos to a level of devastation and this is not the time to make this happen. So basically we see the feeding towards ‘then everybody loses their minds!‘ Could I be wrong?

Off course I can, yet the data and events seeping towards a more extreme new president was always coming, the acceleration in Saudi Arabia and the Iranian acts in Yemen clearly point that way. We see in some sources phrases like “Iranian Foreign Ministry spokesman Bahram Qasemi told a news conference that the ongoing offensive on Hodeidah has put the country on the brink of famine“, from my point of view, the Iranians achieved that last year with the aid of a tool like Hezbollah and pointing the Houthi rebels to cause maximum damage to the people of Yemen. So when we see: “The international organizations and the UN should make an effort to end the aggression against the oppressed Yemeni people“, the UN knows perfectly well that delivered missiles firing from Houthi positions into civilian targets in Saudi Arabia made that a non-option right of the bat. Yet, we must not forget that Foreign Ministry Spokesman Bahram Qassemi played his part very well, the main players are not new to this game and merely waiving their options away is not something the UN is willing to do, in that regard we all need time to get anything proper in place and Israel just changed that instance to some degree. Chaos in Tehran can unfold in ways that cannot be predicted because several players behind the scenes cannot be identified. Yes, the top two (Ali Khamenei and Qasem Soleimani) are known, yet their inner circle is not completely known and now we are in an upcoming impasse where we could be forced to wait until their moves are done, that whilst Iran is nowhere near on the ropes, so they have what might be seen as the field advantage for a little while and that is where chaos can go unbridled and cause actual long term damage.

There is enough evidence of that in Syria, Libya, Egypt and Yemen, none coming with short term solutions to get some actual productive. the Egyptian $500 million education reform bill is only two months old and took some time to get it all in the right shape. This is long term thinking, a true working strategy where the next generation will be more educated giving additional options for long term dialogues and giving a nation options to grow economically. Now consider that any prospective improvement is now optionally off the table for Iran until 2027. This gives a long term danger to sparks evolving in a very different form of chaos, one that no one can predict how it will unfold in the end. That is the game at present. Now consider such an event happening whilst Europe and the US go through another 2008 event, something that several predict and most seem to agree that it is pretty much unavoidable.

Almost like some used to say that the Great War (1914-1918) was the war to end all wars and we were treated to a very different reality in 1938. In that year we got the very first issue of Superman and Time magazine elected Adolf Hitler as ‘Man of the Year‘, do you remember how that ended, apparently all remaining 9 million Israeli’s definitely do!

Chaos can be good, it allows for true change. In this the quote: “It’s like knocking over an ant-hill. Every new generation gets stronger, the ant-hill gets redesigned, made better” is appropriate, yet the danger is that those ants have access to an arsenal of ‘solutions’ that can make a real dent ensuring long term chaos, that is why the Israeli push is not the beneficial push that the PM thought it could be, so tweeting that video was slightly too rash (for more than one reason). In that the earlier setting where we let the banks completely collapse might be the better options (if we had to choose between the two). In the second part, the Iranian debacle is also set on how China will react. Some are speculating that Iran wants to offer an oil solution if China is the saviour that they hope it will be. I cannot tell, I never looked at any data or papers giving real light to one path towards the other path. For china it might be an option, especially after the vitriolic actions against Huawei and ZTE, yet in the end that market is for now not large enough to cause truest concern, not whilst they have plenty of options to grow 5G in Europe with a population twice the size of the US and an overwhelming desire of the local populations in western Europe and Scandinavia to adopt it, there is enough for China to focus on, they might love to help out Iran, just to spite the US and to get under-priced oil, yet that is a separate play from what is on offer.

Scandinavia is also interesting as it allows Huawei to reach the bulk of Swedes through their three cities (Stockholm, Goteborg and Malmo). As Malmo is merely a bridge crossing away from Denmark’s capital Copenhagen a growth path for Huawei could show others soon thereafter what the rest is missing out on and with Swedish Telia on board, the setting for both Denmark and Norway becomes a reality. Even as the US is all up in arms, Reuters gave us merely 4 months ago on Huawei being “the company in prime position to lead the global race for next-generation 5G networks despite U.S. allegations it poses a security threat“. So even as we see newscasts like ‘Sprint, T-Mobile merger will generate 5G powerhouse, cut costs for users‘, that setting is definitely not a given. You see the chaos is not in getting the 5G, the chaos comes from 5G as governments and large telecom companies are nowhere near dealing with the setting that cyber threats can become. this is not merely phishing, scamming or abducting accounts, this is the realistic danger that for the first two years 5G facilitators become start points of all kinds of chaos though the facilitation of non-calibrated systems, architecture lacking equilibrium. the difference between ‘a holistic approach towards DDoS attacks and 5G networks, rather than relying on outdated defence tactics‘ (source: Wireless Week). Non-repudiation would have been a quality first step in that, in a time when too many are relying on authentication, we seem to forget that it remains relatively easy to get a ‘false positive’. Please do not take my word for that, merely visit 675 N Randolph St, Arlington, VA USA (address of DARPA) and ask Dr. Steven H. Walker if you can take a look at a massive archive of false positives that their previous research gave in all kinds of fields, it is an impressive read to get your fingers on and you’ll die of old age before you even get through 30% of the materials, even if you start as a teenager.

That was the ball game from the start. A mere setting of order versus chaos; a simple setting where order could have prevailed, if not for the economic setting of greed and speed over quality. In that 5G does not open up the super highway of data, it merely opened `15 highways next to the one we cannot even properly control now and we end getting 16 highways flooding us with false positives, chaos on a new level and not chaos of the good kind. It will be the wet dream of organised crime for close to a decade to come and the larger players remain is presented denial.

For that you merely have to search Google and use the search term “Telstra non-repudiation“, you get ‘Mobile Authenticator’, which states to be ‘Enhanced non-repudiation’. These two are not the same! Now, important that this is not anti-Telstra, the bulk of all systems on a global level have these issues. My issue in this particular case is “reduce the costs associated with robust user authentication for large populations of staff or customers accessing your online service” Non-repudiation is never cheaper (for now) and in the end the flaws are not obvious, yet they are there and it takes one sloppy moment to give access. Computer world gave us last year the article by Evan Schuman involved here is Steven Sprague is the CEO of Rivetz, this project that comes the from National Institute of Standards and Technology’s National Cybersecurity Center of Excellence (yes, it’s a mouth full) is giving us: ““Software code is easily altered, and memory can be copied,” he said. “The [whole] software process can be observed. You simply cannot hide a secret in the operating system. It’s time to finally do it correctly, with hardened keys within the device.”“. It is one step stronger, yet this is still not non-repudiation, where the setting is that you and only you could have done the deed. Some go for the ‘Dual biometrics may just be the authentication answer we need‘, yet that is still ways away and in the end on the mobile path not really a good solution. One player called Sensory is making positive headway, yet they are not there yet and time ran out close to two years ago to get something really good on the roadmap. So even as we see that authentication solutions are there, in the immediate setting where mobiles can now move billions, the game is now and has always been non-repudiation. At present we move over a billion dollars a day via mobiles and ecommerce, when we consider that this push is going to fivefold in the next decade, do you really think that authentication is going to get the job done securely and on time before the big bank download begins?

Is there a connection?

Consider Bank Melli Iran: $45.5 billion, Bank Mellat: $39.7 billion and Bank Saderat Iran: $39.3 billion. Merely three banks with a few billions. Now consider the following settings. In the first we get “While the standards of the Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) are widely followed around the world, they are not enforced in Iran“, a mere setting of rules. Now we consider the resetting of Basel 3 pillars one and two, with the support from several financial sources giving us “The Central Bank of Iran has played a significant and effective role in implementing Basel II and III standards in the banking system“. Now we take those elements and add 5G, whilst non-repudiation is non-existent and some devious entrepreneurs help themselves to the $125 billion of cream. This fat cat, can we call them ‘organised cats’, could potentially use the 5G debacle to remain anonymous and sail away on their new yacht (by the way, if you guys pull that off, please remember my AU$20,000,000 consultancy fee through Riyadh, so I can use the legally available tax avoidance rules).

Do you still think I am joking?

We have heard all kinds of noise concerning security, so in addition to that, one source (Internet of business dot com) gives us “5G will enable IoT applications such as autonomous vehicles, healthcare solutions, and robotics. But the technology also poses a much larger security risk than the 2G, 3G, and 4G networks that came before it. Why is this?
Significantly, 5G represents an overhaul in the way that networks are run and managed. In contrast to the hardware-based networks of the past, the technology takes advantage of virtualisation and cloud systems, leaving it more vulnerable to breaches if not properly secured.” There we see the connection, proclamation of proper security are at the foundation of it, whilst the systems are all about Authentication and not about clear non-repudiation, in an age where mobile hi-jacking is a reality of life, the authentications in place are often too easily avoided. In the time a person walks to the bathroom a highly jacked phone can now set up the vibe of 25 million transactions, all completed in 52 seconds, most likely at that point, the person going to the toilet barely sat down for the event to release, that’s what it took to set the Iranian coffers to ’empty’. Now, many will not react that it happens to Iran, yet the newly elected extremist will not let that slide; and what happens when it is not Iran, but another nation? What happens when we realise too late that our own banks are not up to scrap?

Only this month did we see: “Security breaches continue to be an ever-present threat for financial institutions. Defending against attacks and authenticating customers without creating undue friction is something financial institutions have not yet completely solved. Consumers seem to be willing to use more secure methods to access their accounts, but not necessarily give up on ease and speed of transacting“, and in addition ““Attacks haven’t died down,” said Will Lasala, director of security solutions at OneSpan, a cybersecurity firm. “The amount of loss is through the roof. Stopping losses and the need to analyze what’s happening in those transactions is important.”“. That was this month, whilst the FDIC (Federal Deposit Insurance Corporation) treated all willing to learn to “Internet connections establish a pathway for hackers and thieves to access and steal sensitive personal information, including the banking records that many customers store on their home computers. Phishing, pharming, spyware, malware, worms, nimdas, viruses, buffer overflows, and spam—all relatively recent entries to our vocabulary—have raised electronic/Internet banking risk levels to new highs, and financial institutions have had to increase security measures to address those risks“, that was in 2005, thirteen years ago. Welcome to the age of ‘if it costs too much, sit on the solution for now‘, you see, not much headway was made (clearly nowhere near enough) and in that result we are now on the edge of 5G where the speed and issues are driven upwards at least tenfold, so that is where non-repudiation was a solution, if only someone had gotten us there. It was a risk covered in my University IT classes in 2010, so it is not like there was no awareness, merely a path that was seen by too many decision makers as too unprofitable to consider.

Now we see chaos in its proper light. Chaos could have set the stage properly, if they only allowed the banks to collapse in 2008, yet that did not happen and some players are up to their ‘old’ tricks in a new jacket whilst the people are more likely than not having to pay for it all again.

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Tagged as 5G, AAOIFI, ABC, Accounting and Auditing Organization for Islamic Financial Institutions, Agustín Carstens, Ali Khamenei, Bahram Qasemi, bloomberg, DARPA, DDOS attacks, Denmark, Dr. Steven H. Walker, ECB, Egypt, Evan Schuman, FDIC, Federal Deposit Insurance Corporation, Financial Times, Huawei, IMF, libya, McKinsey report, National Institute of Standards and Technology's National Cybersecurity Center of Excellence, Norway, OneSpan, PM Benjamin Netanyahu, President Hassan Rouhani, Qasem Soleimani, Rivetz, Ryan Gosling, Scandinavia, Steve Carell, Steven Sprague, Sweden, Syria, Wall Street, Will Lasala, Yemen

June 27, 2018 · 13:09

The non-knowing speak loudest

There is an old saying that goes back to the original circus, the days of Sir Alec Guiness, John Le Carre and the circus (MI6). Those who do not know speak and those who do will not. There is however a valid issue with that mindset. When it is merely intelligence and what some regard as spyshit, we tend to not care. It is their world and they tend to live by other rules even as they have the same lack of common cyber sense as some US generals, it is their choice to make. Yet when we see labour people like Michael Danby need to present evidence in regards to “an opposition Labor party MP, called on the Liberal-National coalition to block Huawei and fellow Chinese telecoms company ZTE from supplying equipment for the 5G network. “Both Huawei and ZTE must report to the Communist party cell at the top of their organisations,” he told parliament. “Let me issue a clarion call to this parliament: Australia’s 5G network must not be sold to these telcos.”” I am actually in the mindset that his seat should be put up for auction if he does not disclose a proper setting and give evidence as to the reasoning of all this. It becomes more pressing when we see “Mr Lord, a former rear admiral in the Royal Australian Navy, told Australia’s state broadcaster on Monday that these claims were “wrong”, adding that Huawei was not owned by any committee of government and posed no risk to Australia’s security“. It is not just because Mr Lord is a former rear admiral, more that the average naval midshipman tends to be more reliable than any politician. We get this from the Financial Times (at https://www.ft.com/content/1a2d19ba-67b1-11e8-8cf3-0c230fa67aec). In addition, when we get politicians start the scare tactics of ‘critical infrastructure pose a risk to national security’, there is a clear need for both Duncan Lewis and Paul Symon AO to get hauled in a chair in Canberra and ask them to openly answer the questions regarding any evidence that Huawei is a security threat. To blatantly accept the US on their ‘china fears’ is all well and good for Telstra, yet the setting is not a given and the fact that Telstra is nowhere near the technological levels of Huawei is not something that we blame them from, but they basically lost the 5G war before it started through their own actions and inactions.

Now if there is an actual national security concern, we should be open about that and when that happens, and evidence is presented, at that point we can all relax and state to Huawei that we feel sorry for the inconvenience caused, but such concerns are just too big to ignore. I think we have had quite enough of these presentations that reek of Colin Powell and his silver suitcase with evidence that no one ever saw in 2001. We cannot go in that direction ever again. We will not be the play toy of greedy telecom companies and their internal needs for stupidity and inactions; we can no longer afford such a nepotism environment.

That same issue can be said regarding Nationals MP George Christensen. Apart from him trying to undo a business deal of a 99 year lease, no matter how silly that deal was, Australia cannot be perceived as a nation that cannot be trusted at the business table. My second issue is why a maroon (Queenslander) is involving himself with NT politics. In that regard, why do we not see the responses form Vicki O’Halloran is she has any, is she not the appointed administrator? In this, the game is not over. The Australian Financial Review gives us: “Huawei faces the likelihood that Cabinet’s national security committee will veto it supplying equipment for the 5G network, based on the recommendations of security agencies, over concerns about the potential for cyber espionage at the behest of China’s leaders“. In this the question becomes, is there an actual security concern, or is it that the national concern is the devaluation of Telstra? In additional support we need to see the Sydney Morning Herald two weeks ago when they gave us (at https://www.smh.com.au/business/companies/how-a-huawei-5g-ban-is-about-more-than-espionage-20180614-p4zlhf.html): “The Sydney Morning Herald and The Age reported in March that there were serious concerns within the Turnbull government about Huawei’s potential role in 5G – a new wireless standard that could be up to 10 times as powerful as existing mobile services, and used to power internet connections for a range of consumer devices beyond phones“, as well as “the decision will have an impact on Australia’s $40 billion a year telecoms market – potentially hurting Telstra’s rivals“. the first part is something I wrote about for well over a year, the second one is important as we see ‘potentially hurting Telstra’s rivals‘, from my personal point of view it reads like the one lobotomised idiot in telecom country gets to decide through arm-twisting on how we need to remain backwards as they set the standard that they could not deliver for the longest of times (a little sarcasm regarding Telstra’s 2011 3.7G), I wrote about that recently.

ABC gave us yesterday: “it continues to be the target of criticism over its connections to the Chinese Government, including allegations it is involved in state-sponsored espionage“, yet the people have never been shown actual evidence, so where is that at? There might have been doubts to some degree for a while, but the Powell stunt is too clear in our minds and the USA does not have the credibility (or credit rating for that matter) it once had. The fact that the opposing former rear admiral of the Australian navy trumps two half bit politicians seeking the limelight any day of the week and some stay silent, the reason for that is only speculation, but we might not need to seek far and a few words ion Google Search might help find that answer (like ‘Telstra’ and ‘8000’). When we see some giving us: ‘Telstra Corporation Ltd (ASX:TLS) is betting it all on 5G‘ and we see the Telstra strategy briefing (at https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf-e/2018-Strategy-Update.pdf), we see on page 6, Leading with 5G, that would never be an option with Huawei in play as they are ahead by a lot, so the presentation given a week ago, whilst we realise that the presentation was prepared way before that is giving the setting that Huawei is no longer considered to be competition, that is what we now face! What some might call a backward organisation proclaiming to be leading whilst 8000 men will be missing through inaction. That page is even more fun when you consider the quote ‘new technologies like IoT‘, which is funny when you consider that the Internet of Things (IoT) is a system of interrelated computing devices. It is not a technology; it is a network that enables technology. In addition, when you start nit-picking in that 34 page event, we see all the bells and whistles we need to see, yet when you consider consumers and small business (the millions of people that Telstra charges) starts at page 9 and gives us 5 slides. We see ‘cutting edge 5G capability’ (by whose standards?), we see location devices (with the image of a dog), Access to rewards an tickets, a fully-digital relationship with Telstra (an implied no more personal interaction after the sales, merely a chatbot) and value added services, yet the value of a service like customer service and customer care are absent in that part of the equation, so how does this push the people forward, because I doubt that it actually will achieve anything in the long run and one flaw will anger the actual consumers without limits.

You see, personally I believe in the IoT, I believe in 5G, they are tools to enhance experiences and interactions, not make them obsolete and that is what feel when I saw the Telstra strategy update. These two elements can enhance customer care, customer service and customer support, not replace them with ‘AI’ enhanced chatbots. So the moment we get a 2.0 version of ‘Telstra’s new chatbot, Codi, is making so many mistakes customers are furious’ (at https://www.businessinsider.com.au/telstra-codi-bot-backlash-2018-3), chatbots can be a great asset to get the information and channel the call to the right person, yet that again is merely enhancing and that can work fine. The presentation implies the loss of actual customer values and ignoring their need for interactions. That in an aging population might be the least intelligent stance to make ever.

Yet this does not give way to the issue on Telstra versus Huawei, as the Sydney Morning Herald states “Telstra has refused to exclude Huawei from its 5G tender, but that is seen more as a way of keeping its existing supplier Ericsson on its toes“, as well as “In other words, a ban could be bad news for TPG, Vodafone and Optus. Whether it is necessarily good news for Telstra – which has its own issues at the moment – is less clear“. In finality we get “Intelligence agencies tend to get their way on matters like these“, this beckons the question what are they actually after? The US seems to be in bed with Samsung and their 5G routers, so it makes sense that this will be the path that Telstra walks as well, time will tell how it ends.

So why is this such a big deal?

We are currently in danger of actually falling behind Saudi Arabia, yes, that place in a large sandbox is about to surpass us in 5G and other technologies. They had the audacity to reserve half a trillion dollars toward Vision 2030 and Neom. So when we got “Al-Khobar in the Eastern Province, of Saudi Arabia, has become the first city in the region to benefit from the fifth-generation wireless network or 5G network, according to a press statement issued by the Center of International Communication“, last month. There was not a surprise in my bone. You see, this will drive their Vision 2030 plans even further. So as Saudi Arabia is now the new pond to grow speciality in 5G, app designers can promote, test and deliver on knowledge that will be available whilst Telstra is trying to figure out how to get 5G installed. with “All the necessary national 5G policies and supporting administrative provisions are planned to be in place before the end of 2019, along with the award of initial batches of the spectrum to support the full commercial deployment of 5G technologies“, we see that Saudi Arabia had been taking this serious for a much longer time. This goes a little further when we see ‘the Middle East and Africa 5G Technology market (Egypt, Saudi Arabia, UAE, Nigeria, and South Africa)‘, so at this point, Saudi Arabia has a head start to not just push Saudi Arabia forward, they have quite literally first dibs on gaining a chunk of the 98 million Egyptians. Not all can afford 5G, we get that, but those who do are confronted with only Saudi Arabia as a Muslim player, you did not actually believe that they would run to Vodafone, did you?

So back to the 5G local ‘market’! For this we need to take a look at the Australian Financial review 2 weeks ago. Here we see (at https://www.afr.com/opinion/columnists/the-technical-reasons-why-huawei-too-great-a-5g-risk-20180614-h11e3o), with the title ‘The technical reasons why Huawei is too great a 5G risk‘, the start is good, this is what we wanted. Yet we are treated to paragraphs of emotion and alleged settings. So when we see: “Huawei presents unique additional risk beyond the “normal” risk of buying complex equipment. China has demonstrated a long-standing intent to conduct cyber-espionage“, so is ‘intent’ shown in evidence? How did the CIA and NSA acquire our data or Cambridge Analytica for that matter? ‘China is thought to be behind data breaches‘ is merely a statement ‘thought‘ is speculation, not evidence. Then we get: “The US Trade Representative’s Section 301 report from March this year details the very close cooperation between the Third Department of China’s People’s Liberation Army (3PLA is a military hacking unit, also known as Unit 61398) and Chinese enterprises“, I have to get back to this. We are treated to ‘At one extreme, Huawei could be asked‘, is a case of fear mongering and not evidence. In addition we get ‘it is certainly a possibility‘ which came after ‘Vulnerabilities may already exist. This may not be the most likely possibility‘ as well as ‘very likely‘ all emotional responses, none of them evidence in any way, so the article with included in the title ‘The technical reasons’, has pretty much zero technology and close to 90% ‘allegedly’, speculations and emotional twists, whilst we cannot deny the optional existence of vulnerabilities, yet these are found regularly in Cisco hardware and Microsoft software, so have those two been banned in Australia?

Now to get back to the Section 301 report (at https://ustr.gov/sites/default/files/Section%20301%20FINAL.PDF). It is 215 pages and I did not read that complete political US marketing behemoth. There is one that actually carries weight. On page 153 we see: “evidence from U.S. law enforcement and private sources indicates that the Chinese government has used cyber intrusions to serve its strategic economic objectives. Documented incidents of China’s cyber intrusions against U.S. commercial entities align closely with China’s industrial policy objectives. As the global economy has increased its dependence on information systems in recent years, cyber theft became one of China’s preferred methods of collecting commercial information because of its logistical advantages and plausible deniability“, which is basically good application of intelligence gathering. Please do not take my word for it, feel free to call the NSA (at +1-301-6886311, all their calls are recorded for training and quality purposes). Oh, and before I forget, the text came with footnote 970, which gave us “A number of public submissions provided to USTR state that the Chinese government has no reason to conduct cyber intrusions or commit cyber theft for commercial purposes, see CHINA GENERAL CHAMBER OF COMMERCE [hereinafter “CGCC”], Submission, Section 301 Hearing 16 (Sept. 28, 2017); that the US has not provided evidence of such actions by China, that China is also a target of cyber-attacks, and that the two countries should work together“, there is that to deal with and is that not a rare instance where we are treated to ‘the US has not provided evidence of such actions‘, how many times have we seen claims like that since 2001? Would that number be a 4 or 5 digit number?

The point is not whether it can or could happen, the question becomes did it happen here? let’s not forget that in most settings the section 301 report is about US interests and their technological advancement (which they lost by becoming iteratively stupid). Here we have a different setting. In the setting we face Huawei has a technological advance over all we have in Australia and most of Europe as well. Huawei was one of the first to realise the power of data and 5G and they are close to a market leader, the US is basically relying on Samsung to get them there. BT (British Telecom) is on the ball, but still not on par. They are in bed with Finland “BT has teamed with Nokia to collaborate on the creation of 5G proof of concept trials, the development of emerging technology standards and equipment, and potential 5G use cases“, so this sets the larger players in a field where Nokia and Huawei are now active. The SAMENA Telecom Leaders Summit 2018 and Saudi Telecom Company (STC) announced today that it is working with Nokia to launch a 5G network in 2018 within Saudi Arabia, yet the technology agreements show that it does include Huawei and Cisco, so they aren’t already active, the setting for the initial bumps in the road that Cisco, Nokia and Huawei will surely overcome is knowledge that we will not have in Australia long after someone was able to connect the 5G router to a power point (very presentable, yet the online green light seems to be broken).

So whilst politicians are considering who to be buddies with, Saudi Arabia joins the US and they will be the first 5G providers, which means that the UK and Australia are lagging behind and optionally not for the short term either.

So am I not knowing or am I all knowing? I actually prefer the first, because it is more relaxing; yet the need to speak out loud is becoming increasingly important even if it was only to place the loud mouth limelight seeking politicians like Michael Danby and George Christensen in their slightly too arrogant place. They are of course welcome to present ACTUAL evidence proving me wrong. #WishingForAMiracleHere

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Tagged as 5G, AFR, Al-Khobar, ASIO, ASIS, Australia, Australian Financial Review, BBC, British Telecom, BT, Business Insider, CGCC, China, Cisco, Colin Powell, Duncan Lewis, Egypt, Financial Times, Finland, George Christensen, google, Huawei, IoT, John Le Carre, John Lord, MI6, Michael Danby, Nigeria, Nokia, Paul Symon AO, Peoples Liberation Army, Royal Australian Navy, SAMENA Telecom Leaders Summit 2018, Saudi Arabia, Saudi Telecom Company, Section 301 report, Sir Alec Guiness, SMH, South Africa, STC, Sydney Morning Herald, Telstra, the Age, the Guardian, Turnbull government, UAE, Unit 61398, US, Vicki O’Halloran, ZTE

June 21, 2018 · 13:49

Telecom providers & swaggering vanity

Any business has issues; the one that states that they do not is lying to you. We understand that there is mostly smooth sailing, that there are bumps in the road and that things are not always on track. We have all seen them; we might have all seen them near our desks. It is a reality, if a lumberjack is working, there will be wood chips, such is life. So when we see the Telstra ‘purpose & values’, we see: “The telecommunications industry is experiencing enormous growth; network traffic is growing faster than any other period of time and digital technology is changing our world. Telstra is at the heart of this change—and we’re helping make it happen by connecting everything to everyone“. That might be true, yet when you price yourself out of a market, there tend to be consequences.

So when the Business Insider gives us merely 2 days ago: “It looked like there were national problems with the Telstra network again today, but the Telco says no” (at https://www.businessinsider.com.au/telstra-is-down-nationally-2018-6), we see a troubling setting. So the quote “The Telstra network appeared to have another national meltdown, with services in most of the major capitals disrupted in the first half of Tuesday, but the company denies there were any problems with its mobile network.“, concessions on social media were made and the services were back up in the afternoon. Yet the damage was done. Not the fault, the disruption or the faulty service. The fact that Telstra was in denial is the issue. So when we also see: “Telstra said there was no issue for Telstra customers and the Telco’s 3G and 4G networks. “There was a vendor platform issue that impacted mobile virtual network operating services for a small number of wholesale customers,” a spokesperson said“, we see the issue that Telstra has moved on through carefully phrased denials. It is a tactic to use, it is however the wrong tactic, because it takes away trust and Telstra did not have that much left to begin with. One source gives another view entirely; it is the view that makes CEO Andy Penn too confused for his own good and the health of the company. In regards to the question that ABC host Leigh Sales asked, which was: “How can shedding 8000 jobs, not make your service worse?“, the response “Mr Penn deflected the question and talked about the complexity of a Telco network and the inevitability of network interruptions when dealing with such sprawling physical technology assets and software. After the host tried once more to ask the question, the Telstra boss steered clear of the jobs losses and moved the conversation back towards his message of increased simplicity for customers“, we merely see the fact that Telstra is playing a dangerous game of stupidity. Deflection is bad and shares will get slammed (and they did). You see, the proper answer (or better stated a proper answer) would be: “As we are moving to a flatter organisation, management is now directly in touch with the workforce, management will get the full scope of issues in their area of responsibility. There is no longer a delay of information trickling on the path of 2-3 managers deciding where what goes, the buck stops with the manager in charge. Basically the lower managers get more responsibility and as they resolve the issues also a much better reward. The direct exposure to issues and answering the questions of staff members and consumers will lead to a much better understanding and also decrees the timeline of issues and questions requiring a resolution“. You see? I resolved that question, I gave an answer, I exceeded the expectation of the current customer base and I did not deflect. So perhaps I might be the better CEO Andy? Now, we can add that this is a work in progress and as any company needs to adjust settings; with a flat organisation structure it is much more direct and easier to adjust. So yesterday’s interview, published today, I merely required seconds to set the stage in a more positive way. Yet Telstra has more issues. Their mobile plans are still horrendously expensive; in some cases placed like Optus will offer 20 times the data at the same price and that was merely a month ago. So Telstra needs to realise that unless they truly become competitive with some of their competitors. In addition when we look at IT News, we see (at https://www.itnews.com.au/news/telstra-completely-changes-how-it-sells-enterprise-services-494853) the issues that some expect. Issues like ‘Confirms it took ‘too long’ to revamp enterprise core’, yet the revamping is not the issue, actually it is as there was no ‘real’ revamping, merely adjust the tailoring to fit other elements (as I personally see it). You see, the danger offered through: ““It is the ability to provide fixed voice, unified communications and messaging with add-ons for mobile and applications on a per seat pricing basis for our midmarket customers. “It will be all digital.” It will be ordered in minutes, provisioned in minutes to hours, and everything will be billed electronically with the ability for the customer to flex up and down in volume in real time“. This is what I call the folly setting. It starts with ‘our midmarket customers‘, which translate to ‘corporations and those with money’, which is fair enough, yet the economy is still in a place where the cost of living is way too high. The rest is merely a statement of ‘buy on our website or through a phone app’; there will be no negotiating, no personal touch, not a warm touch to any of it. Merely a ‘buy this by clicking or go somewhere else’. You can rephrase it again and again, but that is where it is heading and the people have no real high regard for an automated Telstra, so that will hammer the share prices for at least an additional 2%-3% in a negative direction. So as more and more people go towards the ‘Yes’ oriented Optus stores, we see that in some places Telstra is setting up movable selling points (Westfield Burwood), yet in the direct cold light of day, it is not merely a transforming business, it is the setting where Telstra looks less appealing than before. That requires addressing and Andy Penn did not go the right way about it from the beginning, yet in the setting we now see it, it is even less appealing than ever before.

It goes further than all this, a mere 3 hours ago, ABC gives us ‘Is this really the end of Telstra’s ‘confusopoly’?‘ (at http://www.abc.net.au/news/2018-06-21/telstra-what-is-in-it-for-customers/9891076), there we see: “Andy Penn says the job losses will largely come from management so presumably consumer-facing staff will remain”, so why is Andy Capp hiding behind ‘presumably‘?

The AFR takes it in another direction. There we see ‘Telstra’s strategy is all about killing Optus, Vodafone and TPG‘. So (at https://www.afr.com/brand/chanticleer/telstras-strategy-is-all-about-killing-optus-vodafone-and-tpg-20180620-h11mtt), we see ” competitors are clearly going to be most obvious victims of his 2022 strategy, which prioritises mobile above everything else in Telstra’s sprawling portfolio of businesses”, yet with the website as it is and the announced 5G rumours that are nowhere near 5G we wonder how much trouble they are in. so even as we see the boastful “Telstra’s mobile business currently earns about $4 billion a year on revenue of $10 billion“, it will have little effect until the data offered is a hell of a lot higher than they currently offer. It might have been a good moment of timing for me, I ended up with twice the data ant half the price. The largest population really cares about a deal that is 75% better and that is not merely me, it includes well over 60% of all households and pretty much 99.43% of all students. Even if Telstra proclaims that they only care about midmarkets, the shareholders will not understand how they lost out on millions of customers and that change is not reflected in anything we heard. It does not stop there. With the setting of the quote “Telstra said on Wednesday that the number of Australian households with no fixed broadband service is between 10 and 15 per cent. It expects this to rise to 25 to 30 per cent as 5G is rolled out around the country“, we see that Telstra is to lose out on more markets. The shear fact that Vodafone figured out in the EU is an optional gain of momentum for Vodafone, yet the hybrid options that Telstra failed to see could cost them even more in the 2020-2024 period. In addition, when we see “Penn’s decision to adopt an aggressive roll out strategy for 5G plays into the established trend of greater use of mobile networks relative to fixed line, much of which is driven by the widespread frustration caused by the poor performance of the NBN Co”, considering the part I discussed yesterday in ‘Telstra, NATO and the USA’ (at https://lawlordtobe.com/2018/06/20/telstra-nato-and-the-usa/) alerted us to a previous stunt played with 3.7G, yet the setting is reflective here. In part it is expected to be merely temporary. So when we see on the Telstra site “Verizon and Ericsson recently decided to test the 5G network on a moving target — a car being driven around a racetrack — and were able to record a 6.4gb/s connection”, now I get it. It is a test setting yet the speed is still off by almost 40%, which is not good. It is better than what we have now, but getting out in front before the technology is truly ready is very dangerous. In addition CNet had another issue that also reflects in Australia, as well as a league of other nations. With “Cybersecurity for 5G networks had been a top priority for the previous FCC under Tom Wheeler, a Democrat appointed by President Barack Obama. But the current Republican-led agency believes the FCC should not have authority to ensure wireless providers are building secure networks. “This correctly diagnoses a real problem. There is a worldwide race to lead in 5G and other nations are poised to win,” FCC commissioner Jessica Rosenworcel, a Democrat, noted in her statement. “But the remedy proposed here really misses the mark.””

You see, I have been writing for the longest time on the benefits and powers that 5G will give on a whole new range of options, yet the overly non-repudiation ignorance in Telecom town is staggering. Their view is almost on par where the NSA decides to set the admin rights to the guest account and leave the password blank. The dangers that people will face on that level cannot be comprehended. The moment the ball is dropped, the damage to people will be beyond comprehension. It boils down to Cambridge Analytica times 50, with all privacy set to public reading. The business will love the amount the amount of data; the people will be less enthusiastic as their consumer rights and needs are no longer in stock with any shop using the internet for sales. I raised issues on that field in March 2017 (at https://lawlordtobe.com/2017/03/13/the-spotlight-on-exploiters/), yet that was merely the lowest setting. At that point, the Guardian (the writer that is) raised: “The mass connectivity it allows for will also help expand the so-called internet of things (IoT), in which everyday appliances and devices wirelessly connect to the internet and each other“. Yet, this is in equal measure the danger. You see as Telstra gave visibility to ‘Lessons from CES 2018: everything is connected‘ (at https://exchange.telstra.com.au/after-ces-2018-everything-in-tech-is-connected/) and Huawei is giving us ‘Huawei Connect 2018: Activate Intelligence’ (at http://www.huawei.com/en/press-events/events/huaweiconnect2018), they will likely all miss out on giving proper light to non-repudiation. It needs to be the cornerstone, yet for now there seems to be the global ‘understanding’ that someone is working on it, or that ‘block chain solves it’ and a few other hype responses that merely are deflections of a situation not understood and even less properly attended to. To better understand it, I found a promising paper (at https://arxiv.org/pdf/1708.04027.pdf) from Mohamed Amine Ferrag, Leandros Maglaras, Antonios Argyriou, Dimitrios Kosmanos, and Helge Janicke. In the conclusion we see: “Based on the vision for the next generation of connectivity, we proposed six open directions for future research about authentication and privacy-preserving schemes, namely, Fog paradigm-based 5G radio access network, 5G small cell-based smart grids, SDN/NFV-based architecture in 5G scenarios, dataset for intrusion detection in 5G scenarios, UAV systems in 5G environment, and 5G small cell-based vehicular crowd sensing“, which gets us to the real setting that this part is still some time ahead and even as telecoms are rushing to get 5G first to get the better market share, it appears that the players have no clue on the time they will lose by not properly investigating and setting the steps to get non-repudiation on the proper path, it will be seen the moment some CEO decided to listen to marketing and give a first roll out of 5G, whilst not listening to support as they are a cost and not an asset. At that point the situation will unfold where the clever hacker ends up having an optional access to 100% of the available data on several floors and at that point the people attached to any of that will have lost whatever choice they had in the first place regarding their privacy, their accounts and their data. It had all been denied to them.

This was seen in the Economist last year where we saw: “The flaw lies largely with the weakest link: the phone system and the humans who run it. Mr Mckesson and the bitcoin victim, for example, suffered at the hands of attackers who fooled phone-company employees into re-routing the victim’s phone number to a device in the attacker’s possession“. You see this is not about non-repudiation, it is about authentication and that is not the same. There is a whole league of issues and in part because the solution is still not a true given, it is in its initial stage and even as we accept that non-repudiation is sometimes essential, it is not always essential, there is a larger issue on where and when it is needed and it cannot be when the user decides because roughly 92.556% is too ignorant on the subject. The impact on a personal life can be too far stretched and that is where the problem starts. Telstra fails here, in their Cyber security White paper 2017 it comes up once and there we see: “Transaction approval should satisfy certain characteristics – including but not limited to integrity, non-repudiation and separation of duties“, that is it! In a ‘Cyber Security White Paper‘ that give s on the front page ‘Managing risk in a digital world‘, non-repudiation needs to have a much higher priority and in a 52 page paper that gives ‘acknowledgements’ all kinds of high priced firms mentioned in the end, with the ending of “We can assist your organisation to manage risk and meet your security requirements“, so what happens when customers want clear answers on non-repudiation? What is currently in play and available?

The non-acknowledgment that even, if not practised in 2017, or 2016, might be fine, this is about what comes next? That part we see on page 45 with ‘The increased adoption of incident response drives the growth of the after breach market‘ and “In Australia, the highest usage for emerging security solutions is in ‘incident response’, and Cloud Access Security Brokers (CASB) are used the most in Asia. 47 per cent of organisations surveyed in Australia and 55 per cent in Asia have adopted ‘incident response’ toolsets or services“, as well as “announcement of legislation around mandatory data breach notification by the Australian Government“, so how long until non-repudiation makes it to the main focal area? I reckon one incident too late, at that time Telstra becomes a ‘responsive telecom‘ nothing pro-active about it. When the first victim comes and the 99% realises that there is no actual non-repudiation properly in place, how many will remain with Telstra? And it is not merely them, a much larger global Telecom provider pool has that same flaw, the one who did think ahead will be gaining exponential growth the day after someone got hit and we have seen the growth of non-repudiation need for almost 4-5 years, so it is not coming out of the blue.

So, when we see the sales pitch called executive summary in the beginning, the mention of “That organisations are prepared to take such acknowledged risks speaks to the urgency of their move to cloud services“. So is non-repudiation addressed there? and the start of that page with “Organisations and individuals are dealing with new security and business opportunities, many of which are fuelled by mobility,” which of these sides are giving in that you and only you bought the 50,000,000 shares at $29.04 and the loss of 63.223% (roughly) we saw in the 45 seconds after that. At that point, or a boss that you and only you bought them, would that perhaps be good, bad, or perhaps was blaming a hacker the solution?

so in that report, where we saw ‘Mobile malware‘, ‘Advanced Persistent Threats‘ and ‘Web and application vulnerabilities‘; When we realise that the report gives us ‘Number of days compromise went undiscovered (median)‘ with the average value of 520 days (almost 18 months), would the flag that ‘not an employee’ had access helped perhaps in finding it sooner than 18 months?

It all read like a cloud sales paper as security is less complex. It does not solve the non-repudiation issue which would soon be at the footsteps of telecom companies and as they are in denial (for too long that something needs to be done, whomever solves it, that will be the winner of the 5G race and they will gain the 5G business from those claiming to have any non-repudiation and those who did not bother. It is not sexy, it is not limelight, but it will be the cornerstone of personal and corporate safety lot sooner than most people realise.

It all matters because flattening the organisation means that there is either space provision for that branch of security or it falls in the gaps and is forgotten until too late. Andy Penn can deflect all he can at that point (or his successor), but at that point the impact of such an event will be too devastating to respond to or correct for.

The issue remains complex, and if people remember the issues I have with Microsoft, will also accept the part I now give them, because one quote on this from Microsoft is bang on: “Can we say we have non-repudiation by putting a check in a box on a certificate template? Absolutely not, we must first jump through many hoops to be sure that only the owner of a private key associated with the certificate ever has access to it. This involves many controls, policies, procedures and security practices, some of which are listed above“, it is a much harder field, but an essential one and even as financial services are eager to embrace it, data handlers need to start doing this too.

We need to acknowledge that: ‘authentication is easy, non-repudiation is hard‘, and as 5G, automation and cloud systems evolve, the legal need for non-repudiation grows almost exponentially for every day that the three are active in a corporate and personal environment. Those who ignored that essential need end up having no legal foothold on any claim whatsoever. In my mind companies who ignored it will lose their IP and most legal options to get it back the moment it gets downloaded to another place. That IP will soon thereafter be owned by someone else, or it ends up in public domain where anyone can use it free of charge, both are nightmare scenarios for any firm relying on IP.

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Tagged as ABC, AFR, Andy Penn, Antonios Argyriou, Australia, Australian Financial Review, Business Insider, CASB, Cloud Access Security Brokers, CNET, Cyber Security White Paper, Dimitrios Kosmanos, FCC, Helge Janicke, Huawei Connect 2018: Activate Intelligence, Jessica Rosenworcel, Leandros Maglaras, Lessons from CES 2018: everything is connected, Microsoft, Mohamed Amine Ferrag, NBN Co, non-repudiation, Telstra, the Guardian, Tom Wheeler, Westfield Burwood

June 20, 2018 · 12:41

Telstra, NATO and the USA

There are three events happening, three events that made the limelight. Only two seem to have a clear connection, yet that is not true, they all link, although not in the way you might think.

Telstra Calling

The Guardian (at https://www.theguardian.com/business/2018/jun/20/telstra-to-cut-8000-jobs-in-major-restructure) starts with ‘Telstra to cut 8,000 jobs in major restructure‘. Larger players will restructure in one way or another at some point, and it seems that Telstra is going through the same phase my old company went through 20 years ago. The reason is simple and even as it is not stated as such, it boils down to a simple ‘too many captains on one ship‘. So cut the chaff and go on. It also means that Telstra would be able to hire a much stronger customer service and customer support division. Basically, it can cut the overhead and they can proclaim that they worked on the ‘costing’ side of the corporation. It is one way to think. Yet when we see: “It plans to split its infrastructure assets into a new wholly owned business unit in preparation for a potential demerger, or the entry of a strategic investor, in a post-national broadband network rollout world. The new business unit will be called InfraCo“. That is not a reorganisation that is pushing the bad debts and bad mortgages out of the corporation and let it (optionally) collapse. The congestion of the NBN alone warrants such a move, but in reality, the entire NBN mess was delayed for half a decade, whilst relying on technology from the previous generation. With 5G coming closer and closer Telstra needs to make moves and set new goals, it cannot do that without a much better customer service and a decently sized customer support division, from there on the consultants will be highly needed, so the new hiring spree will come at some stage. The ARNnet quote from last month: “Shares of Australia’s largest telco operator Telstra (ASX:TLS) tumbled to their lowest in nearly seven years on 22 May, after the firm was hit by a second major mobile network service outage in the space of a month“, does not come close to the havoc they face, it is not often where one party pisses off the shareholders, the stakeholders and the advertisers in one go, but Telstra pulled it off!

A mere software fault was blamed. This implies that the testing and Q&A stage has issues too, if there is going to be a Telstra 5G, that is not a message you want to broadcast. The problem is that even as some say that Telstra is beginning to roll out 5G now, we am afraid that those people are about to be less happy soon thereafter. You see, Telstra did this before with 4G, which was basically 3.5G, now we see the Business Insider give us ‘Telstra will roll out 2Gbps speeds across Australian CBDs within months‘, but 2Gbps and 10Gbps are not the same, one is merely 20%, so there! Oh, and in case you forgot the previous part. It was news in 2011 when ABC gave us (at http://www.abc.net.au/technology/articles/2011/09/28/3327530.htm) “It’s worth pointing out that that what Telstra is calling 4G isn’t 4G at all. What Telstra has deployed is 1800MHz LTE or 3GPP LTE that at a specification level should cap out at a download speed of 100Mb/s and upload speed of 50Mbps [ed: and the public wonders why we can’t just call it 4G?]. Telstra’s sensibly not even claiming those figures, but a properly-certified solution that can actually lay claim to a 4G label should be capable of downloads at 1 gigabit per second; that’s the official 4G variant known as LTE-A. Telstra’s equipment should be upgradeable to LTE-A at a later date, but for now what it’s actually selling under a ‘4G’ label is more like 3.7-3.8G. “3.7ish G” doesn’t sound anywhere near as impressive on an advertising billboard, though, so Telstra 4G it is“, which reflects the words of Jeremy Irons in Margin Call when he states: “You can be the best, you can be first or you can cheat“. I personally think that Telstra is basically doing what they did as reported in 2011 and they will market it as ‘5G’, giving premise to two of the elements that Jeremy Irons mentioned.

This now gives a different visibility to the SMH article last week (at https://www.smh.com.au/business/companies/how-a-huawei-5g-ban-is-about-more-than-espionage-20180614-p4zlhf.html), where we see “The expected ban of controversial Chinese equipment maker Huawei from 5G mobile networks in Australia on fears of espionage reads like a plot point from a John le Carre novel. But the decision will have an impact on Australia’s $40 billion a year telecoms market – potentially hurting Telstra’s rivals“, as well as “The Sydney Morning Herald and The Age reported in March that there were serious concerns within the Turnbull government about Huawei’s potential role in 5G – a new wireless standard that could be up to 10 times as powerful as existing mobile services, and used to power internet connections for a range of consumer devices beyond phones“, you see I do not read it like that. From my point of view I see “There are fears within the inner circle of Telstra friends that Huawei who is expected to offer actual 5G capability will hurt Telstra as they are not ready to offer anything near those capabilities. The interconnectivity that 5G offers cannot be done in the currently upgradable Telstra setting of a mere 2bps, which is 20% of what is required. Leaving the Telstra customers outside of the full range of options in the IoT in the near future, which will cost them loads of bonus and income opportunities“. This gives two parts, apart from Optus getting a much larger slice of the cake, the setting is not merely that the consumers and 5G oriented business is missing out, private firms can only move forward to the speed that Telstra dictates. So who elected Telstra as techno rulers? As for the entire Huawei being “accused of spying by lawmakers in the US“, is still unfounded as up to now no actual evidence has been provided by anyone, whilst at the same speed only a week ago, the Guardian gave us ‘Apple to close iPhone security gap police use to collect evidence‘, giving a clear notion that in the US, the police and FBI were in a stage where they were “allowed to obtain personal information from locked iPhones without a password, a change that will thwart law enforcement agencies that have been exploiting the vulnerability to collect evidence in criminal investigations“, which basically states that the US were spying on US citizens and people with an iPhone all along (or at least for the longest of times). It is a smudgy setting of the pot calling the kettle a tea muffler.

The fact that we are faced with this and we prefer to be spied on through a phone 50% cheaper is not the worst idea. In the end, data will be collected, it is merely adhering to the US fears that there is a stronger setting that all the collected data is no longer in the US, but in places where the US no longer has access. That seems to be the setting we are confronted with and it has always been the setting of Malcolm Turnbull to cater to the Americans as much as possible, yet in this case, how exactly does Australia profit? I am not talking about the 37 high and mighty Telstra ‘friends’. I am talking about the 24,132,557 other Australians on this Island, what about their needs? If only to allow them than to merely get by on paying bills and buying food.

Short term and short sighted

This gets us to something only thinly related, when we see the US situation in ‘Nato chief warns over future of transatlantic relationship‘. The news (at https://www.theguardian.com/world/2018/jun/19/transatlantic-relationship-at-risk-says-nato-chief) has actually two sides, the US side and the side of NATO. NATO is worried on being able to function at all. It is levied up to the forehead in debts and if they come to fruition, and it will they all drown and that requires the 27 block nation to drastically reduce defence spending. It is already trying to tailor a European defence force which is a logistical nightmare 6 ways from Sunday and that is before many realise that the communication standards tend to be a taste of ‘very nationally’ standard and not much beyond that point. In that regard the US was clever with some of their ITT solutions in 1978-1983. Their corn flaky phones (a Kellogg joke) worked quite well and they lasted a decent amount of time. In Europe, most nations were bound to the local provider act and as such there were all kinds of issues and they all had their own little issues. So even as we read: “Since the alliance was created almost 70 years ago, the people of Europe and North America have enjoyed an unprecedented period of peace and prosperity. But, at the political level, the ties which bind us are under strain“, yup that sounds nice, but the alliances are under strain by how Wall Street thinks the funding needs to go and Defence is not their first priority, greed is in charge, plain and simple. Now, to be fair, on the US side, their long term commitment to defence spending has been over the top and the decade following September 11 2001 did not help. The spending went from 10% of GDP up to almost 20% of GDP between 2001 and 2010. It is currently at about 12%, yet this number is dangerous as the economy collapsed in 2008, so it basically went from $60 billion to $150 billion, which hampered the infrastructure to no end. In addition we get the splashing towards intelligence consultants (former employees, who got 350% more when they turned private), so that expenditure became also an issue, after that we see a whole range of data gathering solutions from the verbose (and not too user friendly) MIIDS/IDB.

In CONUS (or as you might understand more clearly the contiguous United 48 States; without Alaska and Hawaii), the US Army Forces Command (FORSCOM) Automated Intelligence Support Activity (FAISA) at Fort Bragg, NC, has access to the MIIDS and IDB by tactical users of the ASAS, and they maintain a complete copy of DIA’s MIIDS and IDB and update file transactions in order to support the tactical user. So there are two systems (actually there are more) and when we realise that the initial ASAS Block I software does not allow for direct access from ASAS to the FAISA System. So, to accomplish file transfer of MIIDS and IDB files, we are introduced to a whole range of resources to get to the data, the unit will need an intermediate host(s) on the LAN that will do the job. In most cases, support personnel will accomplish all the file transfers for the unit requesting that intel. Now consider 27 national defence forces, one European one and none of them has a clue how to get one to the other. I am willing to wager $50 that it will take less than 10 updates for data to mismatch and turn the FAISA system into a FAUDA (Arabic for chaos) storage system, with every update taking more and more time until the update surpasses the operational timeframe. That is ample and to the point as there is a growing concern to have better ties with both Israel and Saudi Arabia, what a lovely nightmare for the NSA as it receives (optionally on a daily basis) 9 updates all containing partially the same data (Army-Navy, Army-Air force, Army-Marines, Navy-Air force, Navy-Marines, Air force-Marines, DIA, DHS and Faisa HQ). Yes, that is one way to keep loads of people employed, the cleaning and vetting of data could require an additional 350 hours a day in people to get the vetting done between updates and packages. In all this we might see how it is about needing each other, yet the clarity for the US is mostly “Of the 29 Nato members, only eight, including the US and the UK, spend more than 2% of their GDP on defence, a threshold that the alliance agreed should be met by all the countries by 2024. Germany spent €37bn (£32.5bn), or 1.2% of GDP, on defence last year“, it amounts to the US dumping billions in an area where 28 members seem to have lost the ability to agree to standards and talk straight to one another (a France vs Germany pun). In all this there is a larger issue, but we will now see that in part three

Sometimes a cigar is an opportunity

you see, some saw the “‘Commie cadet’ who wore Che Guevara T-shirt kicked out of US army” as an issue instead of an opportunity. The article (at https://www.theguardian.com/us-news/2018/jun/19/west-point-commie-cadet-us-army-socialist-views-red-flags) gives light to some sides, but not to the option that the US basically threw out of the window. You see the Bill of rights, a mere piece of parchment that got doodled in 1789 offering things like ‘freedom to join a political party‘, as we see the setting at present. The issue as I see it is the overwhelming hatred of Russia that is in play. Instead of sacking the man, the US had an opportunity to use him to see if a dialogue with Cuba could grow into something stronger and better over time. It might work, it might not, but at least there is one person who had the option to be the messenger between Cuba and the US and that went out of the window in a heartbeat. So when we see: “Spenser Rapone said an investigation found he went online to advocate for a socialist revolution and disparage high-ranking officers and US officials. The army said in a statement only that it conducted a full investigation and “appropriate action was taken”“. Was there a full investigation? To set this in a proper light, we need to look at NBC (at https://www.nbcnews.com/news/us-news/sexual-assault-reports-u-s-military-reach-record-high-pentagon-n753566), where we see: “Service members reported 6,172 cases of sexual assault in 2016 compared to 6,082 last year, an annual military report showed. This was a sharp jump from 2012 when 3,604 cases were reported“, we all should realise that the US defence forces have issues, a few a hell of a lot bigger than a person with a Che Guevara T-Shirt. So when we ask for the full investigations reports of 6172 cases, how many have been really investigated, or prosecuted on? NBC reported that “58 percent of victims experienced reprisals or retaliation for reporting sexual assault“, so how exactly were issues resolved?

Here we see the three events come together. There is a flawed mindset at work, it is flawed through what some might call deceptive conduct. We seem to labels and when it backfires we tend to see messages like ‘there were miscommunications hampering the issues at hand‘, standards that cannot be agreed on, or after there was an agreement the individual players decide to upgrade their national documents and hinder progress. How is that ever going to resolve issues? In all this greed and political needs seem to hinder other avenues though players that should not even be allowed to have a choice in the matter. It is the setting where for close to decades the politicians have painted themselves into a corner and are no longer able to function until a complete overhaul is made and that is the problem, a solution like that costs a serious amount of funds, funds that are not available, not in the US and not in Europe. The defence spending that cannot happen, the technology that is not what is specified and marketing will merely label it into something that it is not, because it is easier to sell that way. A failing on more than one level and by the time we are all up to speed, the others (read: Huawei) passed us by because they remained on the ball towards the required goal.

So as we are treated to: “A parliamentary hearing in Sydney got an extra touch of spice yesterday, after the chief executive of NBN Co appeared to finger one group of users supposedly responsible for congestion on NBN’s fixed wireless network: gamers“, whilst the direct setting given is “Online gaming requires hardly any bandwidth ~10+ megabytes per hour. A 720p video file requires ~ 500+ megabytes per hour. One user watching a YouTube video occupies the same bandwidth as ~50 video gamers“, we can argue who is correct, yet we forgot about option 3. As was stated last week we see that the largest two users of online games were Counterstrike (250MB/hour) add Destiny 2 (300 MB/hour), whilst the smallest TV watcher ABC iView used the same as Destiny 2, the rest a multitude of that, with Netflix 4K using up to 1000% of what gamers used (in addition to the fact that there are now well over 7.5 million Netflix users, whilst the usage implies that to be on par, we need 75 million gamers, three times the Australian population). Perhaps it is not the gamers, but a system that was badly designed from the start. Political interference in technology has been a detrimental setting in the US, Europe and Australia as well, the fact that politicians decide on ‘what is safe‘ is a larger issue when you put the issues next to one another. If we openly demand that the US reveal the security danger that Huawei is according to them, will they remain silent and let a ‘prominent friend‘ of Telstra speak?

When we look one tier deeper into NATO, they themselves become the source (at https://www.nato-pa.int/document/2018-defence-innovation-capitalising-natos-science-and-technology-base-draft-report) with: ‘Capitalising on Nato’s Science and Technology Base‘. Here we see on page 5: “In an Alliance of sovereign states, the primary responsibility to maintain a robust defence S&T base and to discover, develop and adopt cutting-edge defence technologies lies with NATO member states themselves. Part of the answer lies in sufficient defence S&T and R&D budgets“. It is the part where we see: ‘adopt cutting-edge defence technologies lies with NATO member states themselves‘ as well as ‘sufficient defence S&T and R&D budgets‘. You introduce me to a person that shows a clear partnership between the needs of Philips (Netherlands) and Siemens (Germany) and I will introduce you to a person who is knowingly miscommunicating the hell out of the issue. You only need to see the 2016 financial assessment: “After divesting most of its former businesses, Philips today has a unique portfolio around healthy lifestyle and hospital solutions. Unlike competitors like GE Healthcare and Siemens Healthineers, the company covers the entire health continuum” and that is merely one field.

Rubber Duck closing in on small Destroyer.

In that consider a military equivalent. The 5^th best registered CIWS solution called MK15 Phalanx (US), the 3^rd position is for the Dutch Goalkeeper (Thales Netherlands) and the 2^nd best CIWS solution comes from the US with the Raytheon SeaRAM. Now we would expect every nationality would have its own solution, yet we see the SeaRAM was only adopted by Germany, why is it not found in the French, Italian, Spanish and Canadian navy? Belgium has the valid excuse that the system is too large for their RIB and Dinghy fleet, but they are alone there. If there is to be true connectivity and shared values, why is this not a much better and better set partnership? Now, I get that the Dutch are a proud of their solution, yet in that entire top list of CIWS systems, a larger group of NATO members have nothing to that degree at all. So is capitalising in the title of the NATO paper actually set to ‘gain advantage from‘, or is it ‘provide (someone) with capital‘? Both are options and the outcome as well as the viability of the situation depending on which path you take. So are the Australians losing advantage from Telstra over Huawei, or are some people gaining huge lifestyle upgrades as Huawei is directed to no longer be an option?

I will let you decide, but the settings are pushing all boundaries and overall the people tend to not benefit, unless you work for the right part of Palantir inc, at which point your income could double between now and 2021.

2018 – DEFENCE INNOVATION – ALLESLEV DRAFT REPORT – 078 STC 18 E

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Tagged as 5G, ASAS, Automated Intelligence Support Activity, Che Guevara, CONUS, Cuba, Defense Spending, DHS, DIA, FORSCOM, Ft Bragg, Huawei, IoT, iPhone, Israel, ITT, Jeremy Irons, Margin Call, MIIDS/IDB, MK15 Phalanx, NATO, NSA, Optus, Philips, Raytheon, Raytheon SeaRAM, Saudi Arabia, Siemens, SMH, Spenser Rapone, Sydney Morning Herald, Telstra, Thales Netherlands, the Guardian

June 16, 2018 · 13:04

Ghost in the Deus Ex Machina

James Bridle is treating the readers of the Guardian to a spotlight event. It is a fantastic article that you must read (at https://www.theguardian.com/books/2018/jun/15/rise-of-the-machines-has-technology-evolved-beyond-our-control-?). Even as it starts with “Technology is starting to behave in intelligent and unpredictable ways that even its creators don’t understand. As machines increasingly shape global events, how can we regain control?” I am not certain that it is correct; it is merely a very valid point of view. This setting is being pushed even further by places like Microsoft Azure, Google Cloud and AWS we are moving into new territories and the experts required have not been schooled yet. It is (as I personally see it) the consequence of next generation programming, on the framework of cloud systems that have thousands of additional unused, or un-monitored parameters (read: some of them mere properties) and the scope of these systems are growing. Each developer is making their own app-box and they are working together, yet in many cases hundreds of properties are ignored, giving us weird results. There is actually (from the description James Bridle gives) an early 90’s example, which is not the same, but it illustrates the event.

A program had windows settings and sometimes there would be a ghost window. There was no explanation, and no one could figure it out why it happened, because it did not always happen, but it could be replicated. In the end, the programmer was lazy and had created a global variable that had the identical name as a visibility property and due to a glitch that setting got copied. When the system did a reset on the window, all but very specific properties were reset. You see, those elements were not ‘true’, they should be either ‘true’ or ‘false’ and that was not the case, those elements had the initial value of ‘null’ yet the reset would not allow for that, so once given a reset they would not return to the ‘null’ setting but remain to hold the value it last had. It was fixed at some point, but the logic remains, a value could not return to ‘null’ unless specifically programmed. Over time these systems got to be more intelligent and that issue had not returned, so is the evolution of systems. Now it becomes a larger issue, now we have systems that are better, larger and in some cases isolated. Yet, is that always the issue? What happens when an error level surpasses two systems? Is that even possible? Now, moist people will state that I do not know what I am talking about. Yet, they forgot that any system is merely as stupid as the maker allows it to be, so in 2010 Sha Li and Xiaoming Li from the Dept. of Electrical and Computer Engineering at the University of Delaware gave us ‘Soft error propagation in floating-point programs‘ which gives us exactly that. You see, the abstract gives us “Recent studies have tried to address soft errors with error detection and correction techniques such as error correcting codes and redundant execution. However, these techniques come at a cost of additional storage or lower performance. In this paper, we present a different approach to address soft errors. We start from building a quantitative understanding of the error propagation in software and propose a systematic evaluation of the impact of bit flip caused by soft errors on floating-point operations“, we can translate this into ‘A option to deal with shoddy programming‘, which is not entirely wrong, but the essential truth is that hardware makers, OS designers and Application makers all have their own error system, each of them has a much larger system than any requires and some overlap and some do not. The issue is optionally speculatively seen in ‘these techniques come at a cost of additional storage or lower performance‘, now consider the greed driven makers that do not want to sacrifice storage and will not handover performance, not one way, not the other way, but a system that tolerates either way. Yet this still has a level one setting (Cisco joke) that hardware is ruler, so the settings will remain and it merely takes one third party developer to use some specific uncontrolled error hit with automated assumption driven slicing and dicing to avoid storage as well as performance, yet once given to the hardware, it will not forget, so now we have some speculative ‘ghost in the machine’, a mere collection of error settings and properties waiting to be interacted with. Don’t think that this is not in existence, the paper gives a light on this in part with: “some soft errors can be tolerated if the error in results is smaller than the intrinsic inaccuracy of floating-point representations or within a predefined range. We focus on analysing error propagation for floating-point arithmetic operations. Our approach is motivated by interval analysis. We model the rounding effect of floating-point numbers, which enable us to simulate and predict the error propagation for single floating-point arithmetic operations for specific soft errors. In other words, we model and simulate the relation between the bit flip rate, which is determined by soft errors in hardware, and the error of floating-point arithmetic operations“. That I can illustrate with my earliest errors in programming (decades ago). With Borland C++ I got my first taste of programming and I was in assumption mode to make my first calculation, which gave in the end: 8/4=2.0000000000000003, at that point (1991) I had no clue about floating point issues. I did not realise that this was merely the machine and me not giving it the right setting. So now we all learned that part, we forgot that all these new systems all have their own quirks and they have hidden settings that we basically do not comprehend as the systems are too new. This now all interacts with an article in the Verge from January (at https://www.theverge.com/2018/1/17/16901126/google-cloud-ai-services-automl), the title ‘Google’s new cloud service lets you train your own AI tools, no coding knowledge required‘ is a bit of a giveaway. Even when we see: “Currently, only a handful of businesses in the world have access to the talent and budgets needed to fully appreciate the advancements of ML and AI. There’s a very limited number of people that can create advanced machine learning models”, it is not merely that part, behind it were makers of the systems and the apps that allow you to interface, that is where we see the hidden parts that will not be uncovered for perhaps years or decades. That is not a flaw from Google, or an error in their thinking. The mere realisation of ‘a long road ahead if we want to bring AI to everyone‘, that in light of the better programmers, the clever people and the mere wildcards who turn 180 degrees in a one way street cannot be predicted and there always will be one that does so, because they figured out a shortcut. Consider a sidestep

A small sidestep

When we consider risk based thinking and development, we tend to think in opposition, because it is not the issue of Risk, or the given of opportunity. We start in the flaw that we see differently on what constitutes risk. Even as the makers all think the same, the users do not always behave that way. For this I need to go back to the late 80’s when I discovered that certain books in the Port of Rotterdam were cooked. No one had figured it out, but I recognised one part through my Merchant Naval education. The one rule no one looked at in those days, programmers just were not given that element. In a port there is one rule that computers could not comprehend in those days. The concept of ‘Idle Time’ cannot ever be a linear one. Once I saw that, I knew where to look. So when we get back to risk management issues, we see ‘An opportunity is a possible action that can be taken, we need to decide. So this opportunity requires we decide on taking action and that risk is something that actions enable to become an actual event to occur but is ultimately outside of your direct control‘. Now consider that risk changes by the tide at a seaport, but we forgot that in opposition of a Kings tide, there is also at times a Neap tide. A ‘supermoon’ is an event that makes the low tide even lower. So now we see the risk of betting beached for up to 6 hours, because the element was forgotten. the fact that it can happen once every 18 months makes the risk low and it does not impact everyone everywhere, but that setting shows that once someone takes a shortcut, we see that the dangers (read: risks) of events are intensified when a clever person takes a shortcut. So when NASA gives us “The farthest point in this ellipse is called the apogee. Its closest point is the perigee. During every 27-day orbit around Earth, the Moon reaches both its apogee and perigee. Full moons can occur at any point along the Moon’s elliptical path, but when a full moon occurs at or near the perigee, it looks slightly larger and brighter than a typical full moon. That’s what the term “supermoon” refers to“. So now the programmer needed a space monkey (or tables) and when we consider the shortcut, he merely needed them for once every 18 months, in the life cycle of a program that means he merely had a risk 2-3 times during the lifespan of the application. So tell me, how many programmers would have taken the shortcut? Now this is the settings we see in optional Machine Learning. With that part accepted and pragmatic ‘Let’s keep it simple for now‘, which we all could have accepted in this. But the issue comes when we combine error flags with shortcuts.

So we get to the guardian with two parts. The first: “Something deeply weird is occurring within these massively accelerated, opaque markets. On 6 May 2010, the Dow Jones opened lower than the previous day, falling slowly over the next few hours in response to the debt crisis in Greece. But at 2.42pm, the index started to fall rapidly. In less than five minutes, more than 600 points were wiped off the market. At its lowest point, the index was nearly 1,000 points below the previous day’s average“, the second being “In the chaos of those 25 minutes, 2bn shares, worth $56bn, changed hands. Even more worryingly, many orders were executed at what the Securities Exchange Commission called “irrational prices”: as low as a penny, or as high as $100,000. The event became known as the “flash crash”, and it is still being investigated and argued over years later“. In 8 years the algorithm and the systems have advanced and the original settings no longer exist. Yet the entire setting of error flagging and the use of elements and properties are still on the board, even as they evolved and the systems became stronger, new systems interacted with much faster and stronger hardware changing the calculating events. So when we see “While traders might have played a longer game, the machines, faced with uncertainty, got out as quickly as possible“, they were uncaught elements in a system that was truly clever (read: had more data to work with) and as we are introduced to “Among the various HFT programs, many had hard-coded sell points: prices at which they were programmed to sell their stocks immediately. As prices started to fall, groups of programs were triggered to sell at the same time. As each waypoint was passed, the subsequent price fall triggered another set of algorithms to automatically sell their stocks, producing a feedback effect“, the mere realisation that machine wins every time in a man versus machine way, but only toward the calculations. The initial part I mentioned regarding really low tides was ignored, so as the person realises that at some point the tide goes back up, no matter what, the machine never learned that part, because the ‘supermoon cycle’ was avoided due to pragmatism and we see that in the Guardian article with: ‘Flash crashes are now a recognised feature of augmented markets, but are still poorly understood‘. That reason remains speculative, but what if it is not the software? What if there is merely one set of definitions missing because the human factor auto corrects for that through insight and common sense? I can relate to that by setting the ‘insight’ that a supermoon happens perhaps once every 18 months and the common sense that it returns to normal within a day. Now, are we missing out on the opportunity of using a Neap Tide as an opportunity? It is merely an opportunity if another person fails to act on such a Neap tide. Yet in finance it is not merely a neap tide, it is an optional artificial wave that can change the waves when one system triggers another, and in nano seconds we have no way of predicting it, merely over time the option to recognise it at best (speculatively speaking).

We see a variation of this in the Go-game part of the article. When we see “AlphaGo played a move that stunned Sedol, placing one of its stones on the far side of the board. “That’s a very strange move,” said one commentator“, you see it opened us up to something else. So when we see “AlphaGo’s engineers developed its software by feeding a neural network millions of moves by expert Go players, and then getting it to play itself millions of times more, developing strategies that outstripped those of human players. But its own representation of those strategies is illegible: we can see the moves it made, but not how it decided to make them“. That is where I personally see the flaw. You see, it did not decide, it merely played every variation possible, the once a person will never consider, because it played millions of games , which at 2 games a day represents 1,370 years the computer ‘learned’ that the human never countered ‘a weird move’ before, some can be corrected for, but that one offers opportunity, whilst at the same time exposing its opponent to additional risks. Now it is merely a simple calculation and the human loses. And as every human player lacks the ability to play for a millennium, the hardware wins, always after that. The computer never learned desire, or human time constraints, as long as it has energy it never stops.

The article is amazing and showed me a few things I only partially knew, and one I never knew. It is an eye opener in many ways, because we are at the dawn of what is advanced machine learning and as soon as quantum computing is an actual reality we will get systems with the setting that we see in the Upsilon meson (Y). Leon Lederman discovered it in 1977, so now we have a particle that is not merely off or on, it can be: null, off, on or both. An essential setting for something that will be close to true AI, a new way of computers to truly surpass their makers and an optional tool to unlock the universe, or perhaps merely a clever way to integrate hardware and software on the same layer?

What I got from the article is the realisation that the entire IT industry is moving faster and faster and most people have no chance to stay up to date with it. Even when we look at publications from 2 years ago. These systems have already been surpassed by players like Google, reducing storage to a mere cent per gigabyte and that is not all, the media and entertainment are offered great leaps too, when we consider the partnership between Google and Teradici we see another path. When we see “By moving graphics workloads away from traditional workstations, many companies are beginning to realize that the cloud provides the security and flexibility that they’re looking for“, we might not see the scope of all this. So the article (at https://connect.teradici.com/blog/evolution-in-the-media-entertainment-industry-is-underway) gives us “Cloud Access Software allows Media and Entertainment companies to securely visualize and interact with media workloads from anywhere“, which might be the ‘big load’ but it actually is not. This approach gives light to something not seen before. When we consider makers from software like Q Research Software and Tableau Software: Business Intelligence and Analytics we see an optional shift, under these conditions, there is now a setting where a clever analyst with merely a netbook and a decent connection can set up the work frame of producing dashboards and result presentations from that will allow the analyst to produce the results and presentations for the bulk of all Fortune 500 companies in a mere day, making 62% of that workforce obsolete. In addition we see: “As demonstrated at the event, the benefits of moving to the cloud for Media & Entertainment companies are endless (enhanced security, superior remote user experience, etc.). And with today’s ever-changing landscape, it’s imperative to keep up. Google and Teradici are offering solutions that will not only help companies keep up with the evolution, but to excel and reap the benefits that cloud computing has to offer“. I take it one step further, as the presentation to stakeholders and shareholders is about telling ‘a story’, the ability to do so and adjust the story on the go allows for a lot more, the question is no longer the setting of such systems, it is not reduced to correctly vetting the data used, the moment that falls away we will get a machine driven presentation of settings the machine need no longer comprehend, and as long as the story is accepted and swallowed, we will not question the data. A mere presented grey scale with filtered out extremes. In the end we all signed up for this and the status quo of big business remains stable and unchanging no matter what the economy does in the short run.

Cognitive thinking from the AI thought the use of data, merely because we can no longer catch up and in that we lose the reasoning and comprehension of data at the high levels we should have.

I wonder as a technocrat how many victims we will create in this way.

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Tagged as AI, AlphaGo, Borland, google, James Bridle, Kings tide, Leon Lederman, Machine learning, NASA, Neap tide, Q Research Software, Sha Li, Tableau Software, Teradici, the Guardian, University of Delaware, Upsilon meson, Xiaoming Li

June 14, 2018 · 11:33

Why would we care?

New York is all up in sixes and sevens, even as they aren’t really confused, some are not seeing the steps that are following and at this point giving $65 billion for 21st Century Fox is not seen in the proper light. You see, Comcast has figured something out, it did so a little late (an assumption), but there is no replacement for experience I reckon. Yet, they are still on time to make the changes and it seems that this is the path they will be walking on. So when we see ‘Comcast launches $65bn bid to steal Murdoch’s Fox away from Disney‘, there are actually two parties to consider. The first one is Disney. Do they realise what they are walking away from? Do they realise the value they are letting go? Perhaps they do and they have decided not to walk that path, which is perfectly valid. The second is the path that Comcast is implied to be walking on. Is it the path that they are planning to hike on, or are they merely setting the path for facilitation and selling it in 6-7 years for no less than 300% of what it is now? Both perfectly valid steps and I wonder which trajectory is planned, because the shift is going to be massive.

To get to this, I will have to admit my own weakness here, because we all have filters and ignoring them is not only folly, it tends to be an anchor that never allows us to go forward. You see, in my view the bulk of the media is a collection of prostitutes. They cater in the first to their shareholders, then there stakeholders and lastly their advertisers. After that, if there are no clashes, the audience is given consideration. That has been the cornerstone of the media for at least 15 years. Media revolves around circulation, revenue and visibility, whatever is left is ‘pro’ reader, this is why you see the public ‘appeal’ to be so emotionally smitten, because when it is about emotion, we look away, we ignore or we agree. That is the setting we all face. So when a step like this is taken, it will be about the shareholders, which grows when the proper stakeholders are found, which now leads to advertising and visibility. Yet, how is this a given and why does it matters? The bottom dollar will forever be profit. Now from a business sense that is not something to argue with, this world can only work on the foundation of profit, we get that, yet newspapers and journalism should be about proper informing the people, and when did that stop? Nearly every paper has investigative journalism, the how many part is more interesting. I personally belief that Andrew Jennings might be one of the last great investigative journalists. It is the other side of the coin that we see ignored, it is the one that matters. The BBC (at https://www.bbc.co.uk/programmes/b06tkl9d) gives us: “Reporter Andrew Jennings has been investigating corruption in world football for the past 15 years“, the question we should ask is how long and how many parties have tried to stop this from becoming public, and how long did it take Andrew Jennings to finally win and this is just ONE issue. How many do not see the light of day? We look at the Microsoft licensing corruption scandal and we think it is a small thing. It is not, it was a lot larger. Here I have a memory that I cannot prove, it was in the newspapers in the Netherlands. On one day there was a small piece regarding the Buma/Stemra and the setting of accountancy reports on the overuse of Microsoft licenses in governments and municipality buildings and something on large penalty fees (it would have been astronomical). Two days later another piece was given that the matter had been resolved. The question becomes was it really? I believe that someone at Microsoft figured out that this was the one moment where on a national level a shift to Linux would have been a logical step, something Microsoft feared very very much. Yet the papers were utterly silent on many levels and true investigation never took place and after the second part, some large emotional piece would have followed.

That is the issue that I have seen and we all have seen these events, we merely wiped it from our minds as other issues mattered more (which is valid). So I have no grate faith (pun intended) into the events of ‘exposure‘ from the media. Here it is not about that part, but the parts that are to come. Comcast has figured out a few things and 21st Century Fox is essential to that. To see that picture, we need to look at another one, so it is a little more transparent. It also shows where IBM, Google, Apple and some telecom companies are tinkering now.

To see this we need to look at this first image and see what there is, it is all tag based, all data and all via mobile and wireless communication. Consider these elements; over 90% of car owners will have them: ‘Smart Mobility, Smart Parking and Traffic priority‘. Now consider the people who are not homeless: ‘Smart grids, Utility management, hose management like smart fridges, smart TV and data based entertainment (Netflix)‘ and all those having smart house devices running on what is currently labelled as Domotics, it adds up to Megabytes of data per household per day. There will be a run on that data from large supermarket to Netflix providers. Now consider the mix between Comcast and 21 Century Fox. Breaking news, new products and new solutions to issues you do not even realise in matters of eHealth, road (traffic) management and the EU set 5G Joint-Declarations in 2015, with Japan, China, Korea and Brazil. The entire Neom setup in Saudi Arabia gives way that they will soon want to join all this, or whoever facilitates for the Middle East and Saudi Arabia will. In all this with all this technology, America is not mentioned, is that not a little too strange? Consider that the given 5G vision is to give ‘Full commercial 5G infrastructure deployment after 2020‘ (expected 2020-2023).

With a 740 million people deployed, and all that data, do you really think the US is not wanting a slice of data that is three times the American population? This is no longer about billions, this will be about trillions, data will become the new corporate and governmental currency and all the larger players want to be on board. So is Disney on the moral high path, or are the requirements just too far from their own business scope? It is perhaps a much older setting that we see when it is about consumer versus supplier. We all want to consume milk, yet most of us are not in a setting where we can be the supplier of milk, having a cow on the 14^th floor of an apartment tends to be not too realistic in the end. We might think that it is early days, yet systems like that require large funds and years to get properly set towards the right approach for deployment and implementation. In this an American multinational mass media corporation would fit nicely in getting a chunk of that infrastructure resolved. consider a news media tagging all the watchers on data that passes them by and more importantly the data that they shy away from, it is a founding setting in growing a much larger AI, as every AI is founded on the data it has and more important the evolving data as interaction changes and in this 5G will have close to 20 times the options that 4G has now and in all this we will (for the most) merely blindly accept data used, given and ignored. We saw this earlier this year when we learned that “Facebook’s daily active user base in the U.S. and Canada fell for the first time ever in the fourth quarter, dropping to 184 million from 185 million in the previous quarter“, yet the quarter that followed the usage was back to 185 million users a day. So the people ended up being ‘very’ forgiving, it could be stated that they basically did not care. Knowing this setting where the bump on the largest social media data owner was a mere 0.5405%; how is this path anything but a winning path with an optional foundation of trillions in revenue? There is no way that the US, India, Russia and the commonwealth nations are not part of this. Perhaps not in some 5G Joint-Declarations, but they are there and the one thing Facebook clearly taught them was to be first, and that is what they are all fighting for. The question is who will set the stage by being ahead of schedule with the infrastructure in place and as I see it, Comcast is making an initial open move to get into this field right and quick. Did you think that Google was merely opening 6 data centres, each one large enough to service the European population for close to 10 years? And from the Wall Street journal we got: “Google’s parent company Alphabet is eyeing up a partnership with one of the world’s largest oil companies, Aramco, to aid in the erection of several data centres across the Middle Eastern kingdom“, if one should be large enough to service 2300% of the Saudi Arabian population for a decade, the word ‘several‘ should have been a clear indication that this is about something a lot larger. Did no one catch up on that small little detail?

In that case, I have a lovely bridge for sale, going cheap at $25 million with a great view of Balmain, first come, first serve, and all responsibilities will be transferred to you the new predilector at the moment of payment. #ASuckerIsBornEachMinute

Oh, and this is not me making some ‘this evil Google‘ statement, because they are not. Microsoft, IBM, and several others are all in that race; the AI is merely the front of something a lot larger. Especially when you realise that data in evolution (read: in real-time motion) is the foundation of its optional cognitive abilities. The data that is updated in real-time, that is the missing gem and 5G is the first setting where that is the set reality where it all becomes feasible.

So why would we care? We might not, but we should care because we are the foundation of all that IP and it will no longer be us. It gives value to the users and consumes, whilst those who are not are no longer deemed of any value, that is not the future, it is the near future and the founding steps for this becoming an actual reality is less than 60 months away.

In the end we might have merely cared too late, how is that for the obituary of any individual?

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Tagged as 'Smart Mobility, 21st Century Fox, 5G, Andrew Jennings, Apple, Balmain, BBC, Brazil, Buma/Stemra, China, Comcast, Disney, domotics, Eu, Fox studios, google, IBM, Japan, Korea, Microsoft, NEOM, Saudi Arabia, Smart Parking

June 12, 2018 · 14:51

Where we are in gaming

So the E3 is almost done. I saw the EA bit, I was blown away by Bethesda where they ended the presentation with 13.2 seconds announcing the Elder Scrolls VI. A mere teaser, but what a teaser, the crowd went insane on the spot (me included). I reckon that it will be a 2019 release and we will hear a lot more after the release of Fallout 76 later this year. When it comes to Fallout 76 it will be a lot bigger than ever before. It allows for single play, friends play and multiplay. That is merely the first part, the second part is that Fallout 76 is announced to be 4 times the size of Fallout 4, so any Bethesda fan expecting to be well rested by Christmas better start buying stocks and options in Red Bull, as they will need it and lots of it.

There was a lot more announced, most importantly the setting of a new free game, called Blades, an elder scrolls version of Fallout shelter, a very different one, Bethesda went one step further where the game is fully playable in portrait and landscape mode, the view on the game made me desire an immediate update to my mobile (which is falling apart anyway). In addition, Fallout Shelter became available at that point for both PS4 and Nintendo Switch. So Bethesda is not sitting still and a lot of it at no cost at all, showing a level of gamer care that we have not seen to this level before. Bethesda blew us away with the upcoming DLC’s, updates and new games. After that it was time for Microsoft. I have had issues with Microsoft and they are still growing, yet the presentation given was really good. Phil Spencer knows his shit and that of many other players in this field. He knows what it is about and as we saw all kinds of ‘world premieres’, it relied to some degree on both Bethesda and Ubisoft to give some of the goods, but that was not all. I stated it before, I am not a racing fan, but Forza 7 blew me away, it was astounding to see, so I was not ready for what happened next. If Forza 7 is set at as a 90%-91% game, the upcoming Forza Horizons 4 is getting us straight to the 100% mark. They really outdid themselves there. It is set in historical England, all of England and if you think that Forza 7 had the goods, seeing seasons and weather set into the driving, seeing every place go through the 4 seasons, you will see something totally unique and there is no doubt that if it holds up on the Xbox One X on 4K and 60fps, you are in for a treat, even a non-racing fan like me can see that this is something totally new. There were also announcements on gaming houses and developers bought as well as some of the indie developers who are showing excellent products. Phil Spencer is making waves; he is not out of the woods as he has to clean up the mess of two predecessors, so he has his work cut out for him. There was also a less nice part. They did in many cases give not any release date, merely ‘pre-order it at the Microsoft store‘. I personally believe that this is the Microsoft path, a path that was dangerous and I accused them for not being in consideration of gamers. There was more. You see, Microsoft is moving to take the shops out of the equation. They were doing it to some extent (poorly I might add), yet now when we consider Gamerpass “Xbox Game Pass launched back in June, and provides access to more than 100 Xbox One and Xbox 360 games for $10.95 per month“, before you think that this is a lot, consider that you get access to 100 games, with the announced NEW games, we got that it will include the next Halo, Gears of War, and Forza on launch day. So that is a massive teaser, yet I am also scared of the intentions of Microsoft. I have seen this before. You see, TechAU gave away the speculated goods with “selling games is no longer an option. With console hard drive storage sizes increasing to 1-2TB, its possible we need to rethink game ownership completely. The big question will be the games available. If they’re all games from 6-12 months ago, it may still be seen as a good opportunity to play a bunch of games you meant to buy, but never got around to it“, if only it was true, because they already dropped the ball twice on that one. You see, I saw a similar play in the late 80’s by The Evergreen Group, they had government backing and undercut the competition for years, after that when the bulk was gone, the prices went back up and they were close to the only player remaining. It seems that Microsoft is on a similar path and when we saw the Faststart part I got a second jolt of worry, with the stating that they used machine learning to see how gamers play. This implies the profiling of all players, so when exactly did you as a gamer agree to that? You see, when this becomes personalised, it is not about the average player, this is about you as the individual player and I personally believe that the push ‘to pre-order at the Microsoft store‘ is not merely marketing, it is about pushing for online only and take the shops out of the equation. It makes sense from a business point of view, yet you end up with the only IP, the ones they allow you to have, for whatever time you end up having it. I never signed up for that, and even if we love the offering they give for now. When the shops can no longer support this theory, what happens then? How will you feel in 5 years when your IP is based on a monthly rental? It is a dangerous part and for now you think it does not matter, but it does, you see the earlier quote ‘With console hard drive storage sizes increasing to 1-2TB‘, yet the Xbox One X is merely 1TB, so there is that already, then we realise that the 1 TB merely gets you 800 GB (OS and other spaces reserved), so now we see that the previous Gears of War was 103.12 GB, implies that with one game installed, you are down to less than 70%, now add Halo 5: Guardians (97.53GB) and Forza 7 (100GB). So, only 3 games and 50% of the total drive space is gone (those mentioned games were the largest ones).

So when I see the mention of space for 12 games, I wonder how correct it is. Now consider the announced games like Fallout 76, the Division 2, Beyond Good and Evil 2 and wonder what will be left. People will wake up much to soon as they have to reorganise their console drives, way too early in 2018. Consider, not just the games, but the patches as well. Now you start seeing the dangers you as a gamer face. The moment that 120 million gamers start working in an online setting (PS4, XB1 and Switch), how long until the telecom bandwidth prices go up? How affordable will gaming remain? For now it looks great, but the bandwidth fountain will be soured, the impact is not short term when it hits, and the impact will be too great to consider for now and the Telco companies have not even considered the dangers, only their option towards optional revenue. There is supporting evidence. In Australia, its fun loving product called NBN had 27,000 complaints last year alone. If the old setting for every complaints 5 people did not bother, we see a much larger issue. With issues like outage and slow data speeds one number (source: ABC) gives us that at present the growth of 160% of complaints ‘equated to 1 per cent of the activated premises‘, how is that to sit in whilst downloading 100 Gb for your Xbox One X, and that is merely Australia. In places like London in full setting congestion will be a normal thing to worry about. So when we see “Julie Waites said her 85-year-old mother Patricia Alexander has been without a working phone at her Redcliffe home, north of Brisbane, since June when the NBN was connected in the area“, which we see 4 months after the event, there is a much larger issue and Microsoft did not consider the global field, an error they made a few times before and that is the setting that gamers face, So when your achievements are gone because for too long there was an internet issue, consider where your hard earned achievements went off to. I am certain that it is not all Microsoft’s fault, but its short sighted actions in the past are now showing to become the drag regarding gaming.

The one part that Microsoft does care about is its connections to places like Bethesda and Ubisoft, who in their presentation show to be much larger players. We get that this is merely beta and engine stuff, but the presentation of the Division 2 rocked, I am not sure how the Crew 2 will do, but it looked awesome, in addition the EA games looked as sweet as sport games can get on the Xbox One, so they have the goods. Phil Spencer is making waves and he is showing changes, but how trusting will this audience remain to be after a mere two incidents where gaming was not possible due to reasons not in the hands of Microsoft? Their support division stated last year that the uploaded data from my console (not by me, were all the responsibility of the internet provider), are you kidding me? Yet the games do look good, there is no denying that, yet their infrastructure might be the Achilles heel that they face in the coming year. There was also time for the upcoming AC game called Odyssey. It is very similar to the look of Origin in looks. Graphically it is stunning. The view also shows that AC is changing; it has a much larger political impact in the story line and the changes you can make. It is a lot more RPG based than ever before, which as an RPG lover is very much appreciated and with the choice of a male or a female player is also a change for good, unlike AC Syndicate the choice will be for the duration of the game, making it a much larger replayable challenge. The demo shows that there definitely are changes, some are likely gamer requests, the rest seems to be a change to make the game more appealing regarding the play style you choose, but that part is speculation from my side. I would want to be cautious, yet they truly took the game to the next level with AC Origin, which makes me give them the benefit of the doubt. The setting that Ubisoft brings is much stronger than last year, so it could end up being a stellar year for Ubisoft. When we get to Sony, I become a little cautious. Yet even as we saw it in the previous presentation, instead of merely presenting titles, having live music on stage, the music from the games was a really nice touch. I do not know about you the gamer, yet I have been more and more connected to the music as the quality of it has been on the rise, so seeing the performances was well appreciated. It might have started as early as ACII and Oblivion, now we see that good music is a much larger requirement in any game. A much darker the Last of Us 2 (if that was even possible) sets the stage for what is to come. Yet, even as we see awesome presentations of what is to come, I have to admit that Microsoft did have a better presentation. Sony is also playing the ‘store’ setting with PlayStation Store for bonus options. The games are overwhelming and those are merely the exclusive titles. When we consider all that Ubisoft and Square Enix bring to the table, it shows to be a great year for all the PlayStation owners. Yet, the overwhelming advantage that they have over Microsoft is not as much as you would think. The question becomes how heavy the overbearing advantage that the Last of Us 2, Ghost of Tsushima and Spiderman have, yet when set opposite Forza Horizon 4, Halo Infinite and Sea of Thieves I wonder if it remains a large advantage. Sony has more to offer yet the overwhelming exclusive benefit is not really there. So when we look at a new Resident Evil, actually a remade version of Resident Evil 2, we remain happy for the ‘unhealthy’ life diminishing gaming treats that are offered; both consoles will be offering gaming goods we all desire. There is no doubt that gaming revenue will go through the roof and it seems that we are in a setting where games are not just on the rise, the predictions are that they will grow the market in nearly every direction, and we still have to hear from Nintendo, you see that one is important for both Microsoft and Sony. There is little doubt that they will surpass the Xbox One in total sales, yet now it becomes the setting where they might be able to pull this off as early as thanksgiving, a setting Microsoft is not ready for, the ‘most powerful console‘ will optionally get surpassed by the weakest one as Microsoft has not kept its AAA game for close to two years. Three simple changes could have prevented that, yet the view and setting of always online, GamerPass and storage destroyed it, the mere consideration of infrastructure was missed by Americans focused on local (US) infrastructure and forgetting that the optional 92.3% of the desired customer base lives outside of the USA. The simplest of considerations missed, how is that as a hilarious setting? Oh and getting back to the Sony presentation, if you thought God of War surpassed your expectations, it seems (from the demo) that Spiderman is likely to equal if not surpass that event, so there is one issue that the others will have to deal with, the PlayStation players (Xbox One players too) will just have to wait and be overwhelmed with the number of excellent games coming their way before Christmas, because for both of them the list seems to be the largest list ever. I am posting this now and perhaps update a few Nintendo settings, as there are several revelations coming. GeekWire gives us in all this “Microsoft’s Xbox One still faces an uphill climb vs. Sony and Nintendo“, yet the article (at https://www.geekwire.com/2018/e3-2018-analysis-microsofts-xbox-one-still-faces-uphill-climb-vs-sony-nintendo/) misses out. You see, even if we are to agree with “Microsoft has effectively made its own console irrelevant, because even with the Windows Anywhere initiative, there’s no particular reason for a dedicated enthusiast to own an “Xbone” if you already have a PC. There are certainly advantages, such as ease of use, simplicity of play, and couch gaming, but the same money you spend on the Xbox could be going to tune up your computer so you can play the same games in a higher resolution“, we see the truth, but a wrong one. You see ‘the same money you spend on the Xbox could be going to tune up your computer“, is not correct. We need to consider “you can find a large number of 3840×2160-resolution displays in the $300 to $500 range“, as well as “For a better 4K experience, look to the $450 GeForce GTX 1070 Ti, $500 GeForce GTX 1080, and $500 Radeon RX Vega 64, though the Radeon card is still suffering from limited availability and inflated prices. These cards still won’t hit a consistent 60 fps at 4K resolution in the most strenuous modern games“, so you are down for a lot more than the price of the Xbox One X and still not get the promised 60fps that the Xbox One X delivers. And that is before you realise that a TV tends to be 4 times the size of a PC display. The biggest issue that has not been resolved is the mere stupidity of 6mm of space, that allows for a 3TB Seagate BarraCuda, it would have diminished most other issues, now merely evolve the operating system requiring people to be online all the time and Microsoft would have created an optional winning situation. It should not impact the need (or desire) for GamerPass and it would change the curve of obstruction by well over 70% overnight, all that when you consider that there is a $65 difference for 300% storage, something that the 4K community needs. Phil Spencer has one hell of a fight coming his way and if he can counter the Microsoft stupidity shown up to now, he could potentially turn the upcoming number three position around in 2019, making Microsoft a contender again at some point, yet if the short-sighted board of Microsoft is not willing to adhere to some views, they will lose a lot more than just the loss of a few hundred millions of console development, they might lose a large customer population forever, because gamers hold a grudge like no other and if it was not merely the cost of the console, the fact that the games they bought might overtake the total amount spend by close to 3:1, and once gone they will never ever return. That is the stage we see now and even as there is a lot of improvement, where it matter no changes were made. So even as we should all acknowledge that Phil Spencer is a large change for the better, Microsoft needs to do more. They have the benefit that Sony gave a good show, yet not as good as Microsoft. Perhaps the live presentations are the E3 part we all desire, the demos and previews were all great on both systems. In that regard Ubisoft and Bethesda both brought their homerun at the E3 and they are well deserved ones. As both deliver to both consoles there were no losses on either side, only wins for both sides, yet that leaves the small devil in my brain considering the question. If Fallout76 is 4 times the size of Fallout 4 which (according to Eurogamer) ‘required 100GB install sizes as a minimum‘ for 4K. So how much more will Fallout 76 need? It is in that light that we need to look with a 1TB drive, something I saw coming 5 years ago. So now, whomever buys a 1TB system will soon (too soon) stop being happy. That is one of the fights Phil Spencer will face soon enough, an issue that could have been prevented 6 years ago. It is so cool to see all these games coming, whilst we see a storage system supporting merely part of what comes and that is before we see the network congestion as a few million people try to update their game and get access to the networking facilities. It was an issue that haunted Ubisoft with the initial Division in 2016. When we saw ‘I’m still at work, had to stay overtime and I’m really salty because I might not even play today because of all this server downtime‘, I merely stated that they could have seen that one coming a mile away. Ubisoft upgraded everything and I do not expect to see this in the Division 2, yet consider that it is not merely one game. Consider every gamer getting issues when they want to access Gears 5 and Halo Infinite on launch day. That is the issue we could see coming and in all honesty, in most cases it will not even be the fault of Microsoft at all. The evidence was seen in Australia merely a week ago when ABC treated us to “NBN Co chief executive Bill Morrow suggested that “gamers predominantly” were to blame for the congestion across the National Broadband Network. He later clarified that he wasn’t blaming gamers for congestion, but reiterated that they are “heavy users”“, that is the reality setting, where Counter-Strike: Global Offensive and Destiny 2, two games are 49% of the average hourly bandwidth usage, now add Fallout 76, Gears 5, the Division 2, EA Access and Microsoft GamerPass. You still think I am kidding? And that is merely Australia, now add London congestion and when we consider some news sources give us: “London, Singapore, Paris and New York taking top spots when we consider internet congestion“, I reckon that Europe has issues to a much larger extent. When we consider in addition that the Deutsche Welle gave us last January “A new report has found that only a small fraction of German users get the internet speeds that providers promise“, as well as “the problem is only getting worse“. That is the setting Microsoft is starting to push for and the gamers will not be enjoying the dangers that this will bring. Certain high level non thinkers at Microsoft are making this happen and now Phil Spencer will be faced with the mess that needs cleaning up. The part that many have been ignoring and it will hit Microsoft a lot harder, especially when it wants to move away from uphill battles, a sign that we cannot ignore and whilst the plan might be valid in 4-6 years, the shortage that the hardware and infrastructure gives at present will not be solved any day soon and that is counting against Microsoft. The impact will hit Nintendo as well, but not nearly as hard. The evidence is out there, yet some analysts seem to have taken it out of the equation. Is that not an interesting view that many ignored?

So we are moving forward in gaming, no one denies that, but overall, some cards (like always online) were played much too early and it will cost one player a hell of a lot more than they bargained for.

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Tagged as AC Odyssey, AC Origin, Bethesda, Beyond Good and Evil 2, Congestion, Deutsche Welle, E3 2018, Evergreen Group, Fallout 76, Forza, Forza Horizon 4, GamerPass, Gears 5, GeekWire, Ghost of Tsushima, Halo Infinite, Julie Waites, Last of Us 2, Microsoft, NBN, Nintendo, Phil Spencer, RPG, Sea of thieves, Sony, Spiderman, TechAU, The Division 2, Ubisoft

June 5, 2018 · 12:25

The gaming E-War is here

The console operators are seeing the light. Even as it comes with some speculation from the writers (me included), we need to try and take a few things towards proper proportions. It is a sign of certain events and Microsoft is dropping the ball again. The CNet news (at https://www.cnet.com/news/xbox-big-fun-deals-e3-week-starts-june-7/) gives us “Microsoft’s big E3 sale on Xbox consoles, games starts June 7“, where we see “Save 50 percent or more on season passes, expansions and DLC and other add-ons“, which sounds good, yet in opposition, some claim that as Microsoft has nothing really new to report (more correctly, much too little to report), they want to maximise sales now hoping to prevent people to move away from the Xbox. I do not completely agree. Even as the setting of no new games is not completely incorrect, the most expected new games tend to not get out in the first month after the E3 (they rarely do), so Microsoft trying to use the E3 to cash in on revenue is perfectly sound and business minded. Out with the old and in with the new as some might say. Yet, Microsoft has been dropping the ball again and again and as more and more people are experiencing the blatant stupidity on the way Microsoft deals with achievements and now we see that these scores are too often unstable (I witnessed this myself), we see that there is a flaw in the system and it is growing, in addition, I found a flaw in several games where achievements were never recognised, implying that the flaw is a lot larger and had been going on for more than just a month or so. The one massive hit that the Xbox360 created is now being nullified, because greed made Microsoft set what I refer to ‘the harassment policy’ of ‘always online‘, this is now backfiring, because it potentially drives people to the PlayStation, who fixed that approach 1-2 years ago (some might prefer the Nintendo Switch). Nintendo needs to fix their one year calendar issue fast before it starts biting them (if they have fixed it, you have my apologies).

Sony is not sitting still either as Cnet reports (at https://www.cnet.com/news/sony-isnt-waiting-for-e3-2018-will-reveal-3-playstation-games-early/), with the quote “Starting Wednesday, June 6, the company will spoil one announcement each and every day for five days in a row. Sony is being tight-lipped about the details, but those announcements will include [censored]“. Yet getting back to Microsoft, they do need and should get recognition for “Up to 75% off select games including Monster Hunter: World, Sea of Thieves and PlayerUnknown’s Battlegrounds“. I admit that a game like monster hunter is an acquired taste, yet 75% off from a 95% rated game like Monster Hunter is just amazing and that game alone is worth buying the Xbox One X for. I only saw the PlayStation edition, yet the impression was as jaw dropping as seeing the 4K edition of AC Origin, so not seriously considering that game at 75% discount is just folly.

The issue is mainly what Microsoft is aiming for (and optionally not telling the gamers). They never made any secret of their desire for the cloud, I have nothing against the cloud, yet when I play games in single player mode, there is no real reason for the cloud (there really is not). So when I see that Microsoft bought GitHub for a little less than 10 billion, we should seriously consider that this is affecting the Xbox One in the future, there is no way around it. Even as we see the Financial Times and the quotes of optional consideration “Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation,” a claim from CEO Satya Nadella. He can make all the claims he like, yet when we consider that this is a setting of constant updates, upgrades and revisions, we see the possible setting where a gamer faces the hardship that the Oracles DBM’s faced between versions 5 and 7. A possible nearly daily setting of checking libraries, updates and implementations to installed games. Yes, that is the real deal a gamer wants when he/she gets home! (Reminder: the previous part was highly speculative)

As we get presentations from the marketeers, those who brought us ‘the most powerful console on the market‘, they are likely to bring slogans in the future like ‘games that are many times larger than the media can currently hold‘, or perhaps ‘games with the option of bringing additions down the track without charge‘, or my favourite ‘games growing on every level, including smarter enemies‘. All this requires updates and upgrades, yet the basic flaw on the Xbox needing extra drives, extra hardware and power points, whilst increasing the amount of downloads with every month such a system is running is not what we signed up for, because at that point getting a gaming PC is probably the better solution. A business setting aimed at people who wanted to have fun. This is exactly the setting that puts the AU$450 PS4, AU$525 and AU$450 Nintendo Switch on the front of the mind of every gamer soon enough.

The elemental flaw that the system holds is becoming an issue for some and when (or if) they decide to push to the cloud to that extent the issues I give will only grow. Now, I will state that in a multiplayer environment, a GitHub setting has the potential to be ground breaking and my making fun with the slogans I gave in Orange, could be the true devastating settings that will form an entirely new domain in multiplayer gaming. Yet we are not there yet and we will not be there yet for some time to come. Even as Ubisoft is getting better and they did truly push the edge with AC Origin, you only have to think back to The Division, the outages and connection issues. The moment that this hits your console for single player that is the moment when you learned the lesson too late. In similar view we can state that the lessons that we learned with Ubisoft Unity, what I call clearly bad testing and perhaps a marketing push to get the game out too early ‘to satisfy shareholders‘, whilst gamers paid AU$99 for a game needing a ‘mere’ patch, which was stated in the media in 2014 as: “The fourth patch for Assassin’s Creed: Unity arrived yesterday as a sizable 6.7 GB download. At least, that’s the case for non-Xbox One players; some players using the Microsoft console are facing 40 GB downloads for the patch“. Think of that nightmare hitting your console in the future, and with the cloud the issues actually becomes more dangerous as patches were not properly synched and tested. That was the fourth, and that was before 4K gaming became the 4K option on consoles, which would have made the Unity download a speculated 80GB, over 10% of the available space of an empty Xbox One. Now, you must consider that such patches would be enormous on the PS4 pro as well, that whilst Microsoft could have prevented 40% of the issues of the issues we are faced well over a year ago, now consider how you want your gamer life to be. Do you still feel happy at present?

Oh, and Sony is not out of the woods either, even as some are really happy with the PS4Pro, it must be clearly stated that there are enough issues with frame rates on several games, all requiring their own patch, which is not a great setting for Sony to face. Even as the new games are more than likely up to scrap and previously released games like Witcher 3 are still getting patches and upgrades, the fact that God of war had issues was not a great start; the game looked amazing on either system. Still, when it comes to fun, it seems that Nintendo has the jump on both Sony and Microsoft. The Splatoon 2 weapons update (lots more weapons) is just one of the setting that will entice the Nintendo fans not put away their copy of Splatoon 2 any day soon. In addition, Amazon implied that Fallout 76 will be coming to the Nintendo switch, which is a new setting for both Sony and Microsoft. For those imagining that this is a non-issue because of the graphics need to play Metroid Prime on a GameCube and watch it being twice the value that Halo one and two gave on an Xbox (with their much higher resolution graphics). The mistaking belief that high-res graphics are the solution to everything clearly has never seen how innovative gaming on a Nintendo outperforms ‘cool looking images‘ every single time. Now that Bethesda is seeing the light, we could be in for a new age of Vault-Tec exploration, but that is merely my speculated view. That being said, the moment we see Metroid Prime 1 and 2, as well as Pikmin and Mario Sunshine on Switch that will be the day that both my Xbox One and Ps4 will be gathering dust for weeks. These games are that much more fun. I just do hope that it will not overlap with the release of some PS4 games I have been waiting for (like Spiderman), because that in equal measure implies that I need to forgo on hours of essentially needed sleep. Mother Nature tends to be a bitch when it boils down to natural needed solutions (I personally do not belief in a red bull life to play games).

So as we are in the last 4 days before the E3 begins, we are more and more confronted with speculations and anticipation. Cnet was good enough to focus on released facts, which is awesome at present. Yet we are all awaiting the news. That being said, the leaks this year has been a lot larger and revealed information has been on overload too. It might be the first sign that the E3 events could be winding down. There had been noise on the grapevine a few weeks ago, yet I was not certain how reliable that information was. The leaks and pre-release information does imply that E3 is no longer the great secret basket to wait for as it was in previous years. We will know soon, so keep on gaming and no matter which console your heart belongs to, make sure you have fun gaming!

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Tagged as Assassins Creed Unity, CNET, E3, E3 2018, Fallout 76, Financial Times, GameCube, Mario Sunshine, Metroid Prime, Metroid Prime 2, Microsoft, Monster Hunter: World, Nintendo, Nintendo Switch, Oracles DBM, Pikmin, Playstation, Satya Nadella, Sea of thieves, Sony, Spiderman, Splatoon, The Division, Ubisoft, Xbox360

June 1, 2018 · 11:50

Data illusions

Yesterday was an interesting day for a few reasons; one of the primary reasons was an opinion piece in the Guardian by Jay Watts (@Shrink_at_Large). Like many article I considered to be in opposition, yet when I reread it, this piece has all kinds of hidden gems and I had to ponder a few items for an hour or so. I love that! Any piece, article or opinion that makes me rethink my position is a piece well worth reading. So this piece called ‘Supermarkets spy on them now‘ (at https://www.theguardian.com/commentisfree/2018/may/31/benefits-claimants-fear-supermarkets-spy-poor-disabled) has several sides that require us to think and rethink issues. As we see a quote like “some are happy to brush this off as no big deal” we identify with too many parts; to me and to many it is just that, no big deal, but behind the issues are secondary issues that are ignored by the masses (en mass as we might giggle), yet the truth is far from nice.

So what do we see in the first as primary and what is behind it as secondary? In the first we see the premise “if a patient with a diagnosis of paranoid schizophrenia told you that they were being watched by the Department for Work and Pensions (DWP), most mental health practitioners would presume this to be a sign of illness. This is not the case today.” It is not whether this is true or not, it is not a case of watching, being a watcher or even watching the watcher. It is what happens behind it all. So, when we recollect that dead dropped donkey called Cambridge Analytics, which was all based on interacting and engaging on fear. Consider what IBM and Google are able to do now through machine learning. This we see in an addition to a book from O’Reilly called ‘The Evolution of Analytics‘ by Patrick Hall, Wen Phan, and Katie Whitson. Here we see the direct impact of programs like SAS (Statistical Analysis System) in the application of machine learning, we see this on page 3 of Machine Learning in the Analytic Landscape (not a page 3 of the Sun by the way). Here we see for the government “Pattern recognition in images and videos enhance security and threat detection while the examination of transactions can spot healthcare fraud“, you might think it is no big deal. Yet you are forgetting that it is more than the so called implied ‘healthcare fraud‘. It is the abused setting of fraud in general and the eagerly awaited setting for ‘miscommunication’ whilst the people en mass are now set in a wrongly categorised world, a world where assumption takes control and scores of people are now pushed into the defence of their actions, an optional change towards ‘guilty until proven innocent’ whilst those making assumptions are clueless on many occasions, now are in an additional setting where they believe that they know exactly what they are doing. We have seen these kinds of bungles that impacted thousands of people in the UK and Australia. It seems that Canada has a better system where every letter with the content: ‘I am sorry to inform you, but it seems that your system made an error‘ tends to overthrow such assumptions (Yay for Canada today). So when we are confronted with: “The level of scrutiny all benefits claimants feel under is so brutal that it is no surprise that supermarket giant Sainsbury’s has a policy to share CCTV “where we are asked to do so by a public or regulatory authority such as the police or the Department for Work and Pensions”“, it is not merely the policy of Sainsbury, it is what places like the Department for Work and Pensions are going to do with machine learning and their version of classifications, whilst the foundation of true fraud is often not clear to them, so you want to set a system without clarity and hope that the machine will constitute learning through machine learning? It can never work, that evidence is seen as the initial classification of any person in a fluidic setting is altering on the best of conditions. Such systems are not able to deal with the chaotic life of any person not in a clear lifestyle cycle and people on pensions (trying to merely get by) as well as those who are physically or mentally unhealthy. These are merely three categories where all kind of cycles of chaos tend to intervene with their daily life. Those are now shown to be optionally targeted with not just a flawed system, but with a system where the transient workforce using those methods are unclear on what needs to be done as the need changes with every political administration. A system under such levels of basic change is too dangerous to get linked to any kind of machine learning. I believe that Jay Watts is not misinforming us; I feel that even the writer here has not yet touched on many unspoken dangers. There is no fault here by the one who gave us the opinion piece, I personally believe that the quote “they become imprisoned in their homes or in a mental state wherein they feel they are constantly being accused of being fraudulent or worthless” is incomplete, yet the setting I refer to is mentioned at the very end. You see, I believe that such systems will push suicide rates to an all-time high. I do not agree with “be too kind a phrase to describe what the Tories have done and are doing to claimants. It is worse than that: it is the post-apocalyptic bleakness of poverty combined with the persecution and terror of constantly feeling watched and accused“. I believe it to be wrong because this is a flaw on both sides of the political aisle. Their state of inaction for decades forced the issue out and as the NHS is out of money and is not getting any money the current administration is trying to find cash in any way that they can, because the coffers are empty, which now gets us to a BBC article from last year.

At http://www.bbc.com/news/election-2017-39980793, we saw “A survey in 2013 by Ipsos Mori suggested people believed that £24 out of every £100 spent on benefits was fraudulently claimed. What do you think – too high, too low?
Want to know the real answer? It is £1.10 for every £100“. That is the dangerous political setting as we should see it; the assumption and believe that 24% is set to fraud when it is more realistic that 1% might be the actual figure. Let’s not be coy about it, because out of £172.3bn a 1% amount still remains a serious amount of cash, yet when you set it against the percentage of the UK population the amount becomes a mere £25 per person, it merely takes one prescription to get to that amount, one missed on the government side and one wrongly entered on the patients side and we are there. Yet in all that, how many prescriptions did you the reader require in the last year alone? When we get to that nitty gritty level we are confronted with the task where machine learning will not offer anything but additional resources to double check every claimant and offense. Now, we should all agree that machine learning and analyses will help in many ways, yet when it comes to ‘Claimants often feel unable to go out, attempt voluntary work or enjoy time with family for fear this will be used against them‘ we are confronted with a new level of data and when we merely look at the fear of voluntary work or being with family we need to consider what we have become. So in all this we see a rightful investment into a system that in the long run will help automate all kinds of things and help us to see where governments failed their social systems, we see a system that costs hundreds of millions, to look into an optional 1% loss, which at 10% of the losses might make perfect sense. Yet these systems are flawed from the very moment they are implemented because the setting is not rational, not realistic and in the end will bring more costs than any have considered from day one. So in the setting of finding ways to justify a 2015 ‘The Tories’ £12bn of welfare cuts could come back to haunt them‘, will not merely fail, it will add a £1 billion in costs of hardware, software and resources, whilst not getting the £12 billion in workable cutbacks, where exactly was the logic in that?

So when we are looking at the George Orwell edition of edition of ‘Twenty Eighteen‘, we all laugh and think it is no great deal, but the danger is actually two fold. The first I used and taught to students which gets us the loss of choice.

The setting is that a supermarket needs to satisfy the need of the customers and the survey they have they will keep items in a category (lollies for example) that are rated ‘fantastic value for money‘ and ‘great value for money‘, or the top 25^th percentile of the products, whatever is the largest. So in the setting with 5,000 responses, the issue was that the 25^th percentile now also included ‘decent value for money‘. So we get a setting where an additional 35 articles were kept in stock for the lollies category. This was the setting where I showed the value of what is known as User Missing Values. There were 423 people who had no opinion on lollies, who for whatever reason never bought those articles, This led to removing them from consideration, a choice merely based on actual responses; now the same situation gave us the 4,577 people gave us that the top 25^th percentile only had ‘fantastic value for money‘ and ‘great value for money‘ and within that setting 35 articles were removed from that supermarket. Here we see the danger! What about those people who really loved one of those 35 articles, yet were not interviewed? The average supermarket does not have 5,000 visitors, it has depending on the location up to a thousand a day, more important, when we add a few elements and it is no longer about supermarkets, but government institutions and in addition it is not about lollies but Fraud classification? When we are set in a category of ‘Most likely to commit Fraud‘ and ‘Very likely to commit Fraud‘, whilst those people with a job and bankers are not included into the equation? So we get a diminished setting of Fraud from the very beginning.

Hold Stop!

What did I just say? Well, there is method to my madness. Two sources, the first called Slashdot.org (no idea who they were), gave us a reference to a 2009 book called ‘Insidious: How Trusted Employees Steal Millions and Why It’s So Hard for Banks to Stop Them‘ by B. C. Krishna and Shirley Inscoe (ISBN-13: 978-0982527207). Here we see “The financial crisis appears to be exacerbating fraud by bank employees: a new survey found that 72 percent of financial institutions say that in the last 12 months they have experienced a case of data theft by one of their workers“. Now, it is important to realise that I have no idea how reliable these numbers are, yet the book was published, so there will be a political player using this at some stage. This already tumbles to academic reliability of Fraud in general, now for an actual reliable source we see KPMG, who gave us last year “KPMG survey reveals surge in fraud in Australia“, with “For the period April 2016 to September 2016, the total value of frauds rose by 16 percent to a total of $442m, from $381m in the previous six month period” we see number, yet it is based on a survey and how reliable were those giving their view? How much was assumption, unrecognised numbers and based on ‘forecasted increases‘ that were not met? That issue was clearly brought to light by the Sydney Morning Herald in 2011 (at https://www.smh.com.au/technology/piracy-are-we-being-conned-20110322-1c4cs.html), where we see: “the Australian Content Industry Group (ACIG), released new statistics to The Age, which claimed piracy was costing Australian content industries $900 million a year and 8000 jobs“, yet the issue is not merely the numbers given, the larger issue is “the report, which is just 12 pages long, is fundamentally flawed. It takes a model provided by an earlier European piracy study (which itself has been thoroughly debunked) and attempts to shoe-horn in extrapolated Australian figures that are at best highly questionable and at worst just made up“, so the claim “4.7 million Australian internet users engaged in illegal downloading and this was set to increase to 8 million by 2016. By that time, the claimed losses to piracy would jump to $5.2 billion a year and 40,000 jobs” was a joke to say the least. There we see the issue of Fraud in another light, based on a different setting, the same model was used, and that is whilst I am more and more convinced that the European model was likely to be flawed as well (a small reference to the Dutch Buma/Stemra setting of 2007-2010). So not only are the models wrong, the entire exercise gives us something that was never going to be reliable in any way shape or form (personal speculation), so in this we now have the entire Machine learning, the political setting of Fraud as well as the speculated numbers involved, and what is ‘disregarded’ as Fraud. We will end up with a scenario where we get 70% false positives (a pure rough assumption on my side) in a collective where checking those numbers will never be realistic, and the moment the parameters are ‘leaked’ the actual fraudulent people will change their settings making detection of Fraud less and less likely.

How will this fix anything other than the revenue need of those selling machine learning? So when we look back at the chapter of Modern Applications of Machine Learning we see “Deploying machine learning models in real-time opens up opportunities to tackle safety issues, security threats, and financial risk immediately. Making these decisions usually involves embedding trained machine learning models into a streaming engine“, that is actually true, yet when we also consider “review some of the key organizational, data, infrastructure, modelling, and operational and production challenges that organizations must address to successfully incorporate machine learning into their analytic strategy“, the element of data and data quality is overlooked on several levels, making the entire setting, especially in light of the piece by Jay Watts a very dangerous one. So the full title, which is intentionally did not use in the beginning ‘No wonder people on benefits live in fear. Supermarkets spy on them now‘, is set wholly on the known and almost guaranteed premise that data quality and knowing that the players in this field are slightly too happy to generalise and trivialise the issue of data quality. The moment that comes to light and the implementers are held accountable for data quality is when all those now hyping machine learning, will change their tune instantly and give us all kinds of ‘party line‘ issues that they are not responsible for. Issues that I personally expect they did not really highlight when they were all about selling that system.

Until data cleaning and data vetting gets a much higher position in the analyses ladder, we are confronted with aggregated, weighted and ‘expected likelihood‘ generalisations and those who are ‘flagged’ via such systems will live in constant fear that their shallow way of life stops because a too high paid analyst stuffed up a weighting factor, condemning a few thousand people set to be tagged for all kind of reasons, not merely because they could be optionally part of a 1% that the government is trying to clamp down on, or was that 24%? We can believe the BBC, but can we believe their sources?

And if there is even a partial doubt on the BBC data, how unreliable are the aggregated government numbers?

Did I oversimplify the issue a little?

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Tagged as @Shrink_at_Large, ACIG, Australian Content Industry Group, B. C. Krishna, BBC, Buma/Stemra, CCTV, Department for Work and Pensions, Dutch, DWP, google, IBM, Ipsos Mori, Jay Watts, Katie Whitson, KPMG, Machine learning, Modern Applications of Machine Learning, NHS, O'Reilly, Patrick Hall, Sainsbury, Shirley Inscoe, Slashdot.org, Sydney Morning Herald, The Evolution of Analytics, the Guardian, the Netherlands, Tories, UK, Wen Phan

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