Tag Archives: Cisco

September 15, 2016 · 16:22

Did UKIP get it right?

That is a question that is slowly growing within the minds of Britons and non-Britons alike. Some will be in denial over it all, some will ignore their inner voice and some will ponder it. You see, once the banter and the mudslinging stops and people are sitting down thinking over a year in political waves, we are slowly getting the aftermath news and suddenly things are a lot less gloomy. Bloomberg gives us “There’s dwindling talk of a recession caused by the vote the leave the European Union, and British politicians are wondering if a “hard Brexit” option –rapid withdrawal from Europe without a new trade agreement – might be feasible. The answer is no. Such views rest upon bad economic reasoning and the cost of Brexit remains high, albeit mostly invisible for the time being“, is part of the news. You see, the scaremongers are now out of the view and the negative impacts, the ones we knew about are showing to be less negative than the scaremongers proclaimed. I agree and always did agree that the cost would be high. Mark Carney, Governor of the Bank of England had stated it, and in addition stated that there were elements that could not be forecasted. Which is also a truth. They are the invisible costs that will come and come again. The issue in my mind has always been, will it in the end be worth it (are the costs not unaffordable high) and I leaned more and more towards the Yes side!

You see, one of the main reasons for leaning towards Brexit was Mario Draghi. The trillion plus stimulus plans he had were too unfounded. Japan and the US are showing that there had been no clear increase whilst we hear opposite claims. The issue is actually brought to light by Bloomberg last week (at http://www.bloomberg.com/news/videos/2016-09-08/ecb-s-mario-draghi-downplays-more-stimulus), where we hear at 00:39 that there is an impact on the markets, but no real impact on the economy, which was my issue from the start. Politicians casually mixing both up in their speeches were playing, as I see it a flim-flam artist dictionary game, trying to make us think it is one and the same, yet they all know that it is not. So no real impact yet will over a trillion deeper in debt, only those on the financial markets, only some of them got a big payday out of all of it, the rest just has to assist in paying off the invoice. It is one of the pillars UKIP had!

Now we see even more issues, especially when we see additional issues in City A.M. (at http://www.cityam.com/249335/christine-lagarde-and-mario-draghi-call-politicians-do-more), with the quote “Christine Lagarde, head of the International Monetary Fund (IMF) and Mario Draghi, president of the European Central Bank (ECB) said governments and institutions needed to make sure their policies did not leave the poorest members of society behind, and called for structural reforms to help share the spoils of economic growth“, the failure of the European Community laid bare! You see, the people on EEC incomes have been meeting and not getting anywhere for almost 15 years now! The fact that tax laws and Corporate laws required revision even before 2004 as a requirement and after 2004 as a given is shown that none of this has been adequately done. The fact that the US played its cards in the Summit in the Netherlands in 2013, we all knew how that ended, so as we see that some are now crying cockroach, whilst littering food all over the floor only have themselves to thank for this situation. This all reflects back on the initial issue UKIP gave, ‘let’s make Britain about the British’. This is not racism, this is nationalism (read: nationalistic pride). An issue that neither Christine Lagarde nor Mario Draghi could resolve as they have been setting a neutral pose in aid of large corporations for far too long.

The next issue is the economic plan B that is now all over the news. The powerful monetary tool (TLTRO) that at 1:37 comes with the quote “that nobody has really fully understood or analysed“, and that is the plan B they are now grasping for!

TLTRO?

It is not a cereal or breakfast solution. It is a Targeted Long-Term Refinancing Operation. The ECB states “provide financing to credit institutions for periods of up to four years. They offer long-term funding at attractive conditions to banks in order to further ease private sector credit conditions and stimulate bank lending to the real economy“, that sounds nice on paper, but if we know that the impact is not understood, has never been analysed to the effect it is, this all whilst we know that taxation laws are failing and corporate laws are not up to scrap, the ECB quote could be translated to “provide financing to credit institutions for periods of up to four years. They offer a refinanced the current outstanding debts to banks, guaranteeing large bonuses by resetting bad debts and revitalising the conditions of what were supposed to be written off debts, giving a false incentive to a dangerous presented economy at present“, you see, I am almost stating the same whilst the intent completely changes, the markets are now getting a boost via the other side. This is a reality we could face!

You see, the view is given with “All the new operations will have a four-year maturity, with the possibility of repayment after two years” (at https://www.ecb.europa.eu/press/pr/date/2016/html/pr160310_1.en.html), yet like the US, Greece and Japan, it is almost a given (speculation from my side) that these maturities will be paid with new debts. When we see the quote “Counterparties will be able to repay the amounts borrowed under TLTRO II at a quarterly frequency starting two years from the settlement of each operation. Counterparties will not be subject to mandatory early repayments” gives way to the thought that it is entirely possible that when the debts mature, they could be replaced be a new debt. Giving weight to the dangers. The fact that the option ‘not subject to early repayments’ is clearly included gives ample weight to the solution, whilst not preventing additional debts from this rephrased stimulus. In the end, the economy will not prosper, the rise of the debt will. Whilst under the debts the UK already is, these arrangements are as I see it too dangerous, all this as the increase of debts only give rise and power to non-governmental institutions to grow their influence via corporations over nations. One of the better players (Natixis), had this quote “Natixis Asset Management ranks among the leading European asset managers with €328.6 billion in assets under management” (source at present intentionally omitted), with the TLTRO in play, depending on the rules of the game (which were not available to me at present), it is entirely possible that once really in play, banks can indirectly refinance risky debts in additional loans via the applicant and as such get themselves a boost. It could potentially allow Natixis to grow its asset management part up to 20%. The ECB states (at https://www.ecb.europa.eu/mopo/implement/omo/tltro/html/index.en.html) “The TLTROs are targeted operations, as the amount that banks can borrow is linked to their loans to non-financial corporations and households“, so basically companies in hardship can get relief, whilst the banks will still get their cut (aka administration and processing fee). Consider that Wealth Management is many things and Estate planning is one, now consider that Natixis has Credit and counterparty risks amounting in excess to 295 billion euro’s. Now there is a Draghi solution, one that no one seems to have ‘analysed’ that allows for solutions to non-financial corporations. Natixis is that, but their clients are not, and they can apply for the shifted funds, offsetting their loans, paying of the loans towards Natixis, who now have a massive amount of freed up cash that they can now pour into all kinds of solutions and endeavours. So do you still think that my view of 20% is oversimplified? And in 4 years? Well at that point, when things go south, Natixis and parties alike can jump in and possibly help out, ‘but at a price’ (which is fair enough).

This now reflects back to UKIP and Brexit!

The Guardian had an opinion piece (at https://www.theguardian.com/commentisfree/2014/sep/14/ttip-deal-british-sovereignty-cameron-ukip-treaty), that gives us the following, remember this is September 2014! “If you are worried about the power of corporations over our democracy, be very afraid: ISDS in effect grants multinationals the same legal position as a nation-state itself, and allows them to sue sovereign governments in so-called arbitration tribunals on the grounds that their profits are threatened by government policies. Is this scaremongering, as TTIP supporters claim?” So far there have been many voices who seem to be over the moon that the TTIP is now a failure and that the issues within the EU would have been far more reaching that many players were willing to admit to before the signing. Politico.eu reported “U.S. diplomats are sketching out a last-ditch plan to salvage core sections of the EU’s moribund trade deal with Washington“, that with the added “U.S. and Italian officials are now weighing the option of a “Step 1” deal to lock in elements that can be finalized by December, possibly including joint testing regimes and mutually agreed upon standards for cars, pharmaceuticals and medical devices“. It is clear that the US want to lock in Pharmaceuticals and cars, yet how is such a niche nothing more than a path trying to ditch the title ‘total loser government’ regarding the current administration. In addition “The idea has sparked immediate scepticism in the European Commission and in some EU member countries, which argue that any form of a downgraded deal will be very hard to sell politically, particularly after French Trade Minister Matthias Fekl and German Economy Minister Sigmar Gabriel turned hostile on the negotiations” gives way that BMW, Mercedes, Bayer Pharmaceuticals, Peugeot, Citroen and Sanofi are none too pleased with such a one sided piece of paper. The idea that such set benefits would be allotted at this point gives even more weight to some of the UKIP statements in the past.

If 2 out of the many projection come true, you are not suddenly a better prognosticator, mainly because that title is reserved for the likes of Punxsutawney Phil, Queen Charlotte and Shubenacadie Sam. Let’s face it, it is the title worthy of a groundhog! But some of these steps were clearly seen, because this is where everything was headed, the more forward you look, the easier the prediction could come true is not wrong, but only if you are travelling on a straight road. A road that corporate greed depends on I might say!

In my view, there is not enough to state that UKIP got it right, yet there are also enough facts and questions in play that UKIP did not get it wrong. We might listen those who keep on shouting that Brexit was wrong and see them as the people trying to reinvent the vote, but overall people are starting to realise that the US (read Wall Street) has been trying to give people a bad deal to benefit their own greed. The fact that this is going on at this very minute is equally a worry. This is on both sides of the isle, yet we can understand that Labour needs to clean house and they have decided on the method of accidentally leaking names. How will that solve anything? If Labour was on the ball, than they would steering towards real economic improvements, not bickering minors trying to decide who should be the number two, and soon thereafter remove the number one (read: allegedly attempt to). Actions that are totally counterproductive as the Conservatives are governing until the next general elections. It seems like such a waste of energy to me.

Now we see a new escalation. It seems (at http://www.ibtimes.co.uk/jean-claude-juncker-proposes-new-european-military-hq-worj-towards-eu-army-1581391). So the quote “The president of the European Commission Jean-Claude Juncker has called for a European Union military headquarters to work towards an EU-controlled army. Juncker made the proposals during his State of the Union address to MEPs in Strasbourg on Wednesday (14 September)“, which automatically makes me wonder how this correlates with Nazi Germany as this was how they resolves their bad economic times. It is a harsh history lesson to learn, but in that I am actually less afraid for a ‘new’ Nazi Europe. My issue is that many nations have their Cyber plan not in hand and any actions here give rise to the dangers that this would open up data for the Chinese Cyber groups to learn a lot more than they bargained for. You see, no matter how much denial we see, the facts are simple, Ren Zhengfei is the Huawei CEO and a former officer for the PLA. Now this does not mean that he is now still committed to the PLA, yet Huawei does business with the Chinese government and as such, they have all the specs and as such, they have all the weaknesses  of these devices too, meaning that governments all over Europe are in a possible place of Cyber Scrutiny. This does not mean that I am willing to just blindly accept the NSA report, but ties like that, when you are on these levels talking to the ruling members of Chinese government, you need to be networking on a massive scale and if both the Chinese military and Chinese Intelligence (MSS) gives you the thumbs up, you have been playing the game they want you to play, plain and simple. By the way, this is not a rant, or a side step into the matter, this is a direct factual response. Nigel Farage addressed the EU on an EU Army opposing it on valid points, and he got a few more hands clapping than his opponents are comfortable with. Now this was about opposition of the EU army as a whole, but underneath is the need for any military organisation to be secure and have systems in place, systems that could be compromised. In this Huawei could validly give the same argument that all Cisco Systems are compromised by the CIA and NSA. As we cannot prove either side, or perhaps even both sides, how to proceed? Both sides would be fair enough and it only makes a case strong enough to not proceed with any EU Army, which is no solution to any existing threat, will cost massive amounts of money (and that just the initial infrastructure) and with the current upcoming changes to the EC as a whole. Especially as Marine Le Pen has vowed to hold the French referendum if she is elected, this whilst several European magazines are now stating that France can no longer avoid Frexit (at https://www.letemps.ch/economie/2016/09/12/france-ne-pourra-eviter-frexit), which I stated was a growing realistic danger if Brexit would commence, in addition, Italy is seeding its own departure later this year, but no given certainty exists at present.

All these parts I gave visibility to almost 2 years ago, the press still largely in denial and additional players are now coming out to (as I personally see it) fill their pockets as fast as possible because when this comes to town and the referendums do fall, certain people will have to give account of their actions. The fact will remain that the Credit Card that Mario Draghi used will be spread over several nations, most of them with no option to get into deeper debt. So they have this to look forward to. In Italy there seems to be a plus side, as the larger players are now looking towards the option of as referendum, the act as such seems to be taking the wind out of the sails of Matteo Salvini, head of the far-right Lega Nord, which is regarded as a relief in many European nations. They seem to regard Matteo Salvini the same way that they regard the French Newspaper Minute, too far to the right and not really that readable. I cannot confirm that (as my French does not surpass the ability to read a menu), but I understand the sentiment as there have been Dutch papers on the other side of the political isle receiving similar accusations.

In the end Europe is about to take economic steps with large implications, the fact that they are trying to push it through regardless of whatever consideration it required, which makes me worried on the fact that the impact on the European populations have been ignored for too long. The weird thing is that any action should have been in support of the European population and their needs, giving weight to more than one statement from the side of Nigel Farage.

I would suggest you ponder those facts before blindly moving into the Bremain field in the near future, because there are several issues that no one can answer and they come with obscenely high price tags!

 

Leave a comment

Filed under Finance, Law, Media, Politics

Tagged as , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

September 7, 2016 · 15:26

A bit in the stream

Something alerted me towards events this morning in LinkedIn of all places. There was a reference towards an article titled ‘New Accenture boss Bob Easton throws down gauntlet to big four on digital’ (at http://www.afr.com/business/accounting/new-accenture-boss-bob-easton-lays-down-gauntlet-to-big-four-on-digital-20160829-gr3huj ).

The initial quote is “The trouble is there is a lot of people running around talking about digital“, which is true. Bob Easton is right that there is a lot of talk about digital. Yet, when we look at the definitions, I wonder how many have a true grasp of digital. Even I myself wonder when the use ‘digital’ is warranted. You see, when it is media, my photography is digital, so is my filming. Advertisement is digital as it goes through AdWords and not trough the newspapers. Here is the issue. When is something digital? Bob Easton states in the article “they are confusing the market by misunderstanding digital strategy and lacking the global capabilities of his firm“, the fact that IBM took a massive hit is not a surprise because they are confused on the best of times. They still present the 14 managers and 2 technicians approach. I cannot speak for either PricewaterhouseCoopers in this instance, or for EY, but my last encounter with Deloitte gave a much better view on them and they seem to know it (to some extent). So where does this leave Accenture?

The term “moving to aggressively compete for work in the consulting, digital and business transformation space” is only a concern if they do not meet customers’ expectations. So where should they be?

So where should you be? You see Dave Aron from Gartner (at that time) gives me: “A digital strategy is a form of strategic management and a business answer or response to a digital question, often best addressed as part of an overall business strategy“, what I liked was “Every business and public sector agency needs both an IT Strategy and a Digital Business Strategy. They must be highly aligned with each other, but they are not the same thing“, which gives part of the goods, yet when we consider his claim “All aspects of the business strategy should be informed by digital considerations“, we tend to get confused here, because different elements have the same word (read: digital), but in that the setting is not the same.

We can see it as advancements in digital technologies such as computers, data, telecommunications and Internet, which is still true, but how to go about it?

A digital media manager looks at how to get the solutions towards their ROI, which in many turns means to get it all electronically solved, whilst keeping costs to a minimum. Here we see the first failing from IBM as they are about revenue and about getting the business onto their solutions. Even in a step by step solution it is about getting one foot into the door and upsell from there. That is not a solution for the client, it is merely a solution for the sales person’s target.

And in some cases there is no digital path, but to a lot of people that does not exist so they will feign a solution. As an example I have my old dentist, he had a card system so perfect that no IT solution could bring the goods. I saw yuppies in all sizes try to sell him a solution between 1983 and 1995, one failure after another. The mere realisation that not all solutions fit and that some solutions will drive down the ROI in unacceptable ways is why several of these players will never succeed. Because what the client truly needs is never addressed. If we take the approach from Macala Wright (at http://mashable.com/2012/09/05/how-to-digital-strategy/#oc3qMBqfF8qC)

We see a decently clear path. I can quote all the steps again, but the article has them down to a nice clean size, so reading it is a recommendation.

I am downgrading it to these four steps for comfort (read: mine).

  1. Identifying the opportunities and challenges in a business where online assets can provide a solution or a difference.
  2. Identifying the unmet needs and goals of the external stakeholders that most closely align with those key business opportunities and challenges, and especially if there are threats there.
  3. Developing a vision around how the online assets will fulfil those business and external stakeholder needs, goals, opportunities, challenges and threats.
  4. Prioritizing a set of online initiatives which can deliver on this vision.

These steps also include the views Cisco had in step 3, yet it is a watered down list. I am emphasising this as the entire ‘going digital’ is larger and more complex than most realise. When I look at what can be done and what can be achieved we need to realise that this all needs the decision makers to be aligned and in that both IT and business needs must be addressed. Most people going digital seem that it is a cheaper solution towards a better ROI. Yes, it is a path towards a better ROI, which will not make it cheaper. It requires serious investments and not tinkering around with half a dozen people working from home, sending in some finished element. Whilst the Australian Financial Review gives us a chart with Revenue versus margin and adds a little hype by adding AirBnB and Uber in the new business models, we see a forgotten element. You see, these new business models come with a little hook, one was highlighted by Bell Partners, where we see “Some critics argue that Uber drivers are not subject to the same premiums for compulsory third-party (CTP) insurance as taxis, as it is harder to identify an Uber car in an accident“. Is that so? So how does this impact the passenger? Until you are in an accident you might not care, but when the hospital bills come and the Uber player does not have the coverage, you will soon learn that hospitals are very expensive.

There is a lot of truth in the article and it is well worth reading, yet the lack of threats discussed is equally unsettling. The fact that Expenses in the digital world are up and very much so with Accenture is an element, and also a threat. You see, we all understand that there are a lot more expenses coming over (nearly all tax deductable), the matter of a shifting ROI remains and until the model is used to fuel growth the benefit will not be easily seen. For this path requires a globalising mindset. If you want to remain the big cheese in Darlinghurst and that is all you want, you need to consider what sides need the digital approach and what you want to grow. This for the mere reason that costs will come in the early days and if you are ready it is not an issue, if not, your ROI went straight into the basement, good luck enjoying that view!

Depending on your market, it will be about your customers and their experience, if that is not upgraded, then why byte into the digital apple? I truly worry about the bit you do not end up with, as you would limit your position and enable your competitor overnight. This is the part that is not addressed in many places, because everyone is in a sales hat thinking bonus and saying, we can get you onto the digital path! You see, the presentation in the AFR, regarding the digital disruption framework is aptly drawn as a spear point and it points towards you! The better the comprehension and implementation, the more it becomes a weapon of offense instead of a solution to suicide. In that regard, towards the offense we see that the spear could be the stepping stone that upgrades the customer experience and as such truly grow your business, which is exactly what it is, but it is not a cheap solution or an overnight solution, it is merely a new solution to grow towards places you never grew before, so you grow the options in getting a grown customer base, which is what many want.

The only question is how correctly the path has been drawn out and here we see the elements that Bob Easton sells on. Accenture seems to know this path through and through. We have seen how IBM scuttled their knowledge and for the most, the other players (read: self-proclaimed players) are not up to scrap, but their level of failure is not clearly shown, Bob Easton points at it, but there is clear doubt if that is a given, especially in the case of Deloitte.

Finally we see the mention of government contracts, which is of course fun to read. Especially as 20 years have shown me that the bulk of government is relatively clueless on any digital path, with Defence on a whole being close to the sole exception.

In all this I find one part slightly debatable, even as the chart makes perfect sense. The quote “Digitising the experience for your customers, digitising your internal operations and the creation of the capabilities to recognise and exploit new business models” is true, yet recognising new business models is always a non-given, because that requires the altered mindset of a board of directors, which tends to focus on the golf game and less on the balls they slice, which gives weight to the debate, not the issue with the model as shown. In that for Taxi’s the model makes perfect sense, because Uber is now forcing a different mindset on the taxi corporations. Yet consider the year before Uber started, how many Taxi companies were actively looking into new business models? That list is hugely close to zero!

I say that competitors and threats, the second more than the first is driving that element, which is why even in the digital move, a SWOT analyses tends to have more decisive impact on the decisions. When we know the elements strengths, weaknesses, opportunities, and threats, we can start to look at the options we have, and they do include the two Bob Easton axis scales namely Revenue and Margin. As stated, his view is not incorrect, I personally find it a little incomplete in this instance.

And to finalise this, the problem he states is on many levels, I am not even sure if America is the largest waster of options and resources here, yet when we see politicians go with (read: Donald Trump on CBS today) “you know cyber is becoming so big today. It’s becoming something that a number of years ago, short number of years ago, wasn’t even a word. And now the cyber is so big“, in this case Donald Trump for his elections. The fact that Cyber threats have been on the FBI agenda even before October 6th 1999, stating that the damage from those threats had surpassed 7 billion in Q1 and Q2 of 1999 gives us worry that Cyber and Digital are more than words and those who are aiming to be in a seat of power have not grasped it. The entire educational system is not ready for these changes, which is not their fault. The market that Bob Easton described has grown nearly exponentially and the next generation is not aware of what is what, that whilst the current generation is not up to scrap as to what the definitions are, how they should be seen and how they apply in a real time environment and the people in charge are not getting educated either, most they get is from trade shows dying for you to buy their solution, which is not much of an education and finally the previous generation that is hoping to make it to retirement before they have to learn it all.

That is the issue as it evolves. So we are all bits in the stream, bits of what? I am not sure if anyone can tell at present, but good luck trying to figure out where you are placed and where you stand, because resolving that will place you in a much stronger position than you were in this morning.

 

Leave a comment

Filed under Finance, IT, Media, Politics

Tagged as , , , , , , , , , , , , , , , , , ,

March 31, 2015 · 22:58

Chicks for free

Yup, that is the name of the game, how to get your chicks for free. You can go towards the end seeing what you can pick up from the free handing from the tray that serves the drinks and babes, but the song is not that simple, you see The Dire Strait sang: “Get your money for nothin’ get your chicks for free“. The song refers to doing things for fun, when it is fun, at times it feels like you are not working at all.

In my view the expression has evolved. As I see it, ‘money for nothing‘ is more and more about value for money. Deals that are too good to pass up. Here we now get to the issue at hand. We look at players like Apple (with their iPhone), Google (with their Nexus) and several other players like Nokia, Microsoft, Samsung, LG and a few others, yet the one player many ignored, namely Huawei did what others would not in their iterative field of exploitation. They decided to give the people value for money, not some half-baked offer, but the power offer that the models P7 and Mate7 are bringing. The P7 priced at almost 50% of the old models of most is more than a contender, in addition, the Mate7 offers a massively stronger device than the new models from Samsung, Apple, LG or Nokia can offer, hundreds of dollars cheaper. So now we get to the BBC article (at http://www.bbc.com/news/business-32126628). So the quote “The world’s second biggest telecoms equipment maker said its net profit was 27.9bn yuan ($4.5bn; £3bn), up from 21bn yuan in 2013” is not all about mobile phones, but Huawei is now quickly showing to be the number one choice for consumers and students (consumers, usually lacking in funds) alike. It seems to me that even though there is a decent group with funds that is all about value for money and that group has been ignored by the providers at large, which means that Huawei is now sweeping the nations on a global level. There are two parts in the story, which become a concern.

The first one is “Huawei’s growth comes despite it facing challenges in several major economies. In the US, it was branded a national security threat by legislators, because of its alleged close ties with the Chinese government“. There is no clarity on how precise this quote is (the next one will touch on this). So, if the statement is true, how about OOCL (containers) and Evergreen (Taiwan containers). Are they a security threat? I think it goes further, as some players were sitting on their hands, Huawei has been growing the business globally, now they are ready to get into bed with ‘facilitators’ in a very wide area of business. If we look at the Huawei Tecal servers we see a device that goes beyond simple needs. Its citrix compatibility gives a first view that soon Huawei will be the number one choice for new SaaS solutions, mobile providers of consultancy but from a cloud environment, meaning that these new engineers will be global. They are not ready for the next part yet, the issue is not just the data; it is about the transit mode of data for Huawei. They are now one step away from nibbling at the feet of Cisco. Cisco is comfortable for now, but that could soon change. You see, in 2012 Huawei was not ready for any of it, but they remained quiet for 2 years whilst their consumer market grew, now within a year, if their router solutions are decently shielded, they can move forward.

Now we get the second quote: “Meanwhile, it has been banned from being involved in broadband projects in Australia over espionage fears“. Really? So American solutions are not any kind of espionage fear? I am not judging, it seems to me that either our personal data goes to America or China. The article does not seem to elaborate on this part. This we see in the final quote of the article: “However, the company said it was well positioned to capture business opportunities with heavy investment in innovative areas such as cloud computing and fifth generation (5G) mobile technology“. Personally, I do not think that 5G is anywhere near an option for providers of mobile networking at present in any affordable kind of way, but the cloud is another matter. Whatever next part will be used to get business growing and moving forward will require the cloud. Yet, as I saw it for the last two years, security is just not good enough, not from any provider. That part can be seen in this place: http://2015itss.ucdavis.edu/event/the-weak-link-in-cloud-security-2/, here we see the following: “This session will illustrate and demonstrate that the very collaborative nature of SaaS (Software as a Service), such as Box or Google Apps, may also be their weakness. When organizations adopt cloud applications, users must take care to ensure that the organization’s sensitive cloud data does not end up in the wrong hands“. This is at the core of one of several issues. SaaS is only one part. The adoption and implementation is at the centre of a cloud that could be the fog that keeps us all blind as we lose data towards whatever provider of consultancy requirements were miscommunicated too. What a weak data web we weave for ourselves!

This event in June 2015 shows several more issues that we all in business need to consider as we are at times decently in the dark of that what must happen and that what needed to be done. The reality is that Huawei is not even a factor here, this all becomes an issue in any implementation. So why is there no clearer broadband issue? Is there truly a Chinese espionage fear, or are some players too dependent on whatever solution SaaS offers and in this stride, data leakage will be an issue from day one, whether the owner of the solution is Chinese or other. What is without a doubt is that Huawei is making massive strides, they are doing it in places where they were not a consideration 6 months ago! So what is wrong with the picture I am showing you?

I am not showing you any picture, but I am implying that the other big players (all American) are currently losing out on business, on revenue and on profit.

I wonder how the Dow will take it!

 

1 Comment

Filed under Finance, IT, Media, Politics, Science

Tagged as , , , , , , , , , , , , , , , , , ,

February 8, 2015 · 23:08

The next cyber wave

The news is almost two weeks old. There was no real reason to not look at it, I just missed the initial article. It happens! This is also at the heart of the issue on more than one level. Consider the quotes “The first 13-week programme for Cyber London (CyLon) will kick off in April, with a group of startups drawn from industries including defence, retail, telecoms and health services” and “On the one hand, the government is keen to invest in cyber-security startups: witness chancellor George Osborne’s announcement that GCHQ is investing “£3bn over nine years into developing the next stage of national cyber intelligence”“. So is this just about getting your fingers on a slice of this yummy slice of income? You see, this issue skates on problem that I (many others too) saw that Common Cyber Sense existed, but the bulk of companies treated it as an overhyped requirement. Yes, those managers were always so nervous when they got introduced to ‘costs’. I reckon that the Sony hack will remain the driving force for some time, in addition several business units are more and more in need for some better up to data encryption, so this cyber wave is getting some decent visibility. So as we look at the title ‘Cyber London aims to make the UK a launchpad for cyber-security startups‘ (at http://www.theguardian.com/technology/2015/jan/28/cyber-london-accelerator-cyber-security-startups).

There is no denying that the call of 9,000 million is a strong one, especially in this economy. More important, as more companies are gripped by a decent amount of fear regarding their own future, this event will be at the foundation of several longer running projects and corporations. There is of course question on what is real. That question becomes an issue when we see that even now, rumours still emerge on what happened in regards to who did the works on Sony and how it was done, especially in light that the article in Business Insider claims that the hackers still have access. The latter part will be speculated on by me later in this article.

For the most, the next cyber wave is a good thing, especially when thousands of data holders realise that their corporate future depends on keeping these systems decently safe. I use the term decently safe, because ‘complete’ safety is not something that is achievable, not on budget levels that many depend upon. Yes, security can be better and a lot of companies will invest, they will raise the threshold of many companies, yet will they raise it enough? That is at the foundation of what is about to come.

I predict that these startups are all about consultancy and some will offer products, some on safety and some on encryption. Encryption will be the next big thing, the question becomes how will encryption be properly managed? There are plenty of people who enthusiastically encrypt files and after that forget the password. So what then, all data lost? So, you see that clever solutions are needed, which will bring forth a new wave of solutions, new barriers and new bottlenecks. I wonder if these new startup firms have considered a trainings division, not one that is all about ‘their’ solutions and ‘their’ products, but all about raising proper awareness for Common Cyber Sense.

Training that is meant to give long term knowledge to people working at a firm as well as setting a proper initiation of knowledge with these companies, so that a wave of change will not start a rollercoaster of people jumping from firm to firm, a risk many companies will predict to hit them.

Now it is time for some speculation. I have been thinking on how Sony was hit. I came up with a possible idea on New Year’s Eve. When I wrote this part: “In my view of Occam’s razor, the insider part is much more apt”, my mind started to wander on how it was done.

Speculation on the Sony Hack

The inside story is on the hack of Sony, yes, there was a hack at some point, but, in my view, that is not what actually happened. a destruction was started, but that is not what started it, that is how it all ended. When I did my CCNA (2011), I had the initial idea. You see, hacking is about data at rest, so what happens when the hack is done when data is in motion? That part is often not considered, because it seemingly unmanageable, but is it? You see, when you buy the Cisco books on CCNA you get all the wisdom you need, Cisco is truly very thorough. It shows how packages are build, how frames are made and all in great detail. That wisdom can be bought with a mere $110 for two books.  Now we get to the good stuff, how hard is it to reengineer the frames into packages and after that into the actual data? Nearly all details are in these CCNA books. Now, managing hardware is different, you need some decent skills, more than I have, but the foundation of what is needed is all in the Cisco IOS. The hack would need to achieve two things.

  1. The frame that is send needed to be duplicated and ‘stored’.
  2. The ‘stored’ data needs to be transmitted without causing reason to look into spikes.

I think that ‘hackers’ have created a new level (as I mentioned before). I think that Cisco IOS was invisibly patched, patched, so that every package would be stored on the memory card in the router, in addition, the system would be set to move 2% during the day to an alternative location, at night, that percentage would be higher, like 3-5%. So overnight, most of the data would arrive at its secondary location. Normally CCNP technologists with years of experience will look into these matters, now look and investigate how many companies ACTUALLY employ CCNP or CCSI certified people. To do this, you would need one insider, someone in IT, one person to switch the compact flash card, stating 64Mb (if they still have any in existence) and put the sticker on a 512Gb Compact Flash card. Easy peasy! More important, who would ACTUALLY check the memory card for what was on it? The Cisco people will look at the startup file and only that one. The rest is easily hidden, over time the data is transferred, in the worst case, the culprit would only need to restart the routers and all activity would be completely hidden, until the coast is clear, afterwards the memory cards would be switched (if needed) and no trace of what happened would ever be there. What gave me the idea? Well I wondered about something similar, but most importantly, when I did my CCNA, the routers had 64Mb cards, I was amazed, because these suckers are no longer made, go to any shop and I would be surprised if you can even find any compact flash card smaller than 16Gb. Consider a place where Gb’s of data could be hidden under the eyes of everyone, especially as Cisco IOS has never been about file systems.

When the job was finished, the virus could be released damaging whatever they can, when cleanup starts, every aspect would be reset and wiped, whatever the culprit might have forgotten, the cleaning team might wipe.

So this is my speculation on how it was done, more importantly, it gives credibility to the claims that the hacks are still going on and the fact that no one has a clue how data was transferred, consider that this event was brokered over weeks, not in one instance, who else is getting their data syphoned? More importantly have these people involved in this next cyber wave considered this speculated path of transgression? If not, how safe would these systems end up being?

Let’s not forget that this was no easy feat. The system had to be re-programmed to some extent, no matter how enabling Cisco IOS is, this required top notch patches, which means that it required a CCSI or higher to get it done, more important would be the syphoning of the data in such a way that there would be no visible spike waking any eager beaver to prove themselves. That would require spiffy programming. Remember! This is all speculation; there is no evidence that this is what happened.

Yes, it is speculation and it might not be true, but at least I am not pointing the finger at a military force that still does artillery calculations with an abacus (another assumption on my side).

There are a few issues that remain, I think upping corporate awareness of Common Cyber Sense makes all the sense in the world, I reckon that the entire Cyber Security event in London is essential and it is good to have it in the Commonwealth. This industry will be at the foundation of growth when the economy picks up, having the UK play a centre role is good strategy and if it does evolve in the strongest way, a global financial node with improved cyber protection will lead to more business and possible even better business opportunities. This event also gives weight and view to my writing on January 29th and a few other occasions “As small innovators are given space to proceed and as larger players are denied blocking patents to force amalgamation of the true visionary into their moulding process that is the moment when economies will truly move forward. That is how you get forward momentum!“, this is something I have stated on several occasions and I truly believe that this will be the starting pulse to a stronger economy. It seems that the event creators Alex van Someren of Amadeus Capital Partners, Grace Cassy and Jonathan Luff of Epsilon Advisory Partners, and advisors Jon Bradford of startup accelerator TechStars and Eileen Burbridge of venture capital firm Passion Capital are on such a path. No matter how it is started, they are likely to get a first leg up as these startups will truly move forward. As the event stated: ‘No equity taken’, but it seems to me that on the receiving end of implementing working solutions, finder’s fees and linked contracts could be very very profitable and let’s face it, any surfer will tell you that being at the beginning of the wave gives you the best ride of all.

Let’s see what 2015 brings us, startups tend to be not too boring. Not unlike startups, so will be more waves of speculations on how Sony was hacked, the US government will likely continue on how North Korea was involved and at the centre of it all.

 

2 Comments

Filed under IT, Media, Politics, Science

Tagged as , , , , , , , , , , , , , , , , , , , , , ,

December 19, 2013 · 05:12

Buying cheap intelligence goods

Well, another week, another story about the world’s favourite traitor Mr Edward Snowden. The latest information as shown by Sky news is that he offers Brazil to defeat US spying, but it starts with a permanent political asylum. So, Brazil would end up spending way too much on a person who is likely not fluent in any way in the Portuguese ways.

So, after he ‘walks away’ from China and as Russia seems to be a non-option, Brazil now gets a shot at buying that diamond in the rough for only $2.99. Is no one picking up on this?

My advice to the Brazil government is that if you want to secure your systems in a proper way, get someone with a decent University degree with additional papers and knowledge of Cisco systems. Both will allow for the implementation of Common Cyber Sense. Now, this might not stop US spying, but it will make it a lot harder for them. In the end, if a Brazilian official opens a mail with a ‘personalised’ letter from some sexy ‘Miss X’, hoping for a dinner date, then the worm that opens their security would already be installed again. So, your system might not remain that secure for long. Still, getting the proper professionals will help.

I just do not get it, a person that is regarded as ‘non-valuable’ in both China and Russia, is now hoping for some future in Brazil? I reckon that Brazil might not want these complications in any way or form. Do you think that IF Snowden was such an asset that there was not some ‘loophole’ in place where he would have been able to spend a permanent comfortable time in either Russia or China? America had been playing that game for decades (even for non-intelligence and zero economic value holding trained ballerinas). I see it in a more simple way. Snowden walked away with a treasure chest, there are plenty of issues on the validity of the bulk of what he had, but now that he is on the outside, that one chest will have to last him a life time. The strongest issue that seems to be ignored by EVERYONE in the press is on how the NSA failed to the extent that he was able to walk away with this amount of data, more important, who is he selling it to?

I am not talking about governments and their intelligence groups, but the commercial branch of many corporations who might want to take a deep look at all this data.

So here we are reading another iteration of the Snowden joke and at present the press seems to ignore many of the most common sides that we should worry about. Some might have read the statement that General Alexander gave. Funny enough, the issues he stated and the acts he described were close to identical to the issues that I mentioned no less than 5 months ago. Many of them were the paces that any IT professional would have seen. No, it is just so much sexier to just take over the issues the Guardian took to heart. I am not stating that what they wrote were not based upon ‘facts’, but the source is already proving to be extremely unreliable and even less bothered by the integrity he proclaimed to have. Also, when people compare him to Julian Assange, then consider that I still have my doubts about Assange, but at least he always remained on his horse of idealism, not one I truly support, but I get to some extent the windmill he believes that he had been fighting. It makes the two worlds apart and in case of Snowden in a very negative way.

So back to Snowden, what to do about him?

Although I am all for the ‘drastical’ solution we reserve for certain types, it is important to get him into the US (alive) and into the interrogation room. You see, he got a boatload of data out of a building that should not have allowed the opportunity for this to happen. Even though the American alphabet groups have their own issues as they used private contractors like Booz Allen Hamilton, certain security matters are now at the forefront of whatever they will try to do next. This is not an accusation against BAH, I am convinced that the bulk of these people are devoted nationalists and American patriots. I reckon 99.1% would never consider doing what Snowden did, this makes for a case that there are a few still walking around contemplating what Snowden did. We need to learn what weaknesses the NSA had. Not because we truly care that much (Americans definitely might), but if it happens there where they have an overwhelming budget of many billions, what issues can we expect to find when a light is brought on both the DSD and GCHQ? Let’s not forget that they get a combined budget less than 1% of what the NSA has at its disposal. I feel that direct treason is not likely to happen, but overall, there is the danger of intrusions and even the danger of data heists to some degree. It is that degree that will bear scrutiny. So the open question ‘How easy is it to get data out of the agency?’ is a question that needs to be addressed by several governmental parties.

So back to this Snowden fellow, when we see the LA Times (at http://www.latimes.com/opinion/commentary/la-oe-mcmanus-column-metadata-snowden-20131218,0,4977259.column#axzz2nqe1wbKe) we see other parts of this discussion. There are two quotes in this piece “Congress is debating several proposals to rein in the program, including a bill that would effectively end it.” This is of course a valid option, for one, the US is still a nation governed by laws, and Congress can put in place a policy to change it. Let us not forget now that the bad guys know (thanks to the Guardian amongst others) what is being done; only the stupid terrorists will get caught and they would have gotten caught anyway. The second one is a little harder to discuss “I cannot imagine a more indiscriminate and arbitrary invasion of citizens’ rights”, District Judge Richard J. Leon wrote in a blistering opinion. “The author of our Constitution, James Madison would be aghast.” I feel uncertain to agree with his honour Justice Leon. In the end citizens’ rights were never in danger, we could state that only terrorists were in danger, all were collected to see whether they were a terrorist or not. It could have been stated that if Senator McCarthy had access to these systems, would innocent people ever have been targeted? That is at the centre of this. There people SUSPECTED of communism were destroyed, here they are trying to find the real terrorists. In the end the McCarthy issue went a lot deeper, but at the core we have this notion, is it un-American to object to these methods (if you are an American)? There was never a case for innocent people. There is even the notion that criminals, drug dealers and others could never be gotten at through this way, it is a method to find the hidden dangers of terrorism. In addition, his honour should not forget that it was the legal branch that enacted the Patriot Act the way it was. It was for the most, the legal branch that ‘wallowed’ in ambiguity, which allowed for most of these far fetching ‘freedoms’.

It gets a lot more fun if we consider the article the Guardian published a month ago (at http://www.theguardian.com/world/2013/nov/01/nsa-keith-alexander-blames-diplomats-surveillance-foreign-leaders)

So as General Alexander answered: “the NSA collected information when it was asked by policy officials to discover the ‘leadership intentions’ of foreign countries. If you want to know leadership intentions, these are the issues,” the NSA director said. So basically, the NSA responded to questions by the policy makers. (perhaps the same policymakers who are now proposing a bill to end all this?)

So, who exactly is this pot which is calling the kettle monitored?

It is the Australian that gives us the final part (at http://www.theaustralian.com.au/news/world/us-nsa-spy-agency-is-split-on-snowden-leaks-deal/story-e6frg6so-1226783316594), which discussed a few parts last Monday. The issue of making any kind of a deal with Snowden should not be considered. “General Alexander said an amnesty deal would set a dangerous precedent for any future leakers.” The other quote, which came from Rick Ledgett who stated “Mr Snowden would have to provide firm assurances that the remaining documents would be secured“. This is an assurance that has no holding whatsoever. After the Chinese and the Russians were done with him as well as the Guardian, any ‘security’ to these documents is nothing more than a hollow promise. I personally find it disgusting that treason to this degree could end up being non-prosecuted in any way, shape or form. It is more than a dangerous precedent. It is an almost assured way for fake ideologists to take a roll at the casino for a few million and an optional new passport. It is a dangerous game that will hold long term consequences for all involved.

Leave a comment

Filed under Uncategorized

Tagged as , , , , , , , , , , ,

June 23, 2013 · 19:55

Who are the real watchers?

It is 02:00, SpyHardwareI slowly move into the building that is owned through puppet corporations. The true owner is no one less then Vladimir Kumarin, the most powerful man in St. Petersburg. Entering the building is relatively simple. I avoid the guards, one almost saw me. It is tempting to use sentry killing, but the body will be found. There can be no trace. I install the small remote webcam. Hacking into his wireless router is relatively simple. It is military grade, but my link to the Cray Titan in Langley soon has that fixed. The router got hit by 400,000 requests a second. It cries for its mamma in less than 7 seconds, a new record. I am in and ghost accounts are set up less than 15 seconds later. The scripts run without a hitch. a low tech wireless microphone is set up 3 minutes later. That is the one they will have issues finding, but it will be found, so the rest remains invisible. I leave silent as the night, no trace left and less than 2 hours later I look like a drunk American exchange student studying in Sweden, on a train to Helsinki.

Yes, it reads like such a nice story, but none of it is true! Thinking of Splinter Cell’s Sam Fisher, I am not even that good a spy writer, so I will leave that skill to Mr Clancy. The closest I get to action is the Xbox360 edition. Suits me just fine!

If we look at today, then all we need is a little box that fits into the palm of our hand. We sit in a coffee shop where the ‘privileged young executives’ tend to show off their expensive mobile, laptop, slightly overcharged suits and they look for that young lady dressed to… ‘Impress’. He then logs in does some basic wizardry stuff and considers himself in the running for a possible afternoon of great sex. That was his plan, will she bite? Nearby is a guy who no one notices. He wears a polo-shirt, likely cargo pants too, has a crossover bag and is typing on his laptop. He looks like many Uni students that get casually ignored. He was waiting for the guy (or anyone like him) to show off. He did just that, and less than 3 seconds after the information is typed in, he has link and login details. He now knows what network he can invade. Perhaps the young executive is lucky and he is of no value. If not, his account is broken down and thousands of dollars on internal communications, price agreements, customer’s details and many more details are now duplicated. It would be worth quite a few coins for the right competitor. As such the quiet student will have all his Uni debts paid off long before he gets his degree. So, what is this about?

You see, the Guardian today is having another go at the intelligence industry. I am referring to http://www.guardian.co.uk/uk/2013/jun/21/gchq-cables-secret-world-communications-nsa. Here they discuss several acts that GCHQ has allegedly involved in. My issue is with this part of the sentence “process vast quantities of communications between entirely innocent people“. Is that any different from what Social media and market research is doing? Let us not forget it is all about the latter part of that same sentence “as well as targeted suspects“.
If there was a way to just focus on that 0.0003% of that population, then it would be easy. But life is not that easy as we learn ourselves on a very daily basis. The only issue I truly have with that article is “Snowden told the Guardian. ‘They [GCHQ] are worse than the US’”. Really Mr Snowden? Let us go over those facts again. First he betrays his country. He is not some guy who got into the thick of it. He first does not make it past basic training. He then gets a chance to serve in the CIA (whomever gave him that brake is truly regretting that act I reckon). He then walks away and joins the NSA. Is there anyone not having any questions at present? So, he knows what is required and then he walks away and not just to anybody. He runs off to Hong Kong. In my mind, he must have thought that the Chinese cyber division would want to offer him a cushy job. But these boys would see through him in no time. Those savants know every in and out of every bit a Cisco system routes, how it does that, why it does that, and where the threats are. Snowden does not instil that level of ingenuity to me. So again, he did not go to some non-extradition country out of conviction (like Ecuador), no he went straight for the ‘enemy’ and is now allegedly enjoying Borsjt and Blackbread in Russian company.

Let us get back to the issues that really matter. This is not about those who claim to be ‘entirely innocent’. This is not even about your average criminals that much. GCHQ is one part to keep England safe. As described earlier, security is no longer done through a backpack full of tricks. The bulk of today’s danger comes to individuals we know not where, and it arrives to them in the simple form of a message. It could be an e-mail, an SMS or even a chat message left on a gaming site. To find them GCHQ needs to get to them all. Do you think they read these messages? That is not humanly possible, every second internet information is created that would take one person a lifetime just to get through. So it becomes about flagging. We can look at two flags. 1 flag is green and is zero threat. That is well over 95% of all communications. This also includes all the dicey and spicy spam messages we get. In effect, they know where it came from, where it is going to. The people they seek are of a different variety. They are all about not being able to detect, or to detect the origin. That is already less than 0.3% of all these messages. Then we go on and on. 1% out of that 0.3% is now a possible threat. Is it? They do not know yet, but the amount is now so small, they can actually start taking a look at the facts. Even then it could be harmless, yet many millions were crunched into less than 1000. That group might be part of the second flag. Even that number is still too high. As time progresses more is crunched and then those people at GCHQ will really go to town and pass on what might be a threat. So, was there an issue? You might think that it is, but if you are entirely innocent then the chance that they saw your data is actually so small that winning the lottery has a much better chance. Do I worry? Hell no. My usage is even less than that. Many download movies, some download pirated games. None of that interests the Intelligence community. They want to learn one thing. Where is the threat to us coming from?

The bulk of us will not even register on their radar. If we rely on the numbers in the article “By May last year 300 analysts from GCHQ, and 250 from the NSA, had been assigned to sift through the flood of data.” that is 550 people to sift through amounts of data that is so much that 1 minute of generated internet traffic will require them all to work their entire careers to sift through that much. Reading our emails? We are just not that important and we likely never will be.

If you are worried, then worry about real threats. The real non-terrorist threat out there today, are the many normal people, not using Common Cyber Sense as they use free internet to do what they need to do from the comfort of their non-desk. Those are the people endangering YOUR data, because they are out to get some personal gain.

1 Comment

Filed under Media, Military

Tagged as , , , , , , , , , , , , , ,

February 22, 2013 · 15:01

They’re consoles, but not as we know them!

Have you been looking forward to the Hype start of the PlayStation 4 yesterday? I was not. I did not waste time waiting for some stream to start with all the other people who were waiting to be the first to know. Millions of viewers and all were watching the same stream at the same time. I was not. Don’t get me wrong. I love games as much, if not more than the average player. But to quote Mr William Shatner in a very appropriate manner: ‘Get a life!’

So, when I looked at some of the details after the first wave, I had an option to sift through the information, and a few very scary thoughts were starting to form. The steps taken are very very appropriate (from the viewpoint by Sony), yet, we are about to get an entirely new wave of revenue driven groups, and before too long, it will cost you!
This might even more then you bargained for and there might be little to no chance to avoid it with all impending consequences. What am I talking about? Let me explain!

First the mundane stuff:

It is mentioned to have eight cores and an enhanced PC GPU. This system will work at speeds approaching 2 Teraflops. There is a lot more, but the issue is set in the next part I mention: “PS4 to include cloud and game live-streaming functionality; focus on social networking; global Gaikai network rollout.” (Source: Gamespot).

Am I just spouting out some facts? Perhaps, however, consider that managing multi core processor systems are a lot harder than most people realise. However, inserting code that accesses non-used, or less used processors is hard, but when active, they can remain undetected for a long time. Now add the thought that such malignant code is added through the DLC that is added to the game and we have a silent data screamer. This is the other less known side of anti-viral solutions. Data viruses are almost impossible to track, unless you track EVERY process, which slows down any system scanned.

Its opponent, the new XBox720 is still a question mark. There are loads of rumours, however, no real facts. It is however very likely that the Social Networking issue will be included. This is going to be the real problem.
This step was unavoidable.
Let’s face it, Facebook changed the world forever! However, if we take into account the shadier side of social networking (aka cyber criminals) then you might begin to realise that your goose could be cooked. We are not talking about an account that gets hacked. No, that would be too simple. For this part, we need to take an additional look back towards last October where insurers were mentioning that mentioning absences on social media might have consequences.
In December 2012 the insurance council of Australia made this quote: “The insurance industry is urging holidaymakers to keep their travel plans off social networking sites such as Facebook and Twitter to reduce the risk of burglary over Christmas”. This is actually late in the game as the British Insurance Age wrote this in June of 2012: “Social media-savvy young people could represent an emerging market for on-line risk insurance cover, according to research conducted by the Chartered Insurance Institute (CII)” So, here we can pretty much replace the words ‘emerging market’ for ‘additional costs’.

There has been the odd wild story on how a person tagged in a photo on Facebook through their smart-phone was enough for burglars to know that a house was empty. Now we add Social media to a gaming console? I could go for the kids and computers next, however, the bulk of gamers on systems like that are likely to be adults. Being adults does not mean that they are in ample supply of Common Cyber Sense. Let’s face it; loads of advanced users tend to lack such skills. In addition, we will now have to contend with consoles in need of Anti-Viral Software (to thwart Social media Cybercrime) and a league of other issues.
Let’s mention the issues that Sony had in the past with their hacked databases. Should we wait for the first time loads of credit cards go into some auto-donation mode? (With cybercriminals as the designated benefactor). I am not kidding! Yes, you will hear on the amount of safety Sony has, and the people will be perfectly safe. Spokespeople and Marketing spins will all make the case that we are all perfectly safe. So, let me remind you, or if you did not know inform you that in April 2011 the information of 77 million account holders were stolen from the Sony network. On May 4th of that year Sony confirmed that personal identifiable information was stolen.
Now they want to add their console to social media?
How long until the insurance company wants additional policies? How long until the insurance company decides that ‘it’ is not covered? Who will pay then? Sony? Or will they say “Oops! We so Sorry!” and leave you hanging with the consequences of the event.
I am not having a go at Sony here (even though it sounds like it).
There are several factors that should be seen as hazardous to the gaming health if those new console owners continue in an on-line/cloud gaming experience. First of all, cyber laws are shaky on several levels, especially when foreign criminals are involved (finding them is often a near impossibility). There is evidence on several levels that most of us are not ready for this level of integrated social media. Not because we do not want to, but because our systems can be invaded on many levels at several points. This is the consequence of evolution and people going to the edge of new technologies. At some point it becomes a clear that adding more and more is becoming counter-productive.
Then there is the part of additional revenue. Sony and Microsoft want all these sides to social media, for the simple reason that all that information is worth a massive amount of money. ‘free’ data, all there waiting to get scooped up by the container load. Would we get paid for this? Very likely not! How long until a non-adult gets to click ‘yes’ on an option so he/she gets it for free? Who is then liable when things go wrong? (When they go wrong, not if they go wrong!).
These are all the dangers of social media on the internet. Then finally there is their mention of Cloud gaming. Another new Hype that will be added for gamers. Yet, there are several levels of dangers. This is not just something I am claiming. Several exports on this field from data providers to the technology providers at Cisco make mention of this. They are warning us on levels of dangers when it comes to Cloud issues. So, the cloud, especially with data at rest will need several levels of monitoring and all this takes resources. So, how will we be charged for those? You can bet your house on the dangers that ‘free’ options there will come at a much higher price down the road and not unlike Facebook, should you stop gaming, then what will happen to the data?
The weird part is that most of these issues belong in medium to large sized companies with able IT coverage. Not in the average household where the IT expert is 11 and has a Nintendo 3DS!
Should you consider this and wonder how much time you have. Well, this console is to be released in 2013 and disaster could strike in 10 months, 10 days and 10 hours from now. Questions need to be asked, and those who protect the gamers (read citizens with a console) need to realise now that ALL data can be gotten to by cyber criminals, and in many commonwealth nations the law and the law enforcers are not up to scrap within that timeframe.
My biggest issue?
A device meant for entertainment is thrust into a grey area of legislation for the benefit of massive amounts of revenue. The moment our personal data goes somewhere else, those who enabled this in the first place will likely pass the buck to an area of non-accountability.

Leave a comment

Filed under Gaming, IT, Law

Tagged as , , , ,