Thursday, August 13, 2009

Data centers to target SMB market with new "Cloud Offerings"

Serguei Beloussov, CEO of Parallels, believes SMBs represent a major opportunity for hosting companies. For a review of his comments at a gathering of hosting companies in Washington, DC this week at HostingCon 2009 check out this article . You can also see a preview of the SMB offering here.

If you are an SMB IT consultant, how do you view the emerengence of the "Cloud"?

At SMB Nation-East this past spring - Jeff Middleton of SBSMigration.com offered some interesting insights. If I recall correctly (Jeff please clarify), he viewed the cloud as the combination of (1) virutalization technologies, (2) data center resources (physical security, power and connectivity)and (3) hardware. In May, he suggested this combination could very well be a threat to the traditional IT professional serving the SMB market.

What do you make of the product offerings of Parallels? Friend or foe to the SBS community? To your livelihood?

Eriq Neale of Third Tier and Kevin Royalty of Total Care Computer Consulting will present on the implications of cloud computing and other exciting issues under the topic: Life without Microsoft at SMB Nation this Fall in Las Vegas. This should be interesting and lively!

Do you have a "cloud" strategy?

Wednesday, August 12, 2009

"Patch Tuesday" reinforces role of managed service plans.

The flurry of security patches the last few days has lots of IT proefessionls wuite busy. Microsoft has released nine critical/important security updates (with exploits already in the wild) and Apple and Adobe have also released a string of patches. Given this breadth of "Patch Mania” among top tier software vendors used by nearly everyone, it’s a perfect opportunity to highlight the role of managed services and how it integrates with good security and patch management.

Did you go sleep last night with your doors open? Your IT network may have…….


Large software companies like Microsoft spend lots of time and money to fix security holes in their software called "Vulnerabilities" (e.g. Greek myth of Achilles and his vulnerable heel). These flaws are frequently discovered by unlucky victims and are inevitable in the world of software. See Wikipedia Article.

The fixes generated by the vendors for these vulnerabilities are called "Patches." Patches should not be considered optional and are frequently misunderstand as simple software upgrades. Vendors attempt to highlight the significance of these patches using jargon that may add confusion (at least to the average person). Vendors label these “bug fixes” as security patches, rank the severity of the vulnerability (e.g. how damage can be done) and rank the level of importance of the patch as Critical or Important. See Wikipedia Article.

Hackers develop “Exploits” to capitalize on these vulnerabilities. Exploits are essentially the tools of the black hat hacker to do the dirty work and break into systems. Exploits can be launched when using software applications (e.g. Word, Excel, Adobe, etc.) or directly as network layer traffic that is invisible to the end user and many low grade firewalls. Exploits are rapidly distributed and easily available across the Internet through a series of underground websites and chat rooms. See Wikipedia Article.

Hackers who develop and utilize these Exploits are financially motivated. They steal private data to access accounts (e.g. credit cards, bank accounts, etc.), hijack IT resources, host illegal content (e.g. pornography and stolen software) or commit fraud through fake transaction. This is big business and involves organized international crime. Their objective is to hack the vulnerable network or computer before it is patched. See Wikipedia Article.

Example. A parallel example in the world of physical security can help explain. Leaving computers and software unpatched is like leaving the windows or door of a retail store on the first level of a New York City (or Charlotte) high rise unlocked and wide open during after hours. In the case of the Interent, the entire online world might be able to access the vulnerable IT network.

Solution. Don’t be the low hanging fruit or easy victim. Practice good corporate IT hygiene and follow some basic best practices:

Avoid being an easy target for the bad guys by patching machines and software applications as soon as possible when alerted by key vendors.

Implement proactive patch maintenance to accelerate and streamline the process to eliminate employee downtime and shorten the window of vulnerability.

Implement a layered defense that provides adequate user level control and reporting, network visibility and security and diagnostic tools.

Third Tier partnership expands expertise

We are excited to announce today that we have partnered with Third Tier led by Amy Babinchak and Eriq Neale to offer advanced technical support and professional services to our Calyptix authorized partners. By leveraging AccessEnforcer and this relationship, we have forged a foundation that will enable small business IT professionals to tackle increasingly complex projects.

This partnership creates access through a single platform to extensive expertise on Microsoft technologies, UNIX, networking and security matters. We have run trial tests for several months and find the relationship works well and delivers tremendous value to the end customer.

When you choose AccessEnforcer for your clients, you now have access to subject matter experts that share a common focus and passion for working with small and medium businesses. See the full announcement.

Ready Set Patch! Microsoft Patches Flaws.

Microsoft has released its August patch for security flaws. Five are rated Critical and four are rated Important. You should address these promptly as Microsoft strongly suggests exploits are "in the wild." For more details see any of the links below flagged by Susan Bradley aka the SBS Diva.

Microsoft August 2009 Black Tuesday Overview:
http://isc.sans.org/diary.html?storyid=6937

The Microsoft Security Response Center (MSRC) : August 2009 Bulletin Release: http://blogs.technet.com/msrc/archive/2009/08/11/august-2009-bulletin-release.aspx

Security Research & Defense : MS09-039: More information about the WINS security bulletin:
http://blogs.technet.com/srd/archive/2009/08/11/ms09-039-more-information-about-the-wins-security-bulletin.aspx

Security Research & Defense : MS09-037: Why we are using CVE's already used in MS09-035:
http://blogs.technet.com/srd/archive/2009/08/11/ms09-037-why-we-are-using-cve-s-already-used-in-ms09-035.aspx

Security Research & Defense : MS09-035: ASP.NET Denial-of-Service vulnerability:
http://blogs.technet.com/srd/archive/2009/08/11/ms09-035-asp-net-denial-of-service-vulnerability.aspx

Tuesday, August 11, 2009

Fortinet Launches IPO pointing to positive growth of UTM

Did you feel the earth tremble yesterday morning on your way to coffee? It was the underground vaults of Wall Street creaking open (maybe). At 07:34:18 yesterday, the SEC accepted filing number 333-161190 by Fortinet Inc. with respect to an initiially proposed public offering of up to $100 million of the company's common stock. The offering is being lead by Morgan Stanley with all the usual suspects ... Wilson Sonsini (company lawyers)and Davis Polk (underwriter's counsel).

Looks like the lawyers and bankers are back from the Hamptons, etc. (insert your favorite vacation site) and getting back to work. It will take a little while for the SEC to prepare comments and the lawyers to provide the filing amendments, but the August 10 filing date suggests a targeted offering for late Q4 or Q1 2010. The timing suggests Fortinet is counting on a strong 3rd and 4th quarter results for its UTM sales. You never spit into the wind - it gets ugly (ask the guys at SourceFire.

It is still early in the process but much can be gleaned from a review of the current filing and the amendments which should follow SEC review and comment. Check back for more details. It has been a few years since I dug into an S-1 so this should be fun.

A few areas worth investigating are (1) risk factors for references to open source technologies, virtualization and vulnerability management, (2) litigation, (3) preferred stock terms (and pricing), (4) issuance of equity in the last 3 years, (5) managment/founder's compensation and ownership and (6) related party transactions.

Maybe the value proposition of the UTM technology will resonate with Wall Street similar to what we are seeing on main street. There has never been a better time to sell more value for less and the UTM certainly does that.

Related articles Reuters, NY Times blog and SC Computing.

Friday, August 7, 2009

NC Approves Sales Tax on Digital Downloads


The North Carolina legislature has approved the final appropriations package for the $20B 2010 budget for the state (See legislation here) and presented it to our new governor. The legislation increases the state sales tax by 1% (effective Sept. 1), added a sales tax on "digital downloads" (including Apple iTunes) (effective Jan. 1) and various sin taxes (e.g. tobacco and beer).

I find it ironic that the state also approved an incentive package for Apple this year to the tune of $3 million a year initially and $12.5 million annually in later years. In return, Apple must invest at least $1B over the next nine years. See the legislation here (Senate Bill 575 ) and the story, house approves apple package.

There are actually two sales taxes related to online purchases. The first will assess sales tax on most digital downloads, including music, videos and ringtones, starting Jan. 1. That means a 99-cent iTunes download, for example, will instead cost $1.07.

The second Internet-related tax is more complicated. Basically, it will allow the state to begin charging sales tax Sept. 1 on purchases from online merchants who make sales through referrals from N.C. Web site owners. Amazon.com has such a program, but discontinued it in North Carolina in June to avoid having to assess sales tax. The N.C. Department of Revenue is still figuring out how to implement the online-related taxes, spokesman Thomas Beam said

For FAQs on the details, see The News Harold (Morganton, NC) online post.

Thursday, August 6, 2009

Using Twitter to see if Twitter is down

I've recently taken up the tactic of searching on Twitter to see if a public web service is down for other people or just for me (like http://search.twitter.com/search?q=opendns, although there are false positive issues with large services).

Surely that wouldn't work for finding problems on Twitter? Or would it?

http://search.twitter.com/search?q=twitter shows, at the moment, people complaining about Twitter being down or just coming back up. I would have expected to get totally washed away by other mentions of Twitter.

(http://status.twitter.com/ is probably the best way to tell, but knowing each service's status URL can be prohibitively headache inducing. :> )