Sunday, April 5, 2009

WSJ: IBM, Sun Talks 'Unraveling'

The Wall Street Journal reported Sunday that the proposed $7 billion dollar deal for IBM Corp. to acquire Sun Microsystems virtually collapsed this weekend.

Unnamed sources told the paper that price IBM offered -- ranging from $9.10 to $9.40 per share -- "wasn't the biggest issue." Instead, a combination of concerns, including how committed IBM is to the acquisition, reportedly left Sun's board "split" over the deal, with Sun co-founder and Chairman Scott McNealy in the against camp. This resulted in Sun turning down IBM's offer on Saturday, and IBM formally withdrawing the offer Sunday.



Reporters William M. Bulkeley and Don Clark wrote that the parties are still communicating via telephone, although the talks can be characterized as "confrontational," They also point out that even if successful, any merger could face difficulties from both European and U.S. antitrust regulators.

As of Sunday night, neither IBM nor Sun have commented on the report or the deal itself.

Read the full The Wall Street Journal story here.


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Saturday, April 4, 2009

PowerPoint Security Bug Found in Office 2003

A new zero-day remote code execution vulnerability has come to Redmond's attention, this time affecting Microsoft Office PowerPoint.

On Thursday, the software giant issued a security advisory about the potential exploit, which affects older Microsoft Office versions up through Office 2003. The current flagship Office 2007 product is not vulnerable.



Microsoft said it is only "aware of limited and targeted attacks that attempt to use this vulnerability." Users with fewer administrative rights could be less affected than those who have superuser or carte blanche access to enterprise systems, according to Redmond.

The attacks are triggered by getting users to click on a malicious Office file, either on a Web site or via an e-mail attachment, triggering malware on the user's workstation. To avoid such attacks, IT shops should have "untrusted software" policies in place, explained Paul Henry, security and forensic analyst at Lumension.

"This incident highlights the added value of application control in automatically affording protection by preventing any untrusted software," Henry said. "This [untrusted software] is software that is not explicitly permitted by policy and has been downloaded via the Internet, transferred via a USB stick or installed from a CD/DVD." The policy would prevent untrusted software from executing on a user's PC, he explained.

The PowerPoint flaw was considered "extremely critical" in a separate advisory issued on Friday by Secunia, a Denmark-based vulnerability research shop.  

As a workaround, Redmond suggested that IT shops can modify the FileBlock policy in the registry to block the opening of untrusted Office 2003, and older, binary files. They can also use the Microsoft Office isolated conversion environment. This update works with Office 2003 and Office 2007 products to "more securely open Word, Excel and PowerPoint binary file formats," according to Microsoft. 

Microsoft provides additional technical details on the PowerPoint vulnerability in its Microsoft Malware Protection Center and Microsoft Security Research & Defense blogs.

Microsoft plans to "continue to monitor the situation and post updates as we become aware of any important new information," according to the advisory.


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Thursday, April 2, 2009

Windows Server 2008 Foundation Unveiled

Microsoft on Wednesday announced an addition to its Windows Server product family, unveiling a new server specifically designed for very small businesses.

Windows Server 2008 Foundation supports file- and printer-sharing tasks for organizations with up to 15 users. Other functions enabled by the server include running applications, hosting Web sites and remote access. A Microsoft spokesperson said by e-mail that Foundation has the same security as Windows Server 2008 Standard, including BitLocker drive encryption.



Foundation supports Active Directory for managing user accounts and rights on the network. However, with Foundation, "Active Directory is only limited to the head node of a domain," explained Iain McDonald, general manager of Windows Server, in a video.

McDonald also noted that Foundation will not run in a virtualized environment. He explained the overall rationale for launching the product.

"We realized that there are parts of the economy that just aren't doing that well these days," McDonald said. "We also realize that there is a sizeable market out there where people are buying these lower-cost servers from various OEMs, so we created Windows Server 2008 Foundation."

Foundation will be sold pre-installed on machines produced by Microsoft's OEM partners such as Dell, HP and IBM "in the coming months," according to Microsoft's product announcement. A Microsoft blog described these machines as "low-end OEM servers that presently are selling at workstation prices" with a limitation of one socket and 8GB of RAM.

OEMs will set the price for the Foundation server products, and while these servers aren't on the market yet and pricing will vary per country, a Microsoft spokesperson noted that "HP expects a target price of under a thousand dollars."

For the most part, Foundation users will not have to purchase client access licenses (CALs) to run the server. There's an exception for Foundation users who want to run Terminal Services or Windows Rights Management Services. In those cases, users have to purchase standard CAL rights for each of those services.

So, Foundation users with simpler needs get a little break on licensing costs. In contrast, users of Microsoft's Windows Small Business Server (SBS), which supports up to 50 users, are required to purchase CALs.

Foundation lacks the all-in-one solution stack approach that Microsoft took with Windows SBS, which comes with Microsoft Exchange for e-mail, Forefront for security and SharePoint for collaboration -- all on top of Windows Server. However, not every small business needs all of that functionality.

And that's the principal reason why Microsoft came out with Foundation. It plugs a hole in Microsoft's Windows Server marketing, according to Paul DeGroot, senior analyst with Directions on Microsoft.

"SBS used to be simply the cheapest way to buy a copy of Windows Server," DeGroot explained in an e-mail. "It was cheaper to buy SBS, even with Exchange, than to buy Windows Server Standard. So if you are a partner and the customer just wanted a file and print server, you bought SBS and perhaps even ignored Exchange and everything else."

Microsoft subsequently increased the price of SBS, and that caused a rethink among potential buyers, DeGroot said. They now faced buying Windows Server just to get file- and print-sharing support.

"Microsoft created a hole in its product line, and Foundation fills it," he said.

Could small businesses use Microsoft's Windows Home Server (WHS) to meet their server needs, instead of Foundation? DeGroot said that WHS might even be a better solution for small businesses because of its backup feature. However, WHS is not licensed for business use "so Foundation Server provides a legal alternative for something like that."


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HP Selling Cloud Assurance to Enterprises

HP rolled out a service suite this week to help enterprise IT departments adopt and manage cloud-based services.

The suite, called HP Cloud Assure, is a turnkey package of services and best practices delivered in the cloud and performed "against the cloud," according to Tim Van Ash, director of product strategies for HP SaaS.



HP developed the software as a service (SaaS) bundle in response to enterprise user questions about cloud-based services, particularly with regard to "security, performance and availability," Van Ash said.

The new SaaS package includes HP Application Security Center, HP Performance Center and HP Business Availability Center, which are existing HP offerings for testing cloud-based services.

HP Cloud Assure is designed to address those functionalities in most cloud platforms, including SalesForce.com and Microsoft's Azure Services Platform.

"We can test, validate and monitor user experience in a variety of environments," Van Ash noted. "We monitor environments from more than 80 POPs [points of presence] located around the world, and we deploy load testing that can simulate hundreds of thousands of users."

HP Cloud Assure is subscription based, with modular offerings of one to three months for specific services, or a standard package of 12 months.

Van Ash said that HP "owns and runs" its Cloud Assure solution, which is delivered from a network of 45 large commercial datacenters.

HP's engineers perform assessments, ongoing management of service levels and customer support remotely. The "turnkey" package includes network scans, Web application assessments, load tests, network bandwidth tests and other operations that monitor and measure security, performance and availability, according to Van Ash.

The HP SaaS reseller program has been updated to include a "partner-led delivery option" for HP Cloud Assure.

"Currently, partners can provide the performance and availability components," an HP spokesperson explained. "The security component is currently being delivered directly by HP SaaS due to limited expertise in the marketplace around application security vulnerabilities."

Partners are expected to start delivering those two services by year's end.

HP defines cloud computing as "services that can be delivered and used over the Internet through an as-needed, pay-per-use model," according to HP's announcement.

More information about HP Cloud Assure is available here.


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TomTom Settlement Leads to FAT War

Microsoft and TomTom settled a patent dispute late last month that rang alarm bells among the open source Linux community -- and it still does.

The case began when Microsoft sued TomTom, an Amsterdam-based maker of GPS navigation devices for automobiles, in late February. TomTom then countersued. On March 30, Microsoft announced that the litigation was settled, explaining that the case involved patents on Microsoft's File Allocation Table (FAT) technology.



Microsoft's announcement also included an oblique reference to General Public License Version 2, a GNU open source license that permits the modification and sharing of Linux source code.

"The agreement includes patent coverage for Microsoft's three file management systems patents provided in a manner that is fully compliant with TomTom's obligations under the General Public License Version 2 (GPLv2)," Microsoft's announcement stated.

Under the terms of the settlement, "TomTom will pay Microsoft for coverage under the eight car navigation and file management systems patents in the Microsoft case." In addition, Microsoft gets covered under four patents mentioned in TomTom's countersuit, the announcement explained.

The five-year agreement covers past and future sales of TomTom's U.S. products. TomTom gets no payment from Microsoft and will remove FAT LFN technology within two years from its products.

In the wake of the agreement, The Software Freedom Law Center (SFLC) warned that the open source community likely faces future "patent aggression" from Microsoft, even though GPLv2 wasn't violated in the case.

Others chimed in, including Jim Zemlin, executive director of the nonprofit Linux Foundation, who recommended the removal of FAT by software vendors.

"The Linux Foundation is here to assist interested parties in the technical coordination of removing the FAT filesystem from products that make use of it today," Zemlin wrote in his blog.

TomTom may have settled with Microsoft concerning its FAT patents, but the SFLC saw no reason to do so.

"The FAT file system patents on which Microsoft sued are now and have always been invalid patents in our professional opinion," an SFLC statement explained. "We will act forcefully to protect all users and developers of free software against further intimidation or interference from these patents."


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Microsoft Rolls Out Windows Embedded Services

Microsoft on Monday announced a new services capability that's part of its Windows Embedded Server product line. In addition, the company plans to roll out additional support for developers working on embedded systems.

For original equipment manufacturers (OEMs) and partners, Windows Embedded Server now has a "software plus services" capability. This capability currently works with Microsoft's management products, enabling device diagnostics and maintenance support.



For instance, Microsoft's partners can use the Microsoft System Center Operations Manager solution to monitor Windows-embedded devices. In addition, they can use Microsoft System Center Configuration Manager for remote maintenance of those devices.

The software plus services capability in Windows Embedded Server offers options for Microsoft's partners, and possible revenue streams.

"For a lot of OEMs, the trend is they may want to build system network solutions," said John Doyle, Microsoft's group product manager with the Windows embedded business. "Embedded servers can also be used to store data, which can be used to predict failure times or improve business efficiencies," he added.

For instance, OEM partners can monitor robots using Windows Embedded CE in factories. The monitoring and data collection can be used to help prevent those devices from going down, Doyle explained.

Also on Monday, Microsoft announced two upcoming perks for developers of Windows Embedded Server products -- a new Visual Studio subscription option, along with a new update service.

The subscription option, called "MSDN Embedded for Visual Studio Professional 2008," will be offered in July. It's designed to help developers select the right tools for the job, providing access to Microsoft operating systems and technical support specialized for device-development tasks.

The new Visual Studio subscription option represents Microsoft's shift from delivering a "static toolkit" to device software developers, Doyle explained. Certain Visual Studio subscribers will get the new services automatically.

"If you subscribe and you already have an MSDN subscription above the premium level, then the tools will automatically come available to you in the July time frame," Doyle said.

The second perk for developers is expected to appear in the first half of 2010, when Microsoft plans to roll out a Windows Embedded Developer Update Service. The updates will provide partner technology support, device drivers and board support packages.

"With Windows Embedded Developer Update, we will have a client that will reside on the developer machine," Doyle said. "So within the developer experience using Visual Studio, that [client] will connect up to a cloud, a new Microsoft service, where we will present a catalog of information, which includes partners' or Microsoft's updates, new components or advanced components, and also Microsoft- or partner-certified content."

Developers face making a lot of decisions about technologies when programming for embedded devices, Doyle explained, which is why Microsoft is rolling out these two services.

Microsoft offers a number of embedded operating system products, which are described here.


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No Serious Threat from Conficker on April 1

The most recent variant of the Conficker worm, also known as W32.Downadup.C, is scheduled to update itself April 1. But analysts who have examined the code say it appears to be an upgrade of its defenses rather than an attack by a widespread botnet compromised by the worm.

"There is no reason to believe that April 1 will be any different from any other day," said Kevin Haley, director of Symantec Security Response.



The worm uses an algorithm to generate a pseudo-random list of domains for its command-and-control network, which its infected clients check daily for instructions. Symantec analysts believe that on April 1 the malware will begin using a new algorithm to determine what domains it will contact.

"It now generates 500 domains every day," Haley said. "It's going to do 50,000" with the new algorithm. Because a command-and-control server is a weak spot whose elimination can disable a botnet, the update could make Downadup more difficult to attack. But it does not mean the worm is more likely to attack others.

"This certainly is an issue of concern, but the probability of a major cyber event taking place on April 1 is really not very likely," said Vincent Weafer, vice president of Symantec Security Response. "In reality, the author or authors of Downadup probably didn't intend for this malware to get as much attention as it has."

The current economic model for criminal hacking calls for a low and slow approach that does not draw attention to activities. Although estimates of Downadup infections range as high as 10 million devices, the current size of the network of available computers is probably a couple million, and so far they do not appear to have been put to work as a botnet.

"It's a good-sized network," Haley said. But "we may never see a big bang" from it.

The worm's success and the interest it has generated stem from the combination of tools it uses to spread and protect itself, although none of the tools is unique.

"This is the most technically interesting worm we've seen because of the way it spreads, as well as the communication mechanism, its encryption types and the methods it uses to contact its command-and-control servers," said Andrew Storms, director of security operations at nCircle, a network security automation company.

"It's good at what it does, and it looks like there is some thought and organization behind it," Haley said.

The original W32.Downadup.A exploited only the MS08-067 vulnerability in Microsoft Windows XP Service Pack 2 and Windows Server 2003 Service Pack 1 operating systems, for which Microsoft issued a patch outside its regular monthly patching cycle. The more recent B variant added password guessing and the ability to copy itself to USB drives, giving it a wider dissemination throughout a network once it is inside. The authors of the malware appear to be trying to gather networks' low-hanging fruit.

Its high visibility has made Downadup risky for those who plan to use it.

"This is eerily reminiscent of the major worms of five years or more ago," said Chris Schwartzbauer, senior vice president of worldwide sales and marketing at Shavlik Technologies. The high visibility of worms such as Sasser, Blaster and Code Red prompted networks to protect themselves.

Although the latest Downadup variant could have a more secure communication method, the worm already has the ability to communicate peer-to-peer, and there would be no reason to think it is waiting for April 1 for a major command, Haley said.

The advice of most experts is to stay patched and stay calm. Tools are available to detect and remove the worm, and organizations with up-to-date patches should be safe.

"Most enterprises already are using a patch management process and following industry best practices," Storms said. "They are likely already patched and protected from a Conficker infection."


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