Google Dabbles with Display Ads in Gmail

This week Google was caught testing display advertising placements in its email client, Gmail.

Numerous people, like Searchengineland.com, reported seeing display ads on the vertical borders of their Gmail interfaces. Normally you only find text-based ads in your email client.

When queried by reporters, Google simply said, "We're always trying out new ad formats and placements in Gmail, and we recently started experimenting with image ads on messages with heavy image content," the company said in a statement.

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Apparently the tests began last Friday, the spokesman said. And before you cry foul, don't forget rivals Microsoft Hotmail and Yahoo Mail already sell display and banner ads.

Without Gmail, which boasts "hundreds of millions of users," display advertising generates around $2.5 billion a year for Google through AdSense and DoubleClick. A large chunk of this goes to third-party publishers, however.

Windows Phone 7 Apps To Live In The 'Sandbox'

LAS VEGAS–Microsoft's Windows Phone 7 Marketplace is sounding more and more like the iTunes Store. In presentations at the MIX10 conference Monday, execs described "sandboxed" apps, a Marketplace with content- and business-based restrictions, and a hardware spec requiring four-point multitouch and 8 Gbytes of internal storage.

Windows Phone 7 apps will be strictly "sandboxed" with "isolated storage," much like iPhone apps are, Microsoft developer liaison Charlie Kindel said. When they're submitted to the Marketplace – which will be the only way users can purchase Windows Phone apps – they will be reviewed according to not only technical criteria, but also "business" and "content" criteria that Kindel said would be explained later.

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A blog post on Microsoft's Web site makes the content restrictions a little clearer, requiring that apps "do no harm" and "are legal and of generally good taste," with porn, "hateful/inflammatory speech" and "gratuitous violence" excluded.

"Our goal is to deliver to end users thousands of really compelling applications and games," Kindel said.

To that end, Microsoft is offering free developer tools and promises a smooth approval process and options for both carrier and credit-card billing, Kindel said. All apps will have a "try before you buy" option; free apps will also be allowed.

In an earlier presentation today, exec Joe Belfiore explained that Windows Phones will need 8 GB of on-board flash storage, four-point multitouch screens and five-megapixel cameras. Front-facing cameras and QWERTY keyboards will be optional, Kindel said after his presentation. But user-accessible, MicroSD memory card slots are prohibited. The first phones will have 800-by-480 screen resolutions, and later phones will also have 320-by-480 screens, Kindel said. The phones will be able to locate themselves via GPS, Wi-Fi triangulation and assisted GPS.

Apps won't be able to talk to each other, won't be able to access each others' files, and won't be able to access third-party hardware through the USB port.

The restrictions on Windows Phone 7 developers are similar to some of the restrictions on iPhone developers, although Kindel tried to point out major differences. For example, Microsoft wants to make the certification process "very transparent" with "no surprises at the end" – though how that jibes with there being content and "business" restrictions has yet to be seen.

Just like with Apple, Kindel said that some of these restrictions were necessary to ensure a good end-user experience.

"End users, in order for them to buy a lot of apps, it needs to be very friction free and they need to be safe doing it," he said. "They need to know no matter what app I get or game I get it's not going to corrupt my battery life or use all my network."

Kindel expressed a desire to lighten restrictions on developers as time goes on. For instance, multitasking and SQL database access are both on Microsoft's to-do list. Kindel shied away from giving a schedule for future releases of the Windows Phone 7 platform, other than to say Microsoft is working as fast as they can.

"It's so important when end users get these phones they have a delightful experience that's consistent," he said. "We decided to nail [certain experiences] in this constrained way now, and we have the ability to open them up with time."

Viliv's X70 is the Smallest Windows Slate Tablet

The Viliv X70 is the smallest slate tablet to run a full blown version of Windows 7, and it's equipped with the gamut of wireless radios.


CES 2011
LAS VEGAS—if the Asus Eee EP121 is the largest Windows slate tablet, then the Viliv X70 should qualify as the smallest. At CES 2011, the Korean company, Yukyung Technologies and its brand, Viliv, is squeezing Windows 7 into the smallest slate tablet at the show thus far. There have been ones that are as small or smaller running Google's Android operating system, namely the 5-inch Dell Streak and the 7-inch Samsung Galaxy Tab, but no tablet has ventured below the 10-inch space using Windows 7.

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The Viliv X70 weighs less than a pound (0.92 lbs), at least a half a pound lighter than the Apple iPad (1.5 lbs). It opts for a 7-inch widescreen, instead of the 12-inch one found in the Asus EP121 and MSI WindPad, and boasts a 1,024-by-600 resolution, similar to the one found in many 10-inch netbooks. The screen supports capacitive multitouch, but lacks a digitized layer like the Wacom one found in the Asus; so good luck if you want to take advantage of Window 7's handwriting recognition features.
Viliv X70: A 7-inch Windows Tablet

It's equipped with the gamut of wireless radios, including WiFi 802.11n, Bluetooth, 3G HSPA, WiMax, and Verizon's EVDO. Because of its size, your only options for storage are a 32GB or 64GB SSD. There's an HDMI port, micro USB, and micro SD slot (supports up to 32GB). There's a front facing webcam (1.3 Megapixel) and a rear-facing one (3 Megapixel) as well.

As for components, Viliv mentions that the X70 will run one of Intel's next generation processors, but didn't say which one. It did say that 1080p video is supported, which sounds like an Atom processor with a separate HD decoder chip. It comes equipped with 1GB of RAM, upgradeable to 2GB. Though the battery is a mere 21WH in capacity, Viliv claims that battery life can last up to 6.5 hours. The Viliv X70 is available for purchase at www.dynamism.com, for an unspecified price.

Windows 7 Drives Microsoft to Profit, Record Revenue

Windows 7 helped drive Microsoft to record revenue during its fiscal third quarter, with profits increasing by more than a third versus a year ago.

Microsoft reported net income of $4.01 billion on revenue of $14.5 billion, an increase of 35 percent and 6 percent, respectively.

Microsoft said that revenue from its Windows division jumped by 28 percent to $4.42 billion, driven by "strong demand for Windows 7".

More than 10 percent of all Windows PCs are running Windows 7, the company said.

"Our first quarter results reflect our strong product momentum, a... focus on controlling costs, and the beginning stages of the return to business hardware spending," Peter Klein, chief financial officer at Microsoft, said in a conference call with analysts.

Microsoft said that it estimated PC unit growth at between 25 percent and 27 percent, with consumer PC growth estimated at about 30 percent, and business PCs at about 14 percent. Netbooks represented about 10 percent of sales. The OEM units in the Windows business that Microsoft sold, however, outpaced the PC market, growing 30 percent; OEM revenue grew 29 percent.

Microsoft showed growth in its Windows division, Entertainment and Devices and its Server and Tools business, but revenues slipped in its Business division. If $305 million in deferred revenue from the company's Microsoft Office 2010 Technology Guarantee program was factored in, however, the unit would have grown by 1 percent. Microsoft's Online Services division grew slightly.

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Microsoft reported revenue of $3.575 billion in its server business, versus $3.491 billion a year ago; Entertainment revenues also grew from $1.629 billion to $1.665 billion. Online Services revenue grew from $507 million to $566 million, probably on the strength of its Bing online services business. Microsoft's Business division declined from $4.508 billion a year ago to $4.243 billion.

Microsoft sold 1.5 million Xboxes, the company said, a 12 percent dip. That was in line with an "overall market decline," executives said. Non-gaming revenue was up 14 percent.

"Windows 7 continues to be a growth engine, but we also saw strong growth in other areas like Bing search, Xbox LIVE and our emerging cloud services," Klein said in a statement. "Our record third-quarter revenue along with continued rigor on cost management resulted in exceptional EPS growth."

Microsoft's Business Division reported adjusted customer revenue grew by 11 percent, after the Office 2010 deferral. Office 2010 will be generally available in June, with commercial availability in May, executives said.

All of Microsoft's units reported a profit, except for Online Services, which lost $713 million, more than it made in revenue. Here, though, Microsoft officials professed themselves pleased with the results, as Microsoft's Bing search engine grew each month to a U.S. query share of 11.7 percent, as measured by comScore. Online ad revenue grew 19 percent.

Microsoft did not offer guidance for its fiscal fourth quarter, projecting operating expense guidance of $26.1 billion to $26.3 billion for the full year ending June 30.

Microsoft said its Windows division would outperform the market; its Business division will track toward PC shipments in non-annuity sales. Annuity sales will be up in the low single digits, the company said. Microsoft's server and tools sales will be up in the mid-sngel digitas for annuity sales, and in line with non-annuity sales in hardware shipments. Services will up in the low single digits. Online services will be in line for the market, with sales from the Entertainment and Devices division roughly flat for the year.

The current quarter is Microsoft's fiscal fourth quarter, and Microsoft's sales team will be pushing hard to make its end-of-year numbers, Klein said. That sales push will correspond with the launch of Office 2010, Sharepoint 2010, the next iteration of SQL Server, and an "unprecedented wave of innovation" in the Entertainment division that will include Project Natal, Fable 3, Halo:Reach, and Windows Phone 7, all in the next few quarters.

Microsoft Prefers AT&T—Is Verizon Miffed?

Big Blue becomes the "premier partner" for Windows Phone 7 WC (Mobile World Congress)

BARCELONA – Windows Phone 7 will be launching with all four U.S. carriers and several international ones. But AT&T and Orange are "premier partners," according to Microsoft, which means they may get first crack at devices.

Wireless carriers have traditionally liked Microsoft phones. "They can add their own software and services," Microsoft vice president Andy Lees said at the launch. "Mobile operators also have tremendous value to add. They're not just dumb pipes."

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But AT&T and Orange are special. "We'll be particularly deeply engaged with two mobile operators, providing differentiation through unique software and services on their networks," Lees said. He didn't make it precisely clear what advantage AT&T would get over other carriers, but nobody I could find would confirm or deny that AT&T might get the Windows phones first.

For their part, AT&T seems thrilled. "At AT&T we can't wait to get Windows Phone in the market," said David Christopher, the chief marketing officer of AT&T's wireless business.

When I asked all four big U.S. wireless carriers for statements about Windows Phone 7, I got quotes from AT&T, Sprint and T-Mobile – but Verizon Wireless gave no comment. Are they miffed? As I said, they gave no comment. There's no comment in Verizon's or Microsoft's press releases about Windows Phone 7, either, and Verizon is a company that puts out a press release when they erect a new tower in Brooklyn Park, Minn. That sounds like miffed to me. (Watch their denial arrive a few minutes after this story publishes.)

So why is AT&T better than the rest? Ballmer specifically called out Microsoft's partnership with AT&T on U-Verse, which helps unravel the mystery. AT&T's U-Verse is a Microsoft-developed IPTV platform that AT&T is rolling out in their fiber-to-the-home areas. Verizon had a chance to go with Microsoft's solution for their FIOS TV, but they chose to demur.

I doubt anyone at Microsoft would ever admit this, but it sounds to me like Windows Phone 7 is a "gift with purchase" to AT&T for signing up for Microsoft's IPTV platform.

Microsoft's Boyd Questions Future of Online Privacy
AUSTIN, Texas - Microsoft researcher Danah Boyd presented a pretty bleak picture of how privacy and publicity is managed online Sunday in her SXSW Interactive keynote.

Targeting Chatroulette, Facebook, and Google Buzz as examples, Boyd says consumers have no idea what they are sharing online, and that the businesses that build social networks don't either.

Facebook changed its privacy policies in December, requiring each user to sign off on new privacy settings. When offered this choice, 35 percent of users chose to make their profiles private. Boyd pointed out that that means 65 percent made their updates public. After conducting scores of interviews, Boyd doubts those users even read the privacy statement; they just clicked through as we have been conditioned to do.

"I have yet to find a single person who actually knew what their settings were," Boyd said. "When they don't know what the value proposition is, they just click through."

And that can lead to problems. Google Buzz had a difficult launch primarily because users didn't understand the service. By auto-picking user's friends on Buzz, users thought Google was sharing their information without their permission. Worse, users didn't understand how to opt out. "I kept meeting users that thought if they opted out, they would cancel their Gmail accounts," Boyd said.

To be fair, Boyd noted that many of these privacy problems are created by people's desire to gain publicity and get famous. She pointed to Miley Cyrus, who accumulated 2 million followers on Twitter and then deleted her account for privacy reasons. What did she do then?

"She made a rap about quitting Twitter because she wanted privacy, which she then put up on YouTube." Boyd said. "That is celebrity culture."

If Miley Cyrus, with her legion of handlers and advisors, can't effectively manage publicity and privacy, what chance does the average online consumer have? Or worse, a 15-year-old kid with a Facebook page? Not much.

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"Chatroulette may be a fad, but the idea that privacy and publicity is going to get mashed up is not," Boyd said. "Neither privacy nor publicity is dead, but technology will make a mess of both."

This post originally appeared on AppScout.

USDA Moving 120,000 Workers to Microsoft Cloud Services

The U.S. Department of Agriculture is ready to go live with Microsoft's cloud services. In the next four weeks, the agency will move 120,000 users to Microsoft Online services, including e-mail, Web conferencing, document collaboration, and instant messaging.

The USDA said it will be the first cabinet-level agency to move its e-mail and collaboration apps into the cloud. Microsoft will consolidate 21 different messaging and collaboration systems into one. Employees will use Microsoft Exchange Online for messaging and calendaring, SharePoint Online for document collaboration, Office Communications Online for instant messaging, and Office Live Meeting for Web conferencing.

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The software giant will house the USDA's service in a separate, secure facility, where physical access will be limited by biometric access controls. Microsoft recently secured an authorization to operate (ATO) as required by federal security law.

The deal is part of a May 2010 contract USDA awarded to Dell for Microsoft Online Services. USDA said it has worked closely with Microsoft and Dell for the past six months on transition plans.

"USDA's IT modernization will allow us to streamline our operations and help us use taxpayer dollars more efficiently," USDA chief information officer Chris Smith said in a statement. "With a focused cloud roadmap, we saw a clear opportunity to achieve our cost savings and consolidation goals, and tap into the promise of the cloud."

The announcement comes about a week after the U.S. General Services Administration (GSA) announced that it would move its 17,000 employees onto Google's hosted Web apps. The transition, which will affect 17 locations around the world, will be administered next year by Unisys, a Google partner.

Microsoft didn't take the Google-GSA news very well. Thomas Rizzo, senior director of SharePoint at Microsoft, wrote in a blog post that Google cannot meet the requirements of business customers. On Wednesday, Rizzo penned another blog post that said the USDA will "get a world class productivity experience backed by an enterprise class services and support organization that has focused on this business for over 20 years."

"The USDA requires Microsoft to provide offline access which which we do view as a basic not something vendors can expect somewhere down the line," Rizzo wrote, a dig at Google.

In October, Microsoft also inked a licensing deal with the city of New York that will consolidate its various licenses into one and provide city officials with access to Microsoft's cloud-computing features.

UPDATE: Google said Thursday that it was not invited to participate in the bidding process for the USDA contract, suggesting that it might have beaten Microsoft had it been given the chance. "We were not given the opportunity to bid for USDA's business," Google said in a statement. "When there has been a full and open competition- as with the General Services Administration, Wyoming, Colorado and Los Angeles- customers have chosen Google Apps, and taxpayers are saving millions of dollars."

Unboxing the Microsoft Kin, Virtually

Microsoft on Monday unveiled its new Kin social phones. We got a peek at the new devices during a New York press event.

Microsoft's new "Kin" phones come in some very unusual cylindrical boxes. At the launch event, we got to see the boxes that the Kin will come in, as well as the two Kin phones themselves.

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This isn't a true unboxing - the phones weren't inside the retail packaging, and the boxes were missing the power adapters, USB cables, and headsets. But nevertheless, we took apart the packaging and looked at the Kin's unusual manual and where everything would go. Take a look at our slideshow to see the Kin One and Kin Two.

Because It's Loaded With New Multimedia Tools

All those multimedia tools in Windows XP? Child's play. If you're serious about PC audio and video—about watching TV, listening to music, making movies, managing your digital photos, all from your PC—Vista is the place to do it all. For the first time, Microsoft includes a bona fide photo manager—not the skimpy "photo viewer" you'll find in Win XP. In addition, you get beefed-up versions of Windows Media Player and Movie Maker. And with the Premium or Ultimate versions of the OS, you even get an updated version of Media Center, the home entertainment system that used to be a separate operating system.

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The moment I first opened Vista's new Photo Gallery tool, I knew Microsoft had gotten it right. Finally, a single place where we can organize, edit, and share our digital photos. Win XP failed to offer any editing or sharing options, and its organizational tools were almost an insult. Windows Photo Gallery can't quite compete with free photo managers like Picasa (my favorite) and Preclick, or with Apple's iPhoto, but it's still a big step for the OS.

With Photo Gallery, you can organize videos as well as photos, quickly searching and sorting them via tags, dates, and ratings. I love the "slider" button, which lets you instantly resize the thumbnails on your virtual light-table, and the default "Ken Burns" slide-show effect, which dynamically pans and zooms each photo. Windows Media Player 11

And here's a little secret: Photo Gallery actually integrates with the updated Windows Movie Maker, which means you can instantly, easily move photos and videos from one to the other. You can spice your movies up with all sorts of new effects and transitions. Perhaps best of all, now that Movie Maker takes advantage of your graphics processor, it no longer limits movie previews to a tiny 320-by-240 window. And when your movie is finished, you can seamlessly burn it to disc using Microsoft's new DVD Maker tool; you can even add chapters and menus.

Meanwhile, Windows Media Player 11 offers a fresh interface, making it easier to organize, find, rip, and burn your audio files. My favorite perks: You set up songs for burning with a mere drag and drop, and you can add cover art with a simple paste command. I'm into browsing by album cover, too. Media Player is also better at syncing portable devices, certainly a welcome improvement. Check out the "random sync" feature, which can turn any MP3 player into an iPod shuffle. (Whether that's a good thing is still up for debate.) And when Vista finally debuts, Player will work hand in hand with URGE, MTV's new online music service, which will offer more than two million digital tracks. Make no mistake: Vista can excite the senses.

The PC era is not over -- yet

No more PCs! We'll do it all with smartphones and tablets! That's what even InfoWorld's pundits seem to be saying lately. Not so fast -- I have my cranky pants on this morning and the rush to declare a "paradigm" (I hate that word) shift to a post-PC world ruled by mobile devices and cloud services has me chewing my moustache.

Here are just three of the many reasons to take the postulations of my colleague Eric Knorr (don't take it personally, boss) and others with many a grain of salt:

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[ InfoWorld has named the iPad the best PC in its 2011 Technology of the Year Awards. Find out why. | For the key tech news of the day, sign up for InfoWorld's Tech Headlines Wrap-Up newsletter. ]

Privacy: Do you really expect Google to tell some snoopy law-enforcement type that it can't see the stash of email and documents you keep in the cloud because you no longer have local storage? Not to mention the myriads of hackers and crackers out there.

Vendor lock-in: How many of us complained bitterly that we were chained to Microsoft (or Oracle or SAP, in the case of business computing)? Now products like Google's Chromebook would throw us all into the arms of Google for every little thing.

Spectrum shortage: For years, there was a shortage of bandwidth in the wired world. We've largely overcome this hurdle, but think back to those days and the problem. Now that we're all moving to wireless devices, we're running out of spectrum.

Uncle Sam wants your data
In the first six months of 2010, law-enforcement types in the United States made 4,287 requests for information about users or to have certain data removed from the Web. How do I know this? Google posted a transparency report that shows what governments around the world have been asking (or maybe telling) it to do.

The New York Times pointed out earlier this week: "As Internet services -- allowing people to store e-mails, photographs, spreadsheets and an untold number of private documents -- have surged in popularity, they have become tempting targets for law enforcement." The more data you have stored in someone else's hands, the more you run the risk of a third party getting to see it -- legitimately or otherwise.

I realize that the much-heralded Google Chromebook is closer to a concept than a finished product at this point, but more than any other, it encapsulates the technological wishful thinking (some of it rooted in dislike for Microsoft) that has become so fashionable. Yeah, I see the cool factor, but it has very limited local storage and no easy way to run local productivity apps. This one device exemplifies all three of the serious problems with the new paradigm.

The Rest of the Office Gang

There's a lot more to Microsoft Office than Word, Excel, and Outlook. Each program in the suite is available separately, and a few apps are considered part of the Office family but aren't bundled in any edition of Office.

Access 2003
This database program has an improved interface, with a task pane that helps find and correct common errors and reveal object dependencies. Other enhancements include more import/export power and the ability to link tables. (Professional Edition, $229 list.)

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FrontPage 2003
A significant upgrade, this Web site creation and management program adds many new features and controls to previous versions, including Flash support and tools to help you generate JavaScript and XML. ($199.)

PowerPoint 2003
The new PowerPoint includes support for smart tags, workgroup collaboration, and information rights management. Multimedia support lets users easily save PowerPoint 2003 files to a CD and play streaming audio and video within a slide show. ($229.)

Project 2003
Office's project management program employs flexible reporting and analysis to optimize resources and set work priorities. The Professional version is the client side of Microsoft's enterprise project management solution, which includes links to the company's Project Server and Project Web Access. (Standard, $599; Professional, $999.)

Publisher 2003
Microsoft's familiar business publishing program now has enhanced Web support, new design sets, improved commercial printing support, an e-mail wizard that lets you preview publications in various e-mail clients, and a catalog-merge feature. (Professional and Small-Business Editions, $169 each; with Digital Imaging, $209.)

Microsoft Visio 2003
Office's diagramming program, Visio 2003, is updated with several new types of diagrams, as well as the kinds of interface improvements seen across the suite. The Professional version, meant for IT pros, engineers, and developers, adds directory services and network rack diagrams. (Standard, $199; Professional, $499.)

Intel, Dell Offer IT for Retail Stores

Intel is pushing cutting-edge technology at the National Retail Federation show, while Dell and other IT vendors are offering hardware, software and services.

NEW YORK – If you’re a man or woman, young or old, a runner, a soccer player or just a casual sports fan, Intel and Adidas have the perfect pair of shoes for you.

As long as you don’t mind that you’re looking at a pair of virtual shoes. The real ones are probably somewhere in the storeroom.

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This new vision of retail, which combines semiconductor technology, video analytics and old-fashioned brick-and-mortar sales, could be found at the National Retail Federation Convention and Expo, which kicked off Jan. 9 at the Jacob K. Javits Convention Center here.

While the NRF show usually focuses on the latest trends in retail, IT companies had a significant presence this year, which many agreed was a big improvement, compared with last year’s expo, when companies were still recovering from the recession and poor sales. This year, companies such as Microsoft, IBM, Oracle, Motorola, Intel and Hewlett-Packard dominated the showroom floor with big displays to show how technology can make retail more profitable.

One of the more impressive displays on the floor belonged to Intel, which partnered with the likes of Adidas and Kraft Foods to show how technology and commerce can converge within the retail space. First, Intel introduced a version of the company’s "Sandy Bridge" Core processors for embedded devices. These chips combine CPU and graphics technology on a single piece of silicon. Intel introduced these second-generation Core processors at the 2011 Consumer Electronics Show.

"What we want to do is bring the best of online into the brick-and-mortar stores," said Chris O’Malley, director of Intel’s retail marketing, adding that, in addition to chips, Intel is looking to bring technology such as vPro into retail as a way to manage POS (point-of-sale) machines and other equipment.

"If a digital sign crashes, it could sit there for three to four hours before someone tries to get it fixed," O’Malley said. "With something like vPro, the signal is sent, and a sign or a POS machine can be restarted or reimaged."

These Sandy Bridge processors and vPro have been combined with new technology that Intel is developing called anonymous video analytics, which work with large, touch-screen displays that can identify people by their gender and age. Intel had been developing this AIM (Anonymous Impression Metric) platform, when it bought a small Canadian digital-signage company, called CognoVision late last year.

For Kraft, this new technology means a retail display that can not only tell a shopper what is on his or her grocery list; it also can suggest recipes based on both a person’s gender, age and what is on that weekly shopping list. Of course, there is also a social-media component that allows people to share and "like" recipes on Facebook.

While the Kraft display is still proof-of-concept technology, the Adidas display is moving closer to reality. The display, which uses a huge touch-screen to let customers see and get information on thousands of pairs of shoes, is expected to move toward a pilot program later this year. The screen allows the customer to customize the shoes they are looking for by price, size, color and even what sport the footwear is designed for. Once the customer selects a shoe, the information is sent to an employee with a tablet who can retrieve the item from a storeroom.

Adidas is currently working to integrate the customer-facing screen with the company’s back-end infrastructure and CRM (customer-relationship management) software.

For now, touch-screens like those Adidas and Kraft are using are rapidly close to reality. However, Intel is also looking to offer displays with hands-free gesture technology that will allow customers to browse products from several feet away or even outside the store. However, at the Intel booth, a brief, hands-on demonstration using shaving products for men showed that technology in need of vast amounts of improvements before any sort of initial deployment.

If Intel’s display was a "Minority Report," then Dell was more bread-and-butter. At its booth, Dell had all the familiar trappings of the NRF show: POS machines, IP video cameras for security and digital signs.

However, Dell was pushing its wares in two specific directions. The first targeted small and midsized retail stores, which Dell translates into any company with 10 to 100 retail shows, and the second is IT services. For the better part of two years, Dell has pushed its SMB and IT services as the company looks to reinvent itself, and now that same focus is coming to vertical markets, such as retail.

Brian Slaughter, director of end-user solutions for Dell’s Large Enterprise division, believes that the company’s acquisitions, such as Kace Networks and Perot Systems, have helped the PC maker expand its operations. The Kace buy allows Dell to offer device-management capabilities to retail stores. Perot, which did not have a specific retail division, helps Dell integrate software, such as SAP applications, across its retail offerings, said Slaughter.

Then there is mobile technology, a new field to Dell but one that it’s pouring resources into as of late. At this year’s CES, the company announced its latest Streak device running Android 2.2. Slaughter had two Streaks on display with him at the NRF show to demonstrate how consumers are changing their habits and how retail owners need to adjust.

"Consumers bring to retail what they want to do," said Slaughter, as he gestured toward the 7-inch Streak tablet. "In respect to the customers, a lot of times they are ahead of retail people. At the same time, these are the type of devices that employees already have with them personally, and this is what they want to use in the stores. It’s all about having more information readily available."

HP Dominated Q4, but Ranks of Acer, Dell, Toshiba Disputed

Gartner and IDC agreed in Jan. 12 reports that fourth-quarter 2010 PC sales were sluggish. On how Acer, Dell and Toshiba ranked, however, they disagree.

Hewlett-Packard, Dell, Acer and Toshiba dominated worldwide PC shipments during last year’s fourth quarter, according to Jan. 12 reports from IDC and Gartner. While both research firms reported that sales were sluggish during the quarter, rising approximately 3 percent from the same quarter a year ago, they differed in how they ranked the Top 5 vendors.

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Although HP’s fourth-quarter unit shipment growth was below the worldwide average and down 1.2 percent from a year ago (by Gartner’s estimate), the company was again the undisputed world leader. It was also the first-place finisher in the United States, with unit shipments of 5.7 million by IDC’s count and 5.6 million by Gartner’s.

However, Gartner ranked Acer No. 2 worldwide, with shipments of 11.9 million units, down from 12.1 million a year earlier. Dell followed with shipments of 10.8 million units, up from 10.4 million.

In contrast, IDC gave second place to Dell, finding it to have shipped 11.1 million units during the quarter, to Acer’s 9.8 million.

Both firms gave the fourth-place worldwide ranking to Lenovo, followed by Toshiba, though they differed again in their rankings for overall U.S. sales. While both research firms placed HP and Dell in the No. 1 and No. 2 U.S. spots, respectively, Gartner reported that Acer placed third, while IDC gave that ranking to Toshiba, pushing Acer to fourth place.

By both accounts, Apple and Toshiba were the only vendors in the Top 5 to increase their U.S. shipments during the quarter.

Vendors saw some success during the quarter from corporate refreshes. However, consumer PC purchasing was down, as consumers are “spending less than they used to,” stated IDC. In addition, the vendors had to compete with tablet PC suppliers for those dollars.

“Media tablets undoubtedly intensified the competition in the consumer market,” wrote Gartner’s Mikako Kitagawa. “These devices do not replace primary PCs, but they are viewed as good enough devices for those who want to have a second and third connected device for content-consumption usage. Mini-notebook shipments were hit the most by the success of media tablets.”

IDC analyst Jay Chou added, “Consumer fatigue is playing an important role in many markets as the mini-notebook surge wanes, and consumers watch their spending and evaluate other products.”

Such products include the Apple iPad and Samsung Galaxy Tab, as well as the wealth of tablet competitors aggressively working to chip away at Apple’s enormous market share.

In 2011, the competition for consumer dollars “is likely to persist … if not get worse, as a wave of media tablets could put a dent on the traditional PC market,” IDC Research Director David Daoud said in the firm’s report.

IDC estimates that worldwide PC shipments in 2010 rose to 346 million units, up nearly 14 percent from 2009 totals, while Gartner put the figure at a slightly more optimistic 350.9 million units.

The two firms disagreed again on how to shuffle the Top 5. IDC found Dell in the No. 2 spot, with shipments of 43.4 million units, compared with Acer’s 42.4 million. Meanwhile, Gartner put Acer in second place, with shipments of 45.2 million units, in contrast to Dell’s 42.1 million.

The agreed-upon, notable standout for the year, however, was fourth-placing Lenovo, which by both estimates posted annual revenue growth of 37.3 percent.

“Lenovo’s shipment growth well exceeded the worldwide average,” stated the Gartner report. “Lenovo’s growth was driven by strong professional growth, as well as expansion into the consumer space outside of China.”

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Get up to speed on Microsoft's August security bulletins and latest security advisory

Microsoft has published a new security advisory about a COM object vulnerability that could pose a critical threat. In addition, the software vendor released six security bulletins for August, three of which are critical. The remaining three bulletins, however, still pose a threat if you're running affected systems.
Details

On August 18, Microsoft published Security Advisory 906267: "A COM Object (Msdds.dll) Could Cause Internet Explorer to Unexpectedly Exit," about which the company's security team has recently received reports. Microsoft Knowledge Base article 906267 addresses this threat (CAN-2005-2127). According to silicon.com, some online sources are reporting exploit code is available and potentially circulating around the hacker nets.

The security advisory is an early notification step. Although it includes possible workarounds, Microsoft says it's still investigating the possible threat and that the company has no knowledge of any attacks based on this potential vulnerability.
Applicability

This vulnerability could apply to all Internet Explorer versions after 5.01 on most or all operating platforms. Although the bulletin includes some specific versions, keep in mind that it's a preliminary report.
Risk level – Critical

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The vulnerability could pose a denial of service threat. The security advisory includes a statement about the potential for an attacker exploiting it to run arbitrary code, which would raise the threat rating to critical.
Mitigating factors

Msdds.dll doesn't ship with Windows by default. If you don't have the DLL on your system, you aren't at any risk from this threat. In addition, users would have to open a malicious Web site to initiate the attack. However, the necessary code to modify a Web site is apparently already available on the Web.
Fix

Microsoft is still investigating the threat and plans to include a fix in an upcoming security bulletin. In the meantime, the software giant has published workarounds to protect against this vulnerability. In IE, set security zones to High and configure the browser to prompt users before running a new ActiveX control. In addition, disable or unregister Msdss.dll on systems.

Meanwhile, let's get back to our coverage of Microsoft's August security bulletins. Last time, I ran through the three critical bulletins. Now, let's get up to speed on the three remaining threats.
MS05-040

Microsoft Security Bulletin MS05-040, "Vulnerability in Telephony Service Could Allow Remote Code Execution" is a newly discovered threat that someone privately reported to the vendor (CAN-2005-0058). Microsoft updated this bulletin to version 1.1 on August 17 to include information about Windows 98, Windows SE, and Windows ME. I haven't seen any examples of exploits in the wild.

Applicability

* Windows 2000 Service Pack 4
* All versions of Windows XP (including SP2 and 64-bit editions)
* All versions of Windows Server 2003 (including Itanium editions)
* Windows 98
* Windows SE
* Windows ME

Risk level
Microsoft has rated this threat as important for Windows 2000 SP4, all versions of Windows XP, and all versions of Windows Server 2003. It has rated it as a not critical threat for Windows 98, Windows SE, and Windows ME.

Mitigating factors
The telephony service isn't a particularly common tool to enable, so many systems won't be vulnerable. In addition, firewall best practices should mitigate the threat.

Fix
Apply the update. As workarounds, disable telephony services in Control Panel, block UDP ports 135, 137, 138, and 445, and block TCP ports 135, 139, 445, and 593. In addition, block unsolicited inbound traffic on all ports above 1024.
MS05-041

Microsoft Security Bulletin MS05-041, "Vulnerability in Remote Desktop Protocol Could Allow Denial of Service" is a newly discovered threat that someone privately reported to the vendor (CAN-2005-1218). No exploits have yet surfaced in the wild.

Applicability

* Windows 2000 Server SP4
* All versions of Windows XP (including SP2 and 64-bit editions)
* All versions of Windows Server 2003 (including Itanium editions)

This vulnerability doesn't affect Windows 2000 Professional SP4, Windows 98, Windows SE, or Windows ME.

Risk level
Microsoft has rated this vulnerability as a moderate threat for all affected systems.

Mitigating factors
None of the affected Windows versions enable RDP by default. In addition, using firewall best practices should prevent any attack on systems that have RDP enabled.

Fix
Apply the update. Suggested workarounds include blocking TCP port 3389 at the enterprise firewall and disabling Terminal Services, Remote Desktop, and Remote Assistance.
MS05-042

Microsoft Security Bulletin MS05-042, "Vulnerabilities in Kerberos Could Allow Denial of Service, Information Disclosure, and Spoofing," includes two threats: a PKINIT vulnerability (CAN-2005-1982) and the Kerberos threat (CAN-2005-1981). Both are newly discovered threats that researchers privately reported to the vendor.

Applicability

* Windows 2000 Service Pack 4
* All versions of Windows XP (including SP2 and 64-bit editions)
* All versions of Windows Server 2003 (including Itanium editions)

This threat doesn't affect Windows 98, Windows SE, or Windows ME.

Risk level
Microsoft has rated this as a low threat for Windows 2000 Professional and Windows XP systems. It is a moderate threat for Windows 2000 Server and Windows Server 2003 systems.

Mitigating factors
Valid logon credentials are required to exploit either component vulnerability.

Fix
Apply the update. Understand that this patch could affect some functionality. For more information, read the entire security bulletin.

As a workaround for the Kerberos threat, block both TCP and UDP ports 88 at the firewall. No known workarounds are available for the PKINIT threat.
Final word

Of course, the big news in the past week was how quickly the mainstream media jumped on the Zotob family of malware, which targeted a vulnerability in Windows 2000 that Microsoft patched earlier this month. All of the reports that I've seen indicate that this is a relatively minor threat. However, since several high-profile media outlets fell victim to this worm, it is big news—at least to them.

Symantec doesn't list any Zotob version as being worse than a grade 3 threat. (Grade 5 is the maximum threat level.) In addition, only Zotob.E reached that level; the other variants were only grade1 or 2. Nevertheless, this is a real threat to anyone who's running an unpatched Windows 2000 system. For more information, check out these TechRepublic resources:

* "New worms prevention and cure"
* "Microsoft offers Zotob removal tool"
* TechRepublic Real World Guide: Virus Prevention and Recovery (download)
* Virus Protection Policy (download)

I'm not making light of this threat—only the way the media jumped on this while ignoring Esbot.A, which is certainly as dangerous and also targets the PnP vulnerability patched in MS05-039. The most important thing to remember is that any vulnerability that affects your system is a critical threat—even if yours is the only one compromised.

Lock IT Down: Check out new Microsoft security bulletins, including critical flaw in PPTP

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With more companies using the Internet as a backbone for building a virtual private network, any security holes in the underlying VPN software can be a major threat to vital services and to the network itself. A new Microsoft Security Bulletin, MS02-063, describes and addresses a flaw in PPTP, the most popular VPN protocol used in Windows networks.

Another recently patched flaw (MS02-064) allows a Trojan horse attack on Windows 2000-based systems, and a third new security bulletin (MS02-062) addresses a number of problems with Microsoft’s Internet Information Server (IIS).

Details
MS02-063: PPTP, the Point-to-Point Tunneling Protocol, is vital to many virtual private network configurations, and the buffer overflow vulnerability can make both clients and servers unusable during an attack. To exploit it, an attacker can send specially malformed control data that won't be processed correctly. Targeted servers will then lock out users by preventing them from initiating VPN sessions. Targeting clients will cause the client system to crash. Either can be restored by simply restarting the system, but a crashed client system will lose current unsaved data.

MS02-064: A Windows permissions flaw opens Windows 2000 installations to a Trojan horse attack. This is a two-stage vulnerability. The first part, as described in the FAQ portion of the Microsoft Security Bulletin, is due to the loose default permission (Everyone Full Access) set for the system root folder (usually C:\). The second part involves planting malicious code in the root folder and later getting someone to execute the program while the system root folder is set as the “current folder.” This is something that happens fairly rarely, such as during startup or when issuing [Ctrl][Alt][Del] and then starting the Task Manager.

MS02-062: The third recent MS Security Bulletin includes a cumulative patch for the Internet Information Server (IIS Web server) that includes fixes for these four vulnerabilities:

* The first is an elevated privilege threat, in which an attacker can upload and run arbitrary code with SYSTEM level privileges.
* The second relates to the way IIS allocates memory to WebDAV requests. A specially crafted request sent to IIS 5.0 or IIS 5.1 may consume so much memory that it triggers a denial of service (DoS) event.
* The third relates only to IIS 5.0 and may allow an attacker to upload and execute arbitrary code.
* The fourth is a cross-site scripting threat that will allow malicious HTML code to execute.


Applicability
PPTP issue—Windows 2000 and Windows XP are affected.

Windows permissions flaw—All varieties of Windows 2000 are affected, but shared workstations are especially vulnerable. This isn’t generally a threat to Windows XP systems. However, since all folders get the same loose permissions in NT4, this is a widely known threat for that OS, which most administrators are already aware of and are coping with.

IIS vulnerabilities—IIS 4.0, IIS 5.0, and IIS 5.1 (both 32- and 64-bit versions) are listed in the Microsoft Bulletin as being susceptible to these new flaws. The Symantec Bulletin describing this vulnerability has a more detailed list of affected platforms including, among others, Cisco Call Manager and Windows XP Home Edition. Some of the threats apply to only one or two versions of IIS, but the bulletin covers a number of threats.

Risk level--highest level is critical
PPTP issue—This vulnerability can result in a DoS attack and is rated critical by Microsoft, in part because PPTP is normally used only for vital business systems. The company states that it is not aware of any way this flaw could result in system compromise beyond the DoS event.

Windows permissions flaw—Microsoft rates this as a moderate threat.

IIS vulnerabilities—Microsoft rates the risk of these IIS flaws as moderate, but Symantec rates the risk as high.

Mitigating factors
PPTP issue—A firewall is no protection for a PPTP-enabled VPN. Port 1723 must be open for the VPN to work, so that is not a mitigating factor.

Windows permissions flaw—No mitigating factors are listed.

IIS vulnerabilities—Microsoft lists various mitigating factors for the different vulnerabilities, most of which boil down to the fact that if the server manager follows good security practices, most of the threats will not be a problem.

Fix
PPTP issue—Three patches are available to address the PPTP flaw: one for Windows 2000 and one each for the 32-bit and 64-bit XP installations. Since there may be updates and location changes, you should go to MS02-063 for the links.

Windows permissions flaw—Changing the permissions of the root folder is the best fix. This requires an administrative procedure rather than a patch. You need to reset the default permissions for various folders. An explanation of this, along with a security template, appears in the FAQ section of MS02-064. For a manual fix, Microsoft recommends applying the default permissions that are normally set for XP: Administrators: Full (This Folder, Subfolders, And Files), Creators Owners: Full (Subfolders And Files), System: Full (This Folder, Subfolders, And Files), Everyone: Read And Execute (This Folder Only).

IIS vulnerabilities—Apply patches as described in MS02-062. This bulletin supersedes MS02-018 and MS02-28. Symantec suggests that you “disallow anonymous access to services” and “do not allow unknown or untrusted individuals to upload files onto critical or sensitive systems.” It also offers these recommendations:

* Block unnecessary external access at the network boundary.
* Restrict access to trusted hosts and networks where practical.
* Don’t follow strange links.
* Remove any sample files and directories.

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Microsoft offers small or no information about the format, time necessary, & minimum passing score. At the time of writing, there's no reports of adaptive testing or simulations in this exam, but this can adapt without notice. The most common exam types are described as follows: On a standard-format exam, you can expect between 50 & 60 questions in about 90 minutes. The exam is computer based with multiple-choice questions (both single & multiple answer). you are given the result, either pass or fail, immediately on completion. Passing marks & scores are not revealed.

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About this Exam
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Candidates should be able to install, deploy, and upgrade to Windows 7, including ensuring hardware and software compatibility. Additionally, candidates should be able to configure pre-installation and post-installation system settings, Windows security features, network connectivity applications included with Windows 7, and mobile computing. Candidates should also be able to maintain systems, including monitoring for and resolving performance and reliability issues. Candidates should have a basic understanding of Windows PowerShell syntax.

Credit Toward Certification
When you pass 70-680 Exam: TS: Windows 7, Configuring, you complete the requirements for the following certification(s): MCTS: Windows 7, Configuration Exam 70-680: TS: Windows 7, Configuring: counts as credit toward the following certification(s):

MCITP: Enterprise Administrator
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