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Cloud Analytics Growth Rate Will Continue

February 20, 2015 by  
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It’s no secret that cloud computing and data analytics are both rapidly expanding areas within information technology. Put them together, and you get a winning combination that’s expected to grow by more than 26 percent annually over the next five years.

That’s according to market-tracking firm Research and Markets, which recently released a new report on the global cloud analytics market.

Increased adoption of data analytics is one of the major drivers in this market, Research and Markets found. More specifically, many organizations are adopting data analytics in order to better understand consumption patterns, customer acquisition and various other factors believed to increase revenue, cut costs and boost customer loyalty.

HP, IBM, Microsoft, Oracle and SAP are among the dominant vendors in this arena, the company said in a press release.

Big Data is one of the particularly significant trends in the market, Research and Markets said.

“Cloud analytics deals with the management of unorganized data, which helps organizations access important data and make timely decisions regarding their business,” the company said.

The rates of growth in this arena might actually be much higher than those suggested by the report, said analyst Ray Wang, founder of Constellation Research.

In fact, Constellation Research predicts an annual growth rate of closer to 46 percent until 2020, he said.

Early-arriving cloud companies like Salesforce “had great reporting, but they didn’t necessarily have great analytics,” Wang said.

It’s for that reason that challengers such as Actuate have popped up, he noted.

“More and more, because of the size and complication, we’re seeing analytics move to the cloud,” Wang said.

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Anthem Gets Hacked

February 17, 2015 by  
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Health insurer Anthem Inc, which has nearly 40 million U.S. customers, has confirmed that hackers had breached one of its IT systems and stolen personal information relating to current and former consumers and employees.

The No. 2 health insurer in the United States said the breach did not appear to involve medical information or financial details such as credit card or bank account numbers.

The information accessed during the “very sophisticated attack” did include names, birthdays, social security numbers, street addresses, email addresses and employment information, including income data, the company said.

Anthem said that it immediately made every effort to close the security vulnerability and reported the attack to the FBI. Cybersecurity firm FireEye Inc FEYE. said it had been hired to help Anthem investigate the attack.

The company did not say how many customers and staff were affected, but the Wall Street Journal earlier reported it was suspected that records of tens of millions of people had been taken, which would likely make it the largest data breach involving a U.S. health insurer.

Anthem had 37.5 million medical members as of the end of December.

“This attack is another reminder of the persistent threats we face, and the need for Congress to take aggressive action to remove legal barriers for sharing cyber threat information,” U.S. Rep. Michael McCaul, a Republican from Texas and chairman of the Committee on Homeland Security, said in a statement late Wednesday.

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Office 365 Goes Video Streaming

December 3, 2014 by  
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Microsoft unveiled Office 365 Video, a YouTube-like streaming service where enterprises and large organizations can post in-house video content for communication and training.

“Office 365 Video provides organizations with a secure, company-wide destination for posting, sharing and discovering video content,” said Mark Kashman, a senior product manager with the Office 365 team, in a blog posting.

Kashman touted Video as a tool for internal communications, citing the examples of new-employee orientation, management messaging and worker training. Employees will also be able to contribute to a “Community” section, though most companies will probably frown on cat antic clips.

The service rolls out over the next few days to companies that have registered for Office 365′s First Release early distribution program, then through early 2015 to others.

Video will be available only to subscribers of Office 365′s plans for enterprises — E1 through E4 — and universities (A2 through A4). It will not be offered to consumer subscribers or firms with small business-oriented plans like Business Essentials, Business and Business Premium.

Kashman also said Office 365 plans for government agencies will get Video at some point, but he did not proffer a timeline.

The other requirement is SharePoint Online, an off-premises component of the enterprise and academic plans, but missing from the increasingly popular Office 365 ProPlus, the rent-not-buy plan used by organizations that have decided to retain their back-end services, like SharePoint and Exchange, on premises.

Although Office 365 Video has elements of consumer streaming services like Google’s YouTube, it’s strictly an in-house affair: It will be available only to employees, and then only those whom IT administrators have assigned access rights.

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Oracle And SAP Settle Piracy Dispute

November 24, 2014 by  
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Oracle has won a limited victory in its long-running lawsuit with rival SAP.

The action was taken in reference to events dating back to 2007, which saw employees of SAP’s TomorrowNow unit accused of illegally downloading Oracle software.

German company TomorrowNow was bought by SAP as a means to undercut Oracle’s internal tech support rates, with the ambition of getting customers to migrate to SAP solutions, reports Reuters.

In 2006, TomorrowNow started the process of undermining its parent’s position, offering cut-price support to users of the Siebel database and CRM.

Oracle was originally awarded $1.3bn back in 2010, but this was adjusted downwards on multiple appeals.

SAP acknowledged that its employees had been in the wrong, but disputed the damages awarded. SAP offered a $306m payment in 2012, but did so more in hope than expectation given its admissions.

Earlier in the year, a federal judge gave Oracle the option to settle for $356.7m or force a retrial, and the company has now decided on the former with a further $2.5m in interest.

“We are thrilled about this landmark recovery and extremely gratified that our efforts to protect innovation and our shareholders’ interests are duly rewarded,” said Oracle’s general counsel Dorian Daley.

“This sends a strong message to those who would prefer to cheat than compete fairly and legally.”

SAP agreed: “We are also pleased that, overall, the courts hearing this case ultimately accepted SAP’s arguments to limit Oracle’s excessive damages claims and that Oracle has finally chosen to end this matter.”

SAP announced a partnership with IBM last month to bring its HANA service to enterprise cloud users.

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New Data Suggest IT Hiring Increasing

November 21, 2014 by  
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Whenever IT hiring increases, as it did last month, the default explanation from analysts is this: The economy is improving.

That might be true, and it may well explain the U.S. Department of Labor’s report today that showed the U.S., overall, added 214,000 jobs last month.

Of that total employment gain, IT hiring grew by 7,800 jobs in October, compared with a gain of 6,900 jobs in September, according to TechServe Alliance, an IT industry group.

Another IT labor analyst group, Janco Associates, calculated last month’s IT gains at 9,500 jobs.

Government data can be reported in different ways, depending on which job categories are included in the IT job estimates, and it is why analysts report job numbers differently.

Hiring trends are also affected by Labor Department adjustments, and the government’s adjusted data adds nearly 25,000 telecom jobs over the past two months, according to Janco. Because of this adjustment, Janco termed the recent growth in IT over the past several months “explosive,” while TechServe put last month’s results as “modestly stronger.”

There is no one reason for October’s gain. An improving economy may be at the heart of any answer. Independent of the government numbers, Computer Economics, in a recent report on contingent versus full-time hiring, said it is seeing a drop in the use of contract workers at large companies and more reliance on full-time workers, which is a sign of an improving economy.

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IBM And Tencent Team Up

November 11, 2014 by  
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Tencent Holdings Ltd announced that it would be teaming up with International Business Machines Corp (IBM) on a new cloud software business for corporate customers, a marked departure for one of the dominant forces in China’s consumer Internet industry.

Best known for its popular WeChat messaging app and its online games rather than business software, Tencent said its cloud unit would now target small and medium enterprises in the healthcare and “smart city” industries.

Many technology firms are jockeying for a slice of China’s enterprise software market, which promises to grow sharply in coming years as businesses modernize their IT operations and move data onto the cloud.

Tencent’s alliance with IBM, which has deep experience providing computing and consulting services to corporate clients, provides the Shenzhen company a competitive answer to its Chinese rival Alibaba Group Holding Ltd’s nascent cloud efforts.

An e-commerce giant, Alibaba has been slowly building its cloud unit, which recorded just $38 million in revenue in the three months ended June 30.

Tencent said it would tap IBM for its “industry expertise and enterprise reach” but did not disclose financial terms of the deal.

For IBM, the Tencent deal is just the latest in a recent spate of new software partnerships in China, where its hardware sales have been sliding.

IBM announced a deal earlier this year to install its cutting-edge DB2 database software on Chinese rival Inspur International Ltd’s machines. Big Blue also agreed to license its database and big data technology to Chinese software vendor Yonyou Software Co Ltd.

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HP’s Helion Goes Commercial

November 6, 2014 by  
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HP has announced general availability of its Helion OpenStack cloud platform and Helion Development Platform based on Cloud Foundry.

The Helion portfolio was announced by HP earlier this year, when the firm disclosed that it was backing the OpenStack project as the foundation piece for its cloud strategy.

At the time, HP issued the HP Helion OpenStack Community edition for pilot deployments, and promised a full commercial release to follow, along with a developer platform based on the Cloud Foundry code.

HP revealed today that the commercial release of HP Helion OpenStack is now available as a fully supported product for customers looking to build their own on-premise infrastructure-as-a-service cloud, along with the HP Helion Development platform-as-a-service designed to run on top of it.

“We’ve now gone GA [general availability] on our first full commercial OpenStack product and actually started shipping it a couple of weeks ago, so we’re now open for business and we already have a number of customers that are using it for proof of concept,” HP’s CloudSystem director for EMEA, Paul Morgan said.

Like other OpenStack vendors, HP is offering more than just the bare OpenStack code. Its distribution is underpinned by a hardened version of HP Linux, and is integrated with other HP infrastructure and management tools, Morgan said.

“We’ve put in a ton of HP value add, so there’s a common look and feel across the different management layers, and we are supporting other elements of our cloud infrastructure software today, things like HP OneView, things like our Cloud Service Automation in CloudSystem,” he added.

The commercial Helion build has also been updated to include Juno, the latest version of the OpenStack framework released last week.

Likewise, the HP Helion Development Platform takes the open source Cloud Foundry platform and integrates it with HP’s OpenStack release to provide an environment for developers to build and deploy cloud-based applications and services.

HP also announced an optimised reference model for building a scalable object storage platform based on its OpenStack release.

HP Helion Content Depot is essentially a blueprint to allow organisations or service providers to put together a highly available, secure storage solution using HP ProLiant servers and HP Networking hardware, with access to storage provided via the standard OpenStack Swift application programming interfaces.

Morgan said that the most interest in this solution is likely to come from service providers looking to offer a cloud-based storage service, although enterprise customers may also deploy it internally.

“It’s completely customisable, so you might start off with half a petabyte, with the need to scale to maybe 2PB per year, and it is a certified and fully tested solution that takes all of the guesswork out of setting up this type of service,” he said.

Content Depot joins the recently announced HP Helion Continuity Services as one of the growing number of solutions that the firm aims to offer around its Helion platform, he explained. These will include point solutions aimed at solving specific customer needs.

The firm also last month started up its HP Helion OpenStack Professional Services division to help customers with consulting and deployment services to implement an OpenStack-based private cloud.

Pricing for HP Helion OpenStack comes in at $1,200 per server with 9×5 support for one year. Pricing for 24×7 support will be $2,200 per server per year.

“We see that is very competitively priced compared with what else is already out there,” Morgan said.

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UPS Breached

September 3, 2014 by  
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Credit and debit card information belonging to customers made purchases at 51 UPS Store Inc. locations in 24 states this year may have been illegally accessed as the result of an intrusion into the company’s networks.

In a statement on Wednesday, UPS said it was recently notified by law enforcement officials about a “broad-based malware intrusion” of its systems.

A subsequent investigation by an IT security firm showed that attackers had installed previously unknown malware on systems in more than four-dozen stores to gain access to cardholder data. The affected stores represent about 1% of the 4,470 UPS Store locations around the country.

The intrusion may have exposed data on transactions conducted at the stores between Jan. 20 and Aug. 11, 2014. “For most locations, the period of exposure to this malware began after March 26, 2014,” UPS said in a statement.

In addition to payment card information, the hackers also appear to have gained access to customer names, as well as postal and email addresses.

Each of the affected locations is individually owned and runs private networks that are not connected to other stores, UPS added. The company provided alist of affected locations.

The breach is the third significant one to be disclosed in the past week. Last Thursday, grocery store chain Supervalu announced it had suffered a malicious intrusion that exposed account data belonging to customers who had shopped at about 180 of the company’s stores in about a dozen states. The breach also affected customers from several other major grocery store chains for which Supervalu provides IT services.

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OpenSSL Gets Updated

August 20, 2014 by  
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OPENSSL, the web security layer at the center of the Heartbleed vulnerability, has been issued with a further nine critical patches.

While none are as serious as Heartbleed, patching is recommended for all users according to an advisory released today. The vulnerabilities stem from various security research teams around the web including Google, Logmein and Codenomicom, based on their reports during June and July of this year.

Among the more interesting fixes involves a flaw in the ClientHello message process. If a ClientHello message is badly fragmented, it is vulnerable to a man-in-the-middle attack which could be used to force the server to downgrade itself to the TLS 1.0 protocol, a fifteen year old and therefore pre-Heartbleed patch variant.

Other reports include memory leaks caused by denial of service attacks (DoS) and conversely, crashes caused by an attempt to free up the same portions of memory twice.

OpenSSL now has two full time coders as a result of investment by a consortium of Internet industry companies to form the Core Infrastructure Initiative, a not-for-profit group administered by the Linux Foundation. The Initiative was set up in the wake of Heartbleed, as the industry vowed to ensure such a large hole would never be left unplugged again.

While OpenSSL is used by a large number of encrypted sites, there are a number of forks of the project including LibreSSL and the recently launched Google BoringSSL.

Google recently announced that it would be lowering the page rankings of unencrypted pages in its search results as an added security measure.

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Insurers Eyeing Cyber Coverage

July 25, 2014 by  
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Insurers are eagerly monitoring exponential growth in the tiny cyber coverage market but their lack of experience and skills handling hackers and data breaches may keep their ambitions in check.

High profile cases of hackers seizing sensitive customer data from companies, such as U.S. retailer Target Corp or e-commerce company eBay Inc, have executives checking their insurance policies.

Increasingly, corporate risk managers are seeing insurance against cyber crime as necessary budget spending rather than just nice to have.

The insurance broking arm of Marsh & McLennan Companies estimates the U.S cyber insurance market was worth $1 billion last year in gross written premiums and could reach as much as $2 billion this year. The European market is currently a fraction of that, at around $150 million, but is growing by 50 to 100 percent annually, according to Marsh.

Those numbers represent a sliver of the overall insurance market, which is growing at a far more sluggish rate. Premiums are set to grow only 2.8 percent this year in inflation-adjusted terms, according to Munich Re, the world’s biggest reinsurer.

The European cyber coverage market could get a big boost from draft EU data protection rules in the works that would force companies to disclose breaches of customer data to them.

“Companies have become aware that the risk of being hacked is unavoidable,” said Andreas Schlayer, responsible for cyber risk insurance at Munich Re. “People are now more aware that hackers can attack and do great damage to central infrastructure, for example in the energy sector.”

Insurers, which have more experience handling risks like hurricanes and fires, are now rushing to gain expertise in cyber technology.

“It is a difficult risk to price by traditional insurance methods as there currently is not statistically significant actuarial data available,” said Robert Parisi, head of cyber products at insurance brokers Marsh.

Andrew Braunbergon, research director at U.S. cybersecurity advisory company NSS Labs, said that some energy companies have trouble persuading insurers to provide them with cyber coverage as the industry is vulnerable to hacking attacks that could trigger disasters like an explosion in a worst-case scenario.

Pricing on policies for retailers has climbed in the wake of recent high-profile breaches at Target, Neiman Marcus, and other merchants, he added.

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