| This week's sponsor is CA Technologies. |  | Webinar: Rethinking Enterprise Mobility Management – Beyond BYOD Thursday, May 29th, 12pm ET / 9am PT Our panel of experts will help you understand how to develop effective strategies that accelerate mobility transformation and prepare your organization for the mobile future. Register Today! | Editor's Corner: Congress didn't mean to empower the FCC, says commissioner Also Noted: RAMP Spotlight On... Really big, big data: Government transparency at two bucks per page Privacy not dead, says Facebook; Interesting stuff is dead, says Time; and much more... Follow @fierceentcomm on Twitter News From the Fierce Network: 1. 3 alternatives to hosting an IT career fair 2. Digital marketing growing at double-digit pace 3. Security tops enterprise mobility worries | This week's sponsor is Mashery. |  | Delight & Engage Customer with Mobile APIs Read this success story and learn how a robust API and secure API Management powered Keep's iOS app to become one of the most popular apps in the Lifestyle category in the iTunes App Store. Read now! | |  Congress didn't mean to empower the FCC, says commissioner From time to time, I receive communiqués from other planets, and not just in my spam filter. Unsurprisingly, this one came from a publication that ostensibly covers Congress, which recently has spent more time there than on Earth. But this one comes from FCC Commissioner Michael O'Rielly. In an op-ed for The Hill, Comm. O'Rielly reports that, from his alternate universe, "Congress never intended to give the FCC that authority" to regulate the Internet, under Section 706 of the Telecommunications Act of 1996. Never? It's an astounding claim, given that the only reason the FCC came to believe it does have that authority is because Congress failed to distinguish in unquestionable legal terms which Internet services qualify as communications services, and which were information services, under the '96 Telecom Act. When Congress punted--specifically, when it failed to even bring up a floor debate on a net neutrality bill in 2007--the FCC began an unusual hair-splitting effort proposing to regulate the Internet when it "behaved" like a telecommunications service, and leaving it open otherwise. The FCC later abandoned that effort, in favor of an "Open Internet Order" adopting a revised form of net neutrality principles first put forth by previous chairman Michael Powell. While the D.C. Appeals Court's decision in Verizon v. FCC (.pdf) made clear that the FCC under Chairman Julius Genachowski scrambled to find justification for the authority to regulate the Internet in any regard whatsoever, it certainly didn't happen in defiance of Congress. Dissenting from the point of view of current FCC Chairman Tom Wheeler, Comm. O'Rielly wrote: "Although, the D.C. Circuit vacated most of those restrictions in January, the decision explicitly sanctioned Section 706 as an independent grant of regulatory authority. As a result, we now live in a world where the FCC can arguably adopt almost any rule that conceivably promotes broadband deployment. As Judge Laurence Silberman summarized in his dissent: "'Presto, we have a new statute granting the FCC virtually unlimited power to regulate the Internet.'" This depends on your perception of "unlimited." If a high school principal didn't show up for work for several months, the perception could arise that vice principals would have "unlimited power" to roam the hallways and impose punishment regimes. Of course, that perception would only be promulgated if disorder erupted as a result. There's no question--or at least there shouldn't be, in this universe--that with respect to net neutrality, Congress has been AWOL since 2007. In fact, a bill introduced in Congress last February (.pdf) called the Open Internet Preservation Act (preserving the Internet the way a deep freezer preserves vegetables) would literally make the act of punting its lawmaking authority explicit. The bill essentially says that, insofar as it wasn't clear that the FCC had authority to do whatever it does, well, it does, and we're fine with it, whatever it is. Such a bill, if it had been passed would have conceivably given the FCC the authority to regulate the Internet on whatever terms it so chooses at the time. That's the danger Judge Silberman foresaw--a danger arising from Congress' abject impotence with respect to taking a stand on any subject that does not have clear and immediate political benefits for the party in the majority. In his response to Comm. O'Rielly's op-ed in Disqus, veteran telecom researcher and analyst Michael Elling (a frequent commenter on FierceEnterpriseCommunications) pointed out that it needs to adopt some kind of conceptual framework for what it is it thinks it's regulating, before it adopts or amends some kind of regulatory order for "opening" it up: "The FCC needs clarity in terminology and an objective, data-driven framework to fashion policy if the U.S. is to embrace and lead a robust future of information services. Only then will it also realize that blueprints exist for policies that have worked (for new entrants and incumbents alike) at least 5 times over the past 30 years for IXC/voice, data, wireless, cable and smartphone. Why not simply use these blueprints?" In my opinion, the issue is not whether the FCC should lack the statutory authority to regulate telecommunications services--even if they're common carriers, and even if they use IP. The issue is the lack of statute for the FCC to stand on, which the Congress of 1996 certainly did intend to establish, a decade before a new Congress from the alternate universe sent up a white flag. - Scott Read more about: Net Neutrality, open internet back to top | | Today's Top News 1. HP makes $1 billion+ bet on OpenStack Just a few years ago, whoever owned the desktop owned the computing space. Today, such a company may have a difficult time simply getting a good lease on it. Very rapidly, the enterprise IT space is centering on the cloud stack--the suite of platforms and services that enable businesses' existing data centers to coexist with public resources in the same pool. We've been calling this the "hybrid cloud," but that designation is disappearing. Giving it a swift kick out the exit door on Wednesday is HP. Along with a logo that looks like a discarded sandwich wrapper, the company announced the formation of Helion, its "all-in" bet on OpenStack as the underlying platform for its new branded services. "HP Helion moves beyond just cloud to become the very fabric of your enterprise," stated CEO Meg Whitman in another brilliant example of metaphor mixing. "It brings together all the benefits and agility of cloud computing, all the possibilities and innovation of open source and all the security and reliability that enterprises need." Although OpenStack is often characterized as a platform, its own name is a more accurate metaphor for what it is: a suite of platforms designed to be interoperable, and to enable interoperability. Helion will be an implementation of OpenStack that will incorporate the company's existing Moonshot "software-defined server," its Pronq brand of Web services (where Fortify and HP Anywhere ended up), its existing Converged Infrastructure management system, its Autonomy service (which is now being marketed as a customer engagement system) and its new public cloud, which will be given the Helion brand. Leading HP's charge into territory that Red Hat and IBM were ready to claim for themselves, is Bill Hilf, now HP's vice president for cloud products, but until just last September was Microsoft's general manager for its Azure cloud services. Azure, you'll note, is on the other side of the fence from OpenStack. "HP is investing heavily in OpenStack, to ensure the needed level of maturity and security is built to enterprise requirements, and to deliver OpenStack-based solutions to the global marketplace," stated Hilf Wednesday. "We understand what our customers need with OpenStack. We want it to be easy to install and easy to update and manage, and they need it to have a robust set of enterprise capabilities wrapped around the operating system, while staying true to the kernel and interfaces of the platform itself." OpenStack enables virtualized operating environments by way of open source hypervisors, such as KVM and Xen. This is a key product placement in the stack, as it pries loose major competitors such as VMware with vSphere and Microsoft with Hyper-V. KVM has been giving Red Hat, and more recently IBM, leverage to move key competitor strongpoints out of the enterprise--and now HP will be following suit. But in a more unusual demonstration of interoperability, Hilf announced that Helion will incorporate platform services from Cloud Foundry--which, while open source, is overseen by Pivotal--the company launched from the loins of HP competitor VMware. Hilf said HP made an additional investment in Cloud Foundry "because we know that customers need a full solution to realize the true promise of cloud computing that encompasses both infrastructure services and a robust platform for developers and applications. Infrastructure-as-a-service is important, but developers also need a fast, easy, and open platform to build and deploy applications. This applies equally to enterprise developers and independent software vendors moving to a full software-as-a-service delivery model." HP's forthcoming Helion Developer Platform will be built on Cloud Foundry's PaaS, he added. This means HP's PaaS will support Ruby, Java, PHP, Python and Node.js, or server-side Javascript, along with open source databases including MySQL and messaging queues such as RabbitMQ. While Azure began life as a .NET-oriented PaaS, Microsoft has since countered by adding support for these languages as well; though MySQL support is considered feasible, and Azure supports a different implementation of AQMP from RabbitMQ. For more: - see the HP Helion page - see the HP Autonomy page Related Articles: IBM, HP, Dell battle for second spot behind Cisco in network equipment market, says Infonetics HP, IBM battle for lead in shrinking server market, says IDC Read more about: Meg Whitman, CloudStack back to top | | This week's sponsor is CPL. |  | FastCast Webinar: Reduce Datacenter Energy Costs by up to 15%: Software Meets Datacenter ROI Friday, May 15th, 2pm ET/ 11am PT Join us for a look at two Intel Datacenter Software solutions, sample use cases, and implementation overviews. Intel Data Center Manager (Intel DCM): Energy Director provides device-level power and thermal monitoring and management for groups of servers, networking, storage, and other IT equipment. Register Today! | 2. Nokia Networks, Juniper Networks partner on telco cloud Mergers are only necessary when the emerging whole entity is greater than the sum of its parts. In recent years, this has become a rare occasion. Flying in the face of European business analysts who last February foresaw Nokia's NSN division and Juniper Networks merging, the newly minted Nokia Networks announced jointly with Juniper on Monday that they can both advance their goals with a smarter arrangement: a partnership. The result of this partnership will be a single OpenStack-based telco cloud platform, bundling together Nokia's Liquid Core NFV and core virtualization system for managing telco service applications, Juniper's MetaFabric switching and routing architecture and Juniper's Contrail SDN platform. The move will put both companies in a better position to tackle Alcatel-Lucent, as well as Cisco, Ericsson, Huawei and emerging NFV competitor HP without all that sticky reorganization hassle that Nokia doesn't exactly want to repeat right now. Under the terms of their arrangement, Nokia will be handling the end-to-end service part of the bundle--meaning it should take the lead in selling and representing the bundle to customers. Both SDN and NFV are architectural layers of abstraction. SDN creates an adaptable virtualized network that is best suited for the applications at hand, by dividing the control from the data plane and letting logical tables define the relationships between the virtual map and the real hardware. NFV can virtualize the real hardware, presenting a virtualized router map that can adapt more readily to the traffic it's carrying. When the two technologies were introduced, the tech press mistook them for being competitive. Actually, they're complementary, with the result of their integration being increased and prolonged utility of more generic server hardware. Last February, Rajeev Suri, the director of NSN's telecom business--now Nokia Networks' CEO--found himself in the position of downplaying rumors fueled by Reuters' reporting of his company merging with Juniper. At a Mobile World Congress press conference in Barcelona, Suri told reporters, "There are no synergies" between a wireless network company like his and a router and switch manufacturer like Juniper. Just because the platform incorporates products from different markets does not mean the markets can or should merge, Suri implied. It's a clear indication that this new CEO is capable of making some well-reasoned and sound decisions, in the face of pressure from investors to make headlines. For more: - see the Reuters report from February - read about Nokia's Liquid Core, Juniper Network's MetaFabric and their Contrail SDN - read about the HP Network Functions Virtualization - look over Rajeev Suri's comments on the partnership Related Articles: Nokia, the networks and services company, ventures forth Juniper is laying off 6 percent of its employees Read more about: OpenStack back to top | 3. Microsoft TechEd 2014: Keys to the conference All next week, FierceEnterpriseCommunications will present special coverage of Microsoft's annual TechEd event, which takes place this year at Brown Convention Center in the center of Houston, Texas. There are numerous vendors in the server, cloud and digital communications space so you may rightly be wondering--why Microsoft? In fact, that's perhaps the first and most important question on this year's docket: Why Microsoft? There's the obvious answer, which is that I've covered Microsoft in print and online for three decades, but that only suffices for me and not you. The question that information professionals are asking most pointedly today can be rephrased like this: Is Microsoft still relevant in the data center? That we can even be asking this question today shows just how far this industry has progressed in a few short years. The open source cloud--and especially in the last year, OpenStack--has carved out a substantive space for itself in the world's back offices. Hybrid cloud operating systems are, for now, the most efficient and cost-effective tools for pooling on-premise and public resources into shared, and even expedited, pools. And Windows Server is not on this list. Drawing a cloud around the Microsoft logo does not solve the company's problem of not having the most effective response to this challenge. Yet you're not reading a "trade publication" and the problems of a few folks in marketing may not matter a hill of beans in the world where you live and work. Nevertheless, open source cloud stacks don't run applications and they don't organize desktops. Windows does, and unless organizations truly want to spend significant sums on retraining their workforce (a consideration that looks more and more quaint in the midst of the BYOD era), Windows will continue to provide the workspaces for Office. Probably SharePoint, perhaps Exchange, and for their respective verticals: SAP, Salesforce, NetSuite, Workday, Avid Composer and Photoshop. And while you're thinking, there are more Macs in the workplace than there have been in quite some time, consider how many of those Macs are running Windows on virtual desktops. Is Microsoft a competitor in unified communications or a partner? Up until a few years ago, Microsoft's place in IP communications appeared cemented in place by partners like IBM and Cisco, who depended on Microsoft to provide customers with familiar front ends and portals like SharePoint, Outlook, and more recently, Skype. Microsoft's purchase of Skype plugged a rapidly leaking hole in its ship of state. Customers were moving to "over-the-top" communications and conferencing platforms, whose performance degradation was more than made up for in cost savings. But Skype hasn't bailed out the boat just yet. Although Outlook remains the contact station for most organizations' desktops, as you know, desktops are moving. Contact is becoming centered on mobile devices, and Microsoft's toehold in that space is actually slipping. CIOs are asking themselves, when will it be time to divest from Outlook and move to a new center of contact that suits mobile devices? The answer is a jump ball, for now, because no one has really come up with an Outlook alternative that interfaces with Exchange as efficiently, but that adapts to the mobile space. If Microsoft beats its competitors to this prize, it still has a chance to maintain its stake in communications, and potentially leverage that stake to launch a wave of competitive communications services. Maybe it's Lync, but Lync will need to evolve this year before it starts looking like The One. What role should Azure play in a cloud dominated by Amazon? Azure (now without the "Windows" part) started out as a PaaS service for running scalable .NET applications through the cloud. To be competitive, Microsoft added IaaS to Azure's menu, and can now run Windows instances there as well. But Microsoft is not also a major retailer, and doesn't have the kind of cash flow that would enable it to almost blindly construct cloud data centers at any point on the map it can throw a dart at. It can't compete on volume, so it has to be smarter. "Smart" in this instance needs to be a value proposition that includes better price, better service and differentiated features. But the public cloud market is quickly becoming commoditized, and VMs are being sold in bulk like bushels of corn. That's all part of Amazon's plan, because Amazon can cash in on this business plan where competitors can't. Google can't, because it would have to compete on quality. One smart reason for dropping "Windows" from the Azure name was to make it easier for Microsoft to market Linux-based VMs, a commodity that organizations require. That brings Azure into the larger public cloud market, but now it has to make its case for being a challenger. And when I've asked for a one-sentence summary of what makes Azure a challenger, up to this point, I haven't gotten it. I expect better from Microsoft next week. These are the three key questions I'll be asking all week, as I speak to and network with Microsoft's engineers, product managers and partners. We'll revisit these questions throughout the week here in FEC, and we'll return to them at the end to see how well they've been addressed and answered. Let's keep in touch. For more: - see the Azure page on virtual machines Related Articles: Level 3 gives enterprises private connection to Microsoft Azure cloud So the Cloud and Enterprise guy is going to run Microsoft Read more about: Microsoft back to top | 4. Microsoft's Iowa tax savings vulnerable to climate change The announcement a few weeks ago that Microsoft will be building another cloud data center in Iowa--its second in that state, larger than the existing one--is being touted as a defeat for Washington state lawmakers who failed to extend tax credits for cloud data center construction in time for Microsoft's decision. But for all the political maneuvering, the extent of Microsoft's savings for building in Iowa instead of Washington may one day soon be wiped out by, of all things, the weather. As the Seattle Times first reported, apparently partisan politics in Washington's state legislature--from Republicans who wanted to extend server farm tax breaks, versus Democrats who wanted Republicans to discuss any new legislation first--prevented them from passing an extension of annual tax breaks Microsoft and others had received in the past. Days later, Iowa Gov. Terry Branstad (R) was all smiles, noting that Microsoft's $2 billion commitment to both Iowa locations represents the single largest outlay by a single company in the state's history. Gov. Branstad may want to keep a weather eye out, as we say in the Midwest. Iowa used to be known for its temperate climate, with an average relative humidity of around 60 percent in the afternoons, and high temperatures that have rarely peaked into the triple-digit range during the summer. But the patterns of climate change are converging on the Midwest, resulting in some of the strangest extremes the state has ever seen: record low temperatures last July, and just this week, some of the hottest temperatures ever recorded for May. These extremes are so brutal, they're tearing Iowa's urban infrastructure apart like an old accordion. Both Iowa's and Washington's commercial power costs have been among the lowest in the country: about 8¢ per kilowatt-hour for Washington, versus about 8.15¢/KwH for Iowa, well below the 10.7¢/KwH national average, according to U.S. Energy Information Administration data for last February. Average commercial energy prices for the northeastern U.S. were as high as 14.63¢/KwH. So Iowa gives Microsoft a way to deliver cloud compute and data capacity from a reasonably close distance to the northeast--as opposed to, say, Seattle--with 56 percent less energy costs. That can translate directly into per-unit savings costs for Azure cloud service customers, and Microsoft needs every advantage it can muster to compete against Amazon. Researchers with the Open Data Center Alliance believe electricity costs account for roughly one-third of the total costs of running a cloud data center (.pdf). The State of Iowa reportedly offered Microsoft a $20 million sales tax break to build that second data center. That could buy Microsoft about 245 million kilowatt-hours, or KwH, of Iowa electricity. But if Iowa's climate remains on its present course, its energy costs could raise, and that $20 million could disappear fast. Let's do some more math: According to Touchstone Energy, the average office building consumes 17 KwH per square foot of electricity, computed annually. Hard estimates for cloud data center consumption are all over the map, with the U.S. Environmental Protection Agency saying one could consume 100 to 200 times that much power. Looking at Facebook's data center consumption for 2011, we arrive at a much more conservative estimate: about 600 KwH per square foot. Microsoft's new data center will be an estimated 1.16 million square feet, for a rough estimate of 696 million KwH/sq2 consumed annually. At Iowa's prices, that's a little over $56.7 million in annual energy costs. So the $20 million tax break is worth a bit over 4 months' worth of electric bills. In states with less temperate climates than Iowa's, it costs more to produce electricity, and those costs are passed down to customers. If Iowa's power prices were to rise to the national average of 10.7¢/KwH, Microsoft would be paying about $74.5 million in annual power costs. Conceivably, if Iowa's climate change pattern continues, Microsoft could lose the amount of that tax break in as little as one year's time. For more: - see the Seattle Times blog post - see the U.S. Energy Information Administration data - download the Open Data Center Alliance report (.pdf) - see the U.S. Environmental Protection Agency's comments on thebreakthrough.org Related Articles: Chill out! Reports from inside Iceland's newest data center Google opens data centers in Taiwan, Singapore Read more about: energy costs, Microsoft Azure back to top | 5. Cisco says new 'uberbots' threaten data centers Up until last year, a security firm called Sourcefire was a handy one to have on hand for understanding the specific sources of malicious network activity--at times, the granularity seemed fine enough that you might start to expect them to come up with names, phone numbers and what middle schools they attended. Cisco figured this out and acquired the firm last July. The upshot of that acquisition can be seen in this year's Cisco annual security report (.pdf) published last Wednesday. In that report, Cisco began implementing a detection technique Sourcefire created called indicator of compromise, or IoC. It's a big data analytics function that encompasses tremendous volumes of network activity, in order to draw correlations between events that human eyes would have easily overlooked. At this level of magnification, it's easier to see how all the capillaries of malicious activity, if you will, lead to a common artery. Cisco provided some hints as to the identity of that artery in January, but has confirmed it in this year's report, with a data point so stunning it boggles the mind: Some 91 percent of all network activity that leads to IoC--based on Cisco analysis of customers using Sourcefire monitoring tools--traces back to Java. "Java provides an attack surface that is too big for criminals to ignore," the report reads. "They tend to build solutions that run exploits in order--for instance, they first attempt to breach a network or steal data using the easiest or best-known vulnerability before moving on to other methods. In most cases, Java is the exploit that criminals choose first, since it delivers the best return on investment." Put another way, the Java runtime installed on client systems provides malicious actors with an automation mechanism for exploits. It may actually be the only such outwardly automatable mechanism currently in use--this as the number of such exploit events continues to rise. In April 2013, Java exploits constituted some 14 percent of all Cisco's measured incidents of malware encounters. And if you're wondering why Oracle hasn't fixed this problem, here's the thing: It has. But the already boggled mind can only become stupefied by this subsequent data point: While 90 percent of monitored customers installed the Java 7 runtime where a number of the vulnerabilities that lead to exploits have already been fixed, 76 percent of those customers also have Java 7 installed concurrently. The reason has nothing to do with ignorance or laziness: Old software can't scale up. Applications that run on Java 6 and not Java 7, despite Oracle's phase-out of Java 6 support, are not being scaled up. Perhaps their authors aren't in business any more. "If security professionals who have limited time to fight Web exploits decide to focus most of their attention on Java," states Cisco, "they'll be putting their resources in the right place." A glimmer of optimism comes from the real-time TIOBE Index, which measures the relative popularity of programming languages based on Web activity among developers using those languages. Java's relative popularity has been on a steady decline, and has slipped below that of C by about 0.3 percent, with 17.3 percent of measured activity. Objective-C, the high-level language used in iOS applications, has been rocketing into its own in third place, with nearly 13 percent activity. Elsewhere in the report, Cisco discusses the uptick in incidents involving malicious backdoors that actually replace the binaries of Web servers (often Apache) with server software that injects malicious iframes (invisible windows with attached scripts) into unsuspecting client browsers. Cisco has dubbed the source of this phenomenon "überbots" because they exhibit a collective behavior that suggests an intelligent common core. For example, while one such überbot tagged Linux/CDorked can infect Web hosting providers, it exhibits malicious behavior for each domain being hosted only for limited times, and only in what appear to be timed bursts, so as to avoid detection by heuristic software looking for behavior patterns. The report quotes Cisco's director of threat intelligence Gavin Reid as saying: "Combined with the recent spate of brute-force login attacks against individual websites, we appear to be witnessing a changing tide, where the infrastructure of the Web is being used to form what can only be described as a very large--and very powerful--botnet. This überbot can be used for sending spam, delivering malware and launching DDoS attacks on a scale never before seen." For more: - download Cisco's annual security report (.pdf) Related Articles: Linux Foundation enlists Microsoft, Cisco, Facebook to help save OpenSSL WhiteHat security: Testing beats built-in frameworks for remediation Read more about: indicator of compromise back to top | Also Noted | This week's sponsor is RAMP. |  | eBook | Finding the Payoff in Enterprise Video Video is a powerful medium for communication. Its potential uses range from sales and marketing through employee communications, training and more. But enterprise use has grown in fits and starts. In this eBook, FierceCIO explores the capabilities, culture and infrastructure to find the payoff in enterprise video. Download this eBook today. | SPOTLIGHT ON... Really big, big data: Government transparency at two bucks per page Real estate records--especially the kind that clog up city and county records buildings--do not come cheap. They're on paper, and liable to be on paper for the foreseeable future, especially in major cities like Cleveland, Ohio. You have to feel some sympathy for the folks who are called upon to retrieve these records at the public's request, as though they're human Googles. But how much would you pay them for the work they do? If they were wait staff in restaurants, it might not matter how poorly their managers paid them in wages if they could earn sizable tips. Suppose there was an equivalent of tips for public records officials, a kind of surplus... that citizens could be forced to pay. That was the issue faced by a Cuyahoga County court, and whenever there's state and local government bureaucracy in the information department, you'll find my friend and colleague, Sharon Fisher. 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