Scott Handy Q&A: IBM PowerLinux

As part of our ongoing series of Q&As with high-tech industry luminaries, ITIC Principal Laura DiDio spoke with Scott Handy, IBM vice president of strategy and business development for PowerLinux. Handy discusses IBM’s latest lineup of PowerLinux products and how they align with Big Blue’s strategy in pivotal market segments like Big Data, Virtualization and cloud computing. Handy is a 20+ year IBM veteran and a longtime Open Source proponent. Prior to this, he was vice president of worldwide Linux and Open Source for IBM. In addition, Scott has held numerous executive, technical sales, marketing, and strategy positions covering Large Accounts, Channels, Small and Medium Business and IBM solutions for Windows NT, Sun Solaris and OS/2 Warp.

Laura DiDio, ITIC: Can you provide us with an overview of IBM’s PowerLinux products and strategy?

Scott Handy: The new PowerLinux products are an extension of IBM’s overall Power Systems strategy. We want to address the Linux x86 markets and generate more growth for Power by providing IBM customers with optimal performance and reliability at an extremely affordable Total Cost of Acquisition (TCA) price point. Linux operating systems already run on Power Systems today, but it is the smallest of the three operating system distributions that IBM Power Systems supports: AIX, IBM i and Linux. We deliberately picked three solution segments to focus on this initially, and that will grow to six by the mid 2013. They are:

  • Big Data Analytics: The Power7 series servers have four (4) threads per core versus Intel’s two (2) threads per core, and can optimize workload performance for platform-kernel, tool chains and libraries. 42% faster sorting a terabyte of data, per IBM Research results.
  • Open Source Infrastructure Services: This includes support for Web, Email, social networks, and faster and improved economics with PowerLinux & PowerVM.
  • Industry Application Solutions: The PowerVM Integration Virtualization manager simplifies and eases deployment and automates most routine daily tasks by providing businesses and their IT departments with a single system to address multiple virtual application and database servers.

Each of these segments offers tangible performance and cost benefits to corporations in a wide variety of vertical markets, including IBM’s traditional core competencies in government, finance and healthcare.

ITIC: How big is PowerLinux in terms of revenue and number of customers? And how fast is this market segment growing within IBM?

SH: IDC (International Data Corp.) data shows that [the worldwide revenue for] Linux is $10B by 2015. Our Linux revenue grew 29% last year in the Power Systems market, and we want to continue to dramatically expand that growth rate. Our initial focus is three solution segments, growing to six by mid-2013. Our initial success in the pilot has proven to us that we have the right value and performance mix to grow the PowerLinux segment. We anticipate PowerLinux will continue to grow faster than the overall Power Systems growth.

ITIC: Describe the target audience for IBM’s PowerSystems Linux-based applications and how you’ll differentiate your products from rivals like VMware in virtualization?

SH: We’re focused on delivering new types of applications and functionality that were not previously available. For example, we’ll enable customers to analyze how their brands are perceived in analytics of blog or posts on social networks like Facebook and Twitter. We’re also aligning the applications with the specific vertical markets. So a bank or financial institution can use the analytic capabilities for better fraud detection.

To accomplish this we felt we needed more [Linux] products priced comparably to x86 offerings. The Linux market segment has a different buying behavior and purchasing patterns. We’ve analyzed that buying behavior, which is much more focused on Total Cost of Acquisition (TCA) and price/performance. We know we have to take price off the table [as a purchasing inhibitor] to get in the door. IBM’s Power Systems group is very focused on companies that use virtualization. We can leverage our economies of scale to compete more effectively. Our PowerVM virtualization for example, is priced 16% below VMware’s competing product.

IBM’s strategy is not to get into a price war with Intel but to compete on hardware, virtualization and superior client value on Big Data, Industry Application Solutions and virtualized Open Source Infrastructure Services (OSIS). The latter (OSIS) is very high volume. Over 50% of companies deploying Linux are using free Open Source solutions. There are over 2,500 open source packages. The top five are LAMP, Open Source Email, SAMBA File/Print (soon to be directory services), edge of network services such as Proxy DNS servers, security and a DNS firewall. These are included free in Red Hat Enterprise Linux (RHEL) and SUSE Linux Enterprise Server (SLES). We feel the Power Systems virtualization is superior to VMware in price. And because it’s built into the hardware, there’s less overhead and superior efficiencies; we offer more VMs per server. IBM customers understand the benefits. Finally, IBM Power Systems offer TCA pricing that’s 30% below the competition when virtualized. And 30% below in this space is enough for people who want to move. And there’s no re-training required. We have a lot of customer wins – we’re in five countries already, and we have 118 opportunities and wins in every country that we’ve piloted and in all 3 solution areas we are targeting. Its working.

ITIC: IBM sells industry standard Red Hat Enterprise Linux and SUSE Linux Enterprise-only servers optimized for the Power server architecture. Will IBM provide technical service and support for PowerLinux customers who implement customized versions of Red Hat and SUSE?

SH: Yes,for custom implementations we will support the back end. Fewer customers are doing significant customization. The majority of users find they can get the required features and functionality in the standard Red Hat and SUSE distributions. About 50% of customers will choose IBM Level 1, 2 or 3 support. They can also sign up for a custom solution support. Currently, we have about one dozen customers with customized Linux implementations on Power Systems. We assist with them with the creation of [the necessary] custom changes, and then they can sign up for integrated support. To prove the point, our first PowerLinux customer win in Japan was with Fixstars, for a Big Data appliance, using Cloudera for Apache Hadoop, running on Yellow Dog Linux. We made it all work with support behind it.

ITIC: IBM’s PowerLinux group focuses on three solution areas: Big data analytics (IBM InfoSphere, Biginsights and Streams), Industry Application Solutions (workload optimization) and Open Source Infrastructure Services. How will you address them?

SH: Big Data analytics is very interesting.About 80% of data is unstructured versus 20% that is structured in a traditional database. However, 80% of the processing is done on 20% of the structured databases. There are new tools – predominantly around Open Source Hadoop framework. You can create new types of applications. The most interesting is the branding around social media. People can understand what’s good about their brand and what’s new about their brand. This includes marketing people who want to put programs in place to accentuate the positive and nullify the negative. Governments are using it to find criminals. It’s also interesting to look at log data around computer usage. We help to improve IT operational efficiency e.g., detailing the issues that cause [system and application] crashes. Less than 20% of IT is software; the rest is people. If you address this you can save companies a lot of money by helping them leverage change management and reduce labor costs.

We got a head start by putting these things on PowerLinux with Watson’s intelligence. Big Data is predominantly a Java-based solution and IBM’s products have twice the memory bandwidth and storage I/O bandwidth compared to Intel. Big Data is not just about playing Jeopardy with Watson. It is useful and applicable in a variety of verticals. For example, hospitals are using advanced medical applications to reference symptoms in newborn infants to predict a medical condition – infections — 24 hours before they occur. Like Big Data, Industry Application Solutions and Open Source Infrastructure Services are all areas that highlight advanced features and provide customers with tangible value.

With Industry Application Solutions, IBM knows that ISVs and OEMs want to bundle hardware and software. That means you have to workload-optimize the systems. We’re either putting accelerators or specific tuning into bundled solutions. Within PowerLinux, we can get memory bandwidth and I/O storage into the chips and feed it. We provide customers with economic value based on the way we optimize the system.

With Open Source Infrastructure Systems we take applications already bundled with Red Hat Enterprise Linux and SUSE and improve the performance. One of our early adopters, the University of Hamburg, reported 50 percent better performance and throughput with 30% reduction in TCA versus an x86-based approach.

ITIC: IBM’s Watson has been featured prominently in the news in recent months – particularly after the Jeopardy challenge. What role does Watson play with respect to PowerLinux?

SH: There are two elements: it was a big deal for IBM Research to win the game using Power technology. They ported all the software to PowerLinux that we’re using for Big Data, and this was the first substantiation of the proof points vs x86. What’s even more interesting is that beyond Jeopardy, we’re taking the technology and applying it to real world problems. WellPoint – one of the largest health benefits companies in the United States – leverages it as a mechanism to enable doctors look at much more data and to try and determine the right treatment. Each vertical industry has a unique use case. Citibank signed up with us to use the technology to improve fraud detection and better understand customer activities across many accounts. Customers will also benefit by getting better services and government as well. In addition, Watson interprets speech. Watson has to figure out how the speech was generated. A government agency might use to the technology to understand the context of the speech; this is crucial when you’re spanning the Web. And Watson is performing these functions in all languages, not just American English.

ITIC: What are the specific cost/performance advantages of IBM’s newest PowerLinux servers like the 7R2 compared to competing solutions from Dell and HP?

SH: In general, we have a faster processor that comes in a multitude of flavors such as a 3.7 GHz equipped with better memory and storage I/O bandwidth, and we’re workload- optimizing the system to achieve a total performance/solution advantage. We’re driving real client value.

ITIC: Could you detail how IBM’s POWER7 processors compare to rival Intel processors?

SH: We have basic fundamental improvements – we run four threads per core vs. Intel’s two threads per core. That gives us 50 percent better throughput. We also have the Active Energy Manager, a very sophisticated capability that determines what it needs to run most efficiently. For instance, it will tell IT managers, or can be set to dynamically change, not to use threads or cores that they don’t need.We very intelligently manage the performance and energy usage. On average, an x86 only system utilizes 15 percent energy. An IBM POWER processor can give customers 60 to 80 percent utilization so they’re not wasting power. Our virtualization has so much more capability than competing offerings. We can do shared pools and dedicated shared pools and in 10 milliseconds we can switch it over to the one that thinks it’s dedicated. We adapted this technology from our mainframes, which run at 90% to 100% utilization.

ITIC: Virtualization and Cloud Computing are two critical market segments. How do the latest PowerLinux servers address users’ virtualization and cloud computing needs in terms of additional performance, scalability, reliability and security?

SH: I’m very pleased with a customer – a large hosting company with over 70K servers. They had not purchased any IBM equipment. They asked for two machines and found that the latency was 54 percent less. We also have a virtual machine density advantage – even with 1 virtual machine, IBM Power, PowerLinux achieves 131% better throughput than VMware – more than twice VMware. And when you get to multiple VMs we can get dramatic – 500% improved throughput on multiple servers with 32 virtual machines on a 2-socket server. Also, we’ve found that customers aren’t particularly happy with VMware’s recent price hikes. Customers are telling me that IBM’s unlimited virtual or physical memory per license can save them significant dollars vs VMware’s limit which increments on a 96GB memory total virtual memory limitation per socket regardless of how much physical memory is installed.

Our customers also like the ability to tune Service level Agreements (SLAs) and in a cloud environmentthat’s very important. Our VMs don’t know the other VMs exist so the security is perfect. PowerVM has NO security violations, and VMware has 135 security flaws in the last year. If you’re in a cloud environment and trying to do multi-tenancy, multi-client, security is paramount.

ITIC: IBM’s AIX also runs on PowerSystems servers. Can you differentiate what types of functions and applications are suitable for AIX and where PowerLinux is the better choice?

SH: We have many good AIX customers who have come from Solaris and HP UX environments – over 1,000 customers a year for the last two years. They all went to UNIX if they migrated to us. But many who consider themselves UNIX customers and also buy Linux x86. We picked the workloads for PowerLinux to focus on that are predominantly Linux to attract partners, resellers and ISVs, like Big Data – e.g. Hadoop only runs on x86 so by definition there can be no cannibalization. Our data shows that we have 118 potential customers that have no Power Systems installed, so this is incremental business. And, we’re getting the Linux x86 businesses in a Power account. We have a ton of benchmarks, and in general, the two operating systems are very close in terms of performance. Because our hypervisor is underneath both AIX and Linux, the performance is pretty comparable. The better comparison is between PowerLinux and x86. We’re in a scale-out computing mode when you compete with x86; they can’t keep 1,000 servers up and running, and we can. RHEL and SUSE on PowerLinux will be more reliable on IBM Power Systems than on an x86-based system.

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Steve Sommer Q&A: Virtualization, Cloud & DR

Steve Sommer has seen just about everything in his 30+ years as an IT executive. As a Chief Information Officer (CIO) and Chief Technology Officer (CTO) since the late 1980s he’s witnessed the industry’s transition from the “dumb” terminal/server paradigm and slow, kludge dial-up to today’s “always on” networks. He’s also participated in and grappled with all of the positive and negative aspects of transformational and disruptive technology trends. Sommer has experienced firsthand how the “consumerization of IT” and the rapidly increasing numbers of remote users accessing the network via smart phones and tablets impacts IT, security and how companies do business in the 21st Century. Sommer is currently CIO at Stromberg & Forbes, LLC, a financial services company with offices in New York and Florida. Prior to that he spent 25 years at Hughes, Hubbard and Reed a law firm headquartered in New York City. He worked his way up at HH&R to become CIO and CTO, holding down both jobs simultaneously. ITIC interviewed Sommer on a wide range of topics including: the Pros and Cons of new technologies like virtualization and cloud computing. He also talked about the impact and implications of end users utilizing consumer devices for ubiquitous connectivity. Sommer also dispensed practical, tactical advice on how organizations can construct a strategy for efficient and secure mobility and remote access. As an eyewitness to the September 11, 2001 attack on the World Trade Center, Sommer talks about the terrorist attack has changed the way companies view disaster recovery (DR) and backup plans in a post 9/11 world.

Laura DiDio, ITIC: Virtualization and cloud computing are two of the most pivotal technologies to emerge in the last five to seven years. Do all users from SMBs to enterprises need them and why?

Steve Sommer: There’s no escaping virtualization; that’s the way the industry is going and SMBs should follow; they have just as much need for virtualization as large enterprises. The density of the data, the content, the critical nature of applications and business continuity all make virtualization imperative. It saves money, provides consolidation and it’s easier to maintain a streamlined environment. Virtualization allows for better testing and faster, more efficient disaster recovery (DR). Virtualization preceded the cloud. But cloud computing is different. There are many dangers inherent to the cloud. Any SMB contemplating a move to a public, private or hybrid cloud must realize that cloud computing isn’t free or cheap. This is especially true for SMBs with more limited resources and smaller budgets. But a well planned cloud implementation will deliver better economies of scale and alleviate the burden on IT. From my perspective, Google, and Apple are not the best solutions for an SMB cloud. The issue is that end users in SMB organizations utilize Google’s and Apple’s iCloud as consumers but they’re not necessarily worried about their company’s security, costs and integration issues. The users are just concerned with accessing their data whether they’re at home or in a public facility like a restaurant, kiosk or a plane. Typically, end users are ignorant of the business’ support costs and security ramifications. They don’t grapple with the problem of how the organization will support the cloud. That said, eventually almost all SMBs, like large corporations, will need a cloud; they won’t be able to compete effectively otherwise.

ITIC: For SMBs that lack the money and the IT resources of larger enterprises, does it make more sense to go with a public, private or hybrid cloud?

SS: If you lack the funds to hire an external cloud services provider, then you’ll need a private cloud using something like Microsoft’s SharePoint. However, even a private cloud managed internally, is an expense because you have to tweak and expand the infrastructure to accept the users accessing the private cloud. That’s a lot of work. You have to publish your information outside the firewall and build a secure environment to allow people to access crucial information. Your infrastructure has to change and evolve [to accommodate the cloud]. For example, you’ll need to upgrade the WAN. SMBs, like enterprises can support private clouds capably on their own. However, they will need in-house expertise and it will still cost money. SMBs need to build a cloud in steps; a hybrid cloud is a good choice for an organization starting out and getting its feet wet. Even a large retailer like L.L. Bean has partnerships with outside vendors. A public cloud is optimal but the gating and inhibiting factor is the expense.

ITIC: What are some of the most crucial issues that organizations should consider when implementing a cloud environment?

SS: If you’re going with a public cloud, there’s a lot to consider. The first is training your people and put the proper controls in place. Next, you have to decide on approved applications and which if any applications to blacklist. Most SMBs today are ready to transition to the cloud. The most important factor is selecting the right vendor. You have to perform due diligence. You must assess key elements of your planned cloud implementation such as: security, storage capability, the reputation and strength of the vendor in the marketplace. What cloud providers are your SMB peers using? The telecom vendors like Verizon have the best opportunity to partner with data vendors. I think we’ll see partnerships between companies like IBM and Verizon. Test first and decide the order of the applications and content you want to put on the cloud. External providers can provide the best portals for data access. You have to address issues of security, data retention, data loss, tracking, response time. And the business must balance its needs with those of the consumer public, end users and customers. Each vertical industry is different and subject to specific compliance regulations. Legal and healthcare are very strict about confidentiality. But ironically, legal and healthcare users carry around the mobile devices and they frequently get lost or stolen. So you have to assess the risks. How do you support the various amounts of data accessibility with legacy applications? That’s another big concern.

ITIC: Another major trend is remote access and mobility. Do you have an specific “Dos and Don’ts” for fellow CIOs, CTOs, IT managers and users with respect to constructing a workable technology and business strategy to address the growing ranks of remote workers?

SS: The biggest risk for device access is data loss. Security is another huge issue.

  • Do construct an end user usage policy. And provide them with training to understand the technology and business implications.
  • Do find the application that fits for the majority of your devices. Finding a common avenue of access is very crucial.
  • Do take responsibility to own the device or not. Who owns what? That is a cost issue.
  • Do make sure you have top notch security in place. Choose the right security vendor – are they all inclusive and do they have the knowledge base to support your organization?
  • Do communicate the remote access policies and get buy-in from the management and all appropriate departments. You can’t have discord/disconnect among management, end users and IT.
  • Don’t give your end users five different ways to access information. It’s confusing and will be a resource drain in terms of support.
  • Don’t give in to user pressure to do things a certain way. The easiest way is always the best method of accessibility. Stand your ground. Don’t go ahead and promise without the proper infrastructure support.
  • Don’t do it alone. Don’t think you can supply security, data storage, remote access etc. You need an external partner and be upfront with management to tell them exactly what needs to get done.

ITIC: Apple’s iPad was introduced in April 2010 and it’s sparked a real revolution. Lots of people are saying “the PC is dead.” Do the iPad and other tablet devices have enough functionality to supplant PCs and notebooks as the next generation desktop?

SS: I don’t think the PC is dead. Laptops are definitely diminishing because of the iPad and other tablets. For the desktop intensive worker the PC still has a place in performing compute intensive and transformational activities. There will still be billions of PCs although laptops will diminish. Five years from now there won’t be as many PCs but the PCs will still do the heavy lifting unless/until iPads have more storage, more computational power. There will be less and less need for PCs but they will still exist.

ITIC: Remote access, mobility and the use of myriad devices to connect to the network from tablets to smart phones have made security even more challenging. What poses the greatest security threat to the corporate network in 2012 and beyond?

SS: From a technical perspective, social media sites and social applications are killer; they are the biggest threat out there.Facebook, Google and others can get at your information and violate privacy. However, human error constitutes a greater threat than malware. People are just not careful. A high percentage of the population works from home or travels. They think nothing of accessing entertainment and social media sites that grab our information. The portability of information is another huge concern. We’re carrying around sensitive data – both professional and personal — and losing it in planes, trains, taxis etc.

ITIC: What’s the most memorable, defining experience you’ve had in your IT career?

SS: Without a doubt the most horrible and yet redeeming/rewarding experience was living through the 9/11 attack on the World Trade Center. The Hughes, Hubbard and Reed law offices were only three blocks away from the Twin Towers. I was just emerging from the subway when I saw the first plane hit. It was horrific and chaotic. People were naturally terrified; no one knew what was coming next. The communications systems were overloaded and unavailable. In the immediate aftermath of the attack, my first priority was to safely evacuate the staff out of lower Manhattan. I stayed behind and shut the systems down. I had to properly secure the data since we lost power and communications. We weren’t allowed back in our offices for a week and a half. We relied on our branch offices and phones to get headquarters people re-connected. We had lost all our Verizon and AT&T telecommunications. Microsoft had people at our branch offices on September 13th. They just showed up and helped us restore systems using DSL. We used Windows NT as a router and constructed our own routing protocol. Bill Gates himself ordered people to come down and help out. We were lucky; we didn’t lose any data because we had a backup plan in place. Post- 9/11 we knew we had to improve our disaster recovery capabilities. I got approval to do a DR co-location 30 miles away. That may not always be the most appropriate thing. But the 9/11 tragedy convinced businesses that they must have a DR and restore functionality for their most business critical applications. We got our new plan up and running in less than a year with Verizon. The 9/11 terrorist attack forever changed DR and backup. The tragedy also contributed to the increase in remote access and mobility. The biggest lesson of the 9/11 terrorist attack was that we must be ready for anything, respond quickly and adapt.

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Facebook IPO Flops; Can it be Fixed?

The honeymoon is over for Facebook and Mark Zuckerberg. In fact, it ended before it began.

Facebook’s long-awaited and much hyped IPO is less than a week old and the blame game is on as the company has lost nearly 20% of its value since the initial offering.

After three days of trading Wall Street’s take on Facebook has gone from jubilant to jaundiced.

The stock ended its first full day of trading at $38.23 – essentially flat from its $38 opening price though it did manage to set an IPO record for the sheer volume of trades — 567 million shares on opening day last Friday. Investors hoped for a turnaround. That never materialized. On Monday, a selloff prompted the shares to fall by nearly 11%, ending at $34.03. The news worsened Tuesday. The stock sank another eight percent down trading in the $31 – $32 range. …

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IBM Powers Up New PowerLinux Products, Strategy

IBM this week unveiled its latest generation of industry standard Linux-only servers optimized for its Power architecture along with a new strategy targeting specific x86 applications and workloads.

IBM has been a longtime Linux proponent, supporting industry standard distributions like Red Hat Enterprise Linux (RHEL) and SUSE Linux Enterprise – on its Power Systems line for the last 12 years. This week’s announcement reaffirms Big Blue’s commitment to Linux and broadens its scope with offerings designed to drive more growth for the Power platform in the lucrative x86 arena. IBM will fuel this growth via its mantra, “Tuned to the task,” which emphasizes delivering higher quality and superior economics than rivals.

According to Scott Handy, vice president of IBM’s PowerLinux Strategy and Business Development, “This is an extension to our overall Power strategy to address the Linux x86 space and drive more growth for our Power Systems servers.” …

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National Advertising Council Tells Oracle to Discontinue Misleading IBM Ads

The always heated ongoing rivalry between Oracle and IBM, just got more contentious, with the recent news that the National Advertising Division (NAD) has called out Oracle for publishing misleading ads in The Wall Street Journal and The Economist claiming Oracle’s T4-4 server is 2x faster and 66% cheaper than IBM’s comparable P795 server.

NAD, a division of the Council of Better Business Bureaus, based in New York City recommended that Oracle discontinue “certain comparative performance and pricing claims” in the national newspaper ads and on the www.Oracle.com website. Specifically, the NAD took exception to Oracle advertisements claim that “Oracle’s SPARC SuperCluster T4-4 system retails for $1.2 million whereas IBM’s P795 high end server costs $4.5 million – an improbable $3.3 million price discrepancy.

The NAD functions as an objective and impartial self-regulatory forum for the advertising industry. In its official determination, the NAD took pains to remain objective. It noted that both the advertiser (Oracle) and the challenger (IBM) produce high quality computer systems. …

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IBM STG Group Posts Positive Gains, Offers Strong Strategy & Growth Roadmap

Vendor sponsored Analyst conferences are oftentimes long on self-congratulatory hyperbole and short on substance. That wasn’t the case with IBM’s Systems and Technology Group Analyst conference held last week in Rye Brook, NY.

The STG conference, led by Rod Adkins, Senior Vice President of the STG Group, showcased the division’s solid accomplishments over the last several years and detailed the current and future product roadmap and investment strategy. Investments focused around three major areas: Systems, growth markets and strategic acquisitions. Adkins could have easily added a fourth category: patents. The U.S. Patent Office granted IBM’s STG division 2,680 patents in 2010 and it could exceed that number in 2011. One only has to scan the headlines and peruse the ongoing patent purchasing frenzy and the plethora of lawsuits involving all of the major vendors to realize the pivotal role patents play as both and offensive and defensive weapon. IBM, in its Centenary year, holds more patents than any other U.S. technology vendor.

STG 2011 Milestones

Noting that STG is aligned with IBM’s overall growth strategy, Adkins detailed the division’s milestones throughout the first three quarters in 2011. They included: …

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IBM, Stratus, Microsoft Score High Marks in ITIC Fall 2011 Global Reliability Survey

For the third year in a row, IBM AIX v7.1 UNIX operating system (OS) running on the company’s Power System servers scored the highest reliability ratings and recorded the least amount of overall downtime from Tier 1, Tier 2 and Tier 3 outages among 18 different server OS platforms.

Over three-quarters or 78% of survey respondents indicated they experienced less than one of the most prevalent, minor Tier 1 incidents per server, per annum on IBM’s AIX v. 5.3 and AIX v 7.1 distributions. An 83% majority of IBM AIX v 7.1 and Novell SUSE Enterprise Linux Server 11 and 82% of Windows Server 2008 R2 survey respondents indicated their organizations experienced less than one unplanned, severe/lengthy Tier 3 outage per server, per annum (See Exhibit 1).

Microsoft’s Windows Server 2008 R2 (which scored the biggest year-over-year reliability gains), and Novell’s SUSE Enterprise Linux Server 11 closely challenged IBM’s AIX v 7.1 server OS reliability and uptime – particularly with respect to the most severe and costly Tier 3 outages. Unplanned Tier 3 outages – whether manmade or as the result of a disaster — typically cause downtime in excess of four hours. There is widespread disruption of applications and network operations; customers and business partners are frequently impacted and Tier 3 incidents will almost always require remediation by a significant portion of the IT staff. …

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Stu Sjouwerman Q&A: Security

Longtime security professional, Stu Sjouwerman is the founder and CEO of KnowBe4.com a Tampa, Florida-based security startup that specializes in on-demand Internet Security Awareness Training (ISAT). The company’s goal is to enable organizations to quickly solve the increasingly urgent security problem of social engineering and avoid attacks before they occur. Sjouwerman also publishes an Electronic newsletter called Cyberheist. Prior to founding KnowBe4.com, Sjouwerman was president, CEO and founder of Sunbelt Software – now GFI Software which makes the VIPRE security package. He is also the founder and former editor of the popular WServerNews electronic newsletter which has a worldwide distribution. ITIC recently sat down and interviewed Sjouwerman about security threats and how companies can defend themselves.

Laura DiDio, ITIC: Tell us about KnowBe4.

Stu Sjouwerman: We are next generation security awareness training. That means old style security training doesn’t cut it anymore – it’s not enough to follow dos and don’ts. We do simulated phishing attacks – fully automated – for customers to let them know who the culprits are in advance of an attack. It’s preventive. We train people to be well aware of phishing attacks that are out there. Our main focus is on phishing attacks but it’s not our only focus.

ITIC: What’s the top headline in security these days?

SS: Cybercrime is big business. It’s everywhere, but it’s especially proliferating and flourishing in Eastern Europe and Russia. There are many are ex-KGB agents who have teamed up with the local organized crime; they have a very well developed and broad criminal economy. There are social networks for cyber criminals and tons of technical support sites for malware. Business is booming: it’s at least a $1B a year industry and growing every day. It’s very easy and very profitable to be a cyber criminal.

ITIC: You’ve been in the security business for 15 years now. How have the security threats changed and evolved?

SS: In the last 15 years we’ve seen five generations of threats. Today’s security hacks and attacks have evolved; they are not the work of amateurs. It used to be that teenaged hackers did it for the thrill or to make a name for themselves and get hired to work for a security firm. Ten or fifteen years ago, hacking was a means to an end. Today hacking is the end game. The hackers have gone pro. And the security threats are much more professional and stealth-like which makes detection more difficult. Many organizations and individuals don’t find out until after the fact and it’s damaged their networks. Back in the “good old days” circa 1995, a company’s worst case scenario was a DOS attack which caused the server to go down and applications to be unavailable. In 2011 – soon to be 2012 – the threats are much worse. Organizations are facing two types of damage. The first is stolen customer data, Intellectual Property, corporate designs etc. Once it’s stolen, highly sensitive data oftentimes ends up for sale to the highest bidder on criminals’ social media networks. The second, very pernicious threat is that hackers frequently install a stealthy Trojan/key logger and at regular intervals it will send the information e.g. accounting information to the hackers. They literally take control of the account and transfer out the money in small chunks usually $10K at a time. It’s then forwarded on to their “money mules” and organizations lose monies. Once a company has been the victim of a cyberheist, recovering the money, tracking and prosecuting the hackers is difficult, time consuming and expensive.

ITIC: How aware are companies of these threats and do they take them seriously?

SS: Every organization: the largest businesses, small Mom and Pop shops, academic institutions, non-profits and religious institutions are all at risk. Nothing is sacred and no one is safe. The large enterprises like banks and brokerage houses, usually have good proactive defenses in place to minimize risk, delay and thwart attacks and to alert them when an attempt to penetrate the perimeter or network occurs. Ironically, the biggest threat facing companies – particularly SMBs – is a false sense of security. Many small businesses, non-profits and churchesare operating under a serious misperception that they’re too small to be of interest to hackers and thus they won’t be targeted. The Fortune 500 firms know they’re targets and have relatively good defenses in place. But these small businesses often do lag behind a bit in security awareness training unless they’re forced by SOX or HIPPA regulations to do security awareness training because they get audited. Some organizations just do it perfunctorily to pass a required audit and that just won’t cut it.

ITIC: What’s your advice to businesses?

SS: If you are a corporate cyberheist victims are NOT insured. The FDIC does not insure corporate accounts; they insure personal accounts. So the banks and insurance companies won’t refund your money UNLESS you purchase specific cyberheist insurance policies. Otherwise you’re SOL (shit out of luck) – and if the theft is big enough, many SMBs could find themselves out of business. The hackers are also not confining themselves to SMBs – they attack non-profits, local and municipal governments and churches with equal impunity.

ITIC: What proactive measures should organizations take to protect their businesses?

SS: First make sure that you have good quality anti-malware and keep it up to date and have a good firewall and then make sure you perform good quality security awareness training. You have to constantly reinforce that they need to be tested – we recommend testing at least once a week. The weakest link in any organization will be the users. The security perimeter has been broken thanks to mobile and remote users. The network and the firewall used to be the perimeter but the consumerization of IT has changed that. The hackers are now professional. The spear fishing attacks are very sophisticated.

ITIC: What should organizations and individuals look for?

SS: This sounds mundane, but never open an attachment that you didn’t ask for or one that came from an unknown source.

Be suspicious of all your Emails, even those from so-called trusted sources and friends because their accounts may be spammed or hacked. This includes things like direct messages from people you know and are friends with on the various Social Media sites like Facebook, Twitter and Yahoo. Pay very close attention to how your Email looks e.g., be on the lookout for spelling and grammatical errors and missing elements or things that just don’t appear right.

ITIC: Do you have any last insider tidbits for our readers?

SS: Yes, be aware that currently there’s only one bank that insures business accounts from cyber criminals and cyberheists and that’s JP Morgan Chase.

URL: http://www.knowBe4.com

Based in Tampa Bay, FL.

Stu Sjouwerman Q&A: Security Read More »

Direct Edge Stock Exchange – Richard Hochron

Direct Edge Stock Exchange Uses Microsoft SQL Server 2008 Parallel Data Warehouse to Scale Trading

Business Profile: Direct Edge Stock Exchange

“Microsoft Parallel Data Warehouse is a real win for us. The combination of SQL Server 2008 R2 and the PDW appliance is extraordinarily powerful. Our stock exchange needs very high reliability, very high processing speeds, excellent security and ease of use. SQL Server 2008 R2 and PDW delivers. The deployment was as smooth and seamless as Microsoft promised. We’re purchasing something that scales into the hundreds of terabytes range.”

– Richard Hochron, Chief Technology Officer at
Direct Edge Stock Exchange in Jersey City, N.J.

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ITIC Survey Finds CRM Usage Soars Among SMBs, SMEs

Thanks to the 300 of you who took time out of your busy schedules to respond to the joint ITIC/GFI survey on customer relationship management and for OSF-Global in assisting us in composing the questions.

The survey results showed that nearly three-quarters – 74% — of companies are currently using a CRM solution and 57% of survey participants revealed that interest in CRM is increasing significantly. And perhaps most surprising, a 52% majority of survey respondents said they use more than 51% of their CRM solution’s functionality; of that number 18% utilize over 75% of CRM features.

CRM Usage Soars Among SMBs and SMEs

Customer relationship management (CRM) solutions long a staple in large enterprises are now also being widely embraced and deployed by small and mid-sized businesses to more efficiently track and manage businesses’ interactions with customers and partners. …

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