Newsletter - July 2006

Microsoft fined by EU

The computer giants have been fined by the European Commission for €280.5 million ($357m, £194m) for failing to comply with an anti- competition ruling made in March 2004. At the time Microsoft were ordered to share technical information about its operating system so competitors could write programmes that would run smoothly on the popular Windows system. The EU also told Microsoft to produce a version of Windows XP without it’s built in Media Player.

The large fine comes as a punishment for not providing the technical information in a timely manner. Microsoft will be fined another 3 million euros a day if they haven’t passed on the information by the end of this month.

Microsoft to discontinue Windows 98 and Millennium Edition

Microsoft has announced they are going to stop customer support for their Windows 98 and Millennium Edition of the software from Tuesday 18th July as part of the software’s product life cycle. Any security updates will also come to an end. In respect to this move the software giants are urging any small businesses or home PC users to upgrade to the more secure Windows XP. They’ve also warned that anyone using the older systems are exposing themselves to security risks. (The BBC recently reported high-tech crime gangs in Eastern Europe specialised in creating viruses that specifically targeted weaknesses in Windows 98. Concerns are now growing that these gangs will increase attacks now that security and software updates have been discontinued).

It is estimated that 70 million users of Windows 98 will no longer be able to receive telephone technical and customer support. Information will be available on Microsoft’s ‘Support Product Solution Centre’ website for those who need it.

PowerPoint virus

The popular PowerPoint programme has a virus attached to it which comes as an attachment from one of Google’s Gmail accounts. If the mail is opened it installs keylogging software on the computer that records everything typed on the infected machine. It will also open a backdoor to the computer which could allow the virus creators to install more malicious programmes. After the machine has been compromised, a blank version of the presentation is installed in the computer to hide evidence that it had been taken over.

The bug has been found in PowerPoint version 2000, 2002 and 2003. So far it has only affected relatively few people. Users have been warned to take care not to open up or save any presentations that have been received from Gmail because it could take Microsoft several weeks to produce a patch to protect this security loophole. Microsoft usually provide security updates on the second Tuesday of every month and news of this virus came a day after the last security update was sent out.

Security breaches for UK firms

Security among IT, media and telecoms firms is fast becoming a big issue. Recent studies have found that over 50% of companies within this industry have breached security. Within those who have reportedly breached security, 1/3 has resulted in financial losses.

The big issue now for firms is being attacked internally. The availability of Wi-Fi hotspots, 3G and HSDPA broadband services and the increasing popularity of portable media devices such as memory cards (can store large amounts of confidential data), which can then be easily transferred out of the company’s HQ’s. Human factor is also another big issue in breaching internal security.

Companies who have outsourced externally (either in the UK or abroad) have also been in similar situations where internal staff have breached security. In a statement made by the Information Commissioner’s Office (ICO), it said, “The Data Protection Act requires you to take appropriate technical and organisational measures to protect the personal information you process whether you process it yourself or whether someone else does it for you.” The companies will be liable for any security breaches regardless of whether the actual breach took place at the HQ or at an external/ third party company. Not only do the companies suffer from financial losses from these security breaches but also have intangible factors to deal with, such as damage to reputation, customer dissatisfaction and loss of productivity, which can be harder to recover.

Broadband pricing war heating up

The broadband market is fast becoming a very competitive market with Orange (the mobile phone operator who recently took over Wanadoo) and Sky (TV operator) both offering “free” broadband. Orange’s ‘free’ broadband is available to their pay monthly mobile customers. Anyone who pays line rental of £30 or more will be able to receive ‘free’ broadband of up to 8mg. The ‘free’ broadband is subject to availability depending on where you live; whether or not you have a BT landline and the mobile tariff that you have chosen (only eligible tariffs will allow you to take advantage of this offer).

Sky is entering the broadband market as newcomers and they too are offering ‘free’ broadband to their existing customers starting from next month. The ‘free’ offer called the Base package consists of download speeds of 2Mb, 2GB monthly limit and free subscription. There are £40 connection and £50 installation fees, as well as having a BT landline (unfortunately the service is not available for those who have NTL or Telewest lines). If you’re interested in any of these special offers be sure to read the terms and conditions before signing on the dotted line, and remember, none of these offers are available for business users.