CDOs Are Reaching New Heights — and Quickly | MIT Sloan Management Review

Per a recent MIT Sloan Management Review, Chief Digital Officers, or CDOs are rapidly moving into CEO roles:

“…most CDOs work at companies connected closely to content. Mathison says 40% of CDOs are in advertising, another 15% are in publishing and the same at media companies. .. The biggest sector for other sorts of companies are non-profits, as well as government organizations.

Despite this concentration in content…there are CDOs in every industrial sector. The industries moving slowest to adopt the title are insurance, banking and pharmaceutical companies. Most American CDOs have profit-and-loss responsibilities and significant business experience…”

via CDOs Are Reaching New Heights — and Quickly | MIT Sloan Management Review.

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Why 2 new certifications for ITconnecter? (virtualization and innovation)

Before answering the question of “Why 2 new certifications for ITconnecter,” its important to paint a picture.

As ITconnecter and CrossWaves Ventures evolves, we continue to see evidence that technology has changed IT forever, and that IT has an opportunity to change and expand their role in conjunction.

“has an opportunity…” doesn’t mean that IT will benefit automagically; there needs to be an executable vision, executable in the short, mid and long terms.

The approach we have taken is one we believe every CIO in any mid-large size enterprise should take:

– understand how the internet, virtualization, the cloud and BYOD has led to the increasing importance of technology, not just IT, to every business, independent of industry

– take a leadership role in technology’s underlying pillars of data, process and integration (cloud and social)

– invest in learning about innovation, vertically, horizontally, B2C, B2B, IT technology, etc.

– openly embrace the move of IT from operator to broker of IT and invest in “the business of IT tools” from vendors such as VMWare (ITBM), Comsci, Apptio and even traditional vendors such as HP that are investing on products in this space.

Since these are our beliefs, these are also the reasons for the 2 new certifications, one in the vendor camp (e.g. VMWare) and one in the innovation camp (e.g. GIM Institute).  We’ll expand this list consistently, adding to our ITIL and Lean Six Sigma certs and to our participation in relevant organizations such as ITFMA and the TBM Council, all to continue to “eat our own dog food” on behalf of our IT leader clients.

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“Securing the Internet of Things: Is the IoT DoA?”, by Jason Bloomberg of ZapThink

Good article on security challenges associated with the Internet of Things.  While the article closes with personal opportunity, the article also highlights the importance of security in the technology, not just IT, realm.

The more involved an enterprise business is with security evolution and enhancements, the more likely they will be able to make or take advantage of security-related business opportunities, whether they view themselves in the security business today or not…..

BY: JASON BLOOMBERG | POSTED: NOVEMBER 7, 2013

“Your alarm clock jars you awake. You stumble to the kitchen, fire up your coffee maker, grab some milk from the fridge, and pour yourself a bowl of cereal. You turn down the thermostat before you head to your car. You park your sedan in your usual spot in the garage at work, and you enter your office building by waving your badge at the door. Finally, you drop into your chair and fire up your computer.

A mundane story, one millions of people trudge through every day with only minor variations. But here’s the question: how many Internet-connected devices did you interact with between opening your eyes and logging in? Let’s see: alarm clock, coffee maker, fridge, thermostat, your automobile, all the stop lights, traffic cameras, toll transceivers, and in-road traffic sensors on your commute, and finally your badge and the door. OK, maybe your household appliances aren’t on the Internet yet. Give them a few years.

Now ask yourself: how many of those net-connected doodads are secure? The answer: none of them. Every device on this list is woefully unprotected from various attacks, and to make matters worse, many of them might contain confidential information ripe for the picking. And if all that weren’t sufficiently disconcerting, the vendors of such miscellany aren’t particularly motivated to make them secure – even if they knew how to do it properly. Which they don’t. Nevertheless, we blindly forge ahead, building out the Internet of Things (IoT), as though the security issues will somehow resolve themselves. Just how worried should we be?

The Bad and the Ugly – but None of the Good

This tale of woe begins with Radio Frequency Identification (RFID) tags. These innocuous tags appear in everything from product packaging to airport tarmac equipment to passports to, yes, your security badge. And as you would expect from the tone of this ZapFlash, RFID tags are dead simple to hack

. They come in two flavors: passive and active. The passive ones need no power source; they simply respond when the right signal gets close enough to them. No encryption, no authentication, no nothing. Anyone with the right device (which you can easily obtain over the Internet, of course) can read your tag simply by getting their snooping device close enough to it. Have you ever walked down the street with your security badge, or through an airport with your passport? Has anybody ever passed within a few feet of you? Stupid questions, right?

So, how do the best RFID security minds recommend protecting your RFID tags from compromise? Put them in protective sleeves. And no, wrapping your passport in aluminum foil won’t do. You need a special Faraday cage sleeve. But even if you manage to keep your RFID tags in an effective sleeve, all a hacker has to do is wait till you take it out. Recommending a sleeve to protect the IoT from attack is about as effective as climbing under school desks was at surviving a Cold War nuke.

Surely the technology in our increasingly cyber-aware automobiles is more secure than your run of the mill RFID tag, right? Sorry, no. Today’s cars have fifty or more tiny computers called electronic control units that control all aspects of the vehicle’s function. These units communicate with each other via a Controller Area Network (CAN). As vehicle manufacturers increasingly provide Internet access to their autos, hackers can easily access the CAN remotely – and with it, all the functions of the car. Brakes. Steering. Engine. Everything down to the radio.

There are two primary modes of protection the car manufacturers are implementing to prevent hackers from using these weaknesses to steal cars, kill targeted individuals, or simply wreak havoc. First, CAN protocols are proprietary. And second, the manufacturers are keeping all the details secret.

Neither technique, of course, provides any true measure of security, asresearchers proved at a recent DefCon conference

. Secrets are virtually impossible to keep in today’s Facebooked world. Also keep in mind, any authorized repair shop will have a diagnostic machine that interfaces with the CAN. If a hacker doesn’t want to bother reverse engineering the proprietary protocol directly, they can simply get their hands one of those machines and hack that.

Why the IoT is so Hard to Secure

There are both business and technical reasons why the IoT is so difficult to secure. On the technical side, the core problem is that the tried-and-true technologies we use to secure traditional interactions with the Internet just don’t work well – if they work at all. To use Public Key Infrastructure (PKI) technology, for example, each endpoint must be able to store digital keys and run encryption and decryption algorithms, conduct sophisticated handshakes to establish secure SSL connections, etc. However, many IoT nodes like the passive RFID tags simply don’t have the electrical power, storage, or processing power necessary to tackle even the simplest of PKI tasks.

Secondly, a large part of the IoT approach involves machine-to-machine (M2M) communication. In other words, sensors and other IoT endpoints talk to each other, instead of talking to a server somewhere. If your smart thermostat tells your dishwasher when to run, that communication might be running over your home Wi-Fi or perhaps Bluetooth or some other local network protocol that doesn’t require traffic to actually go over the Internet. And not only does it go without saying that Wi-Fi and Bluetooth protocols are shockingly easy to hack, but how are the two communicating nodes supposed to know that the information coming from the other is authorized? Essentially, any kind of M2M interaction requires a certain level of trust, only we have no way of providing that trust in the first place, or revoking it should a breach occur. How will your dishwasher know someone has hacked your thermostat?

In fact, the two examples above provide special cases of a broader problem: theIoT gives us no way to control permissions

. Let’s say you figure it’s a good idea for said thermostat to Tweet certain information so it’s easy for you to monitor your home while you’re away. If a hacker compromises the thermostat, they automatically get your Twitter login – and you no longer have any way to control your Tweets.

The final challenge I’ll consider here (keeping in mind there are sure to be dozens of others) is the fact that devices on the Internet must have IP addresses – and in many cases, IoT sensors wouldn’t work properly behind firewalls. They must have public IP addresses that anyone can access. And if someone can access them, then someone will. Ever heard of Shodan

? It’s a tool for finding IP addresses for random devices, including baby monitors, Webcams, security systems, and all manner of other bric-a-brac. How would you like a hacker to compromise your baby monitor? It’s happened before, and it’ll happen again.

Scanning random IP addresses, however, is only practical for the familiar IPv4 space. As we move to IPv6, there will be so many possible addresses that scanning them at random will be much more difficult. This advantage, however, is weaker than you might think

. First, it simply presents an interesting challenge to enterprising hackers out there. How long will it take for a Shodan 2.0 to be IPv6 compatible? Secondly, IPv6 can actually make it more difficult for an organization with many IoT sensors to secure them (assuming they have any idea how to do so in the first place), because IPv6 makes it more difficult for an authorized party to scan for them as well. And if you don’t know what devices and sensors you have, you can’t control, manage, or secure them.

Such technical issues, of course, aren’t the whole story. On the business side, the problems are even more slippery. There is no agreement on how or even whether to address IoT security. Few countries have any regulation requiring companies to implement security

in their devices. And there’s no market pressure forcing such vendors to get their act together. We, the customers, have simply grown too complacent. If we won’t pay more for secure automobiles and refrigerators, then rest assured no company will bother to go through the trouble to secure them.

The ZapThink Take

You were hoping I had some slick, imaginative approach for solving these issues, right? Sorry to disappoint. But rather than throwing our collective hands in the air, dumping all our devices down the garbage chute, and moving to a cave on Borneo somewhere, we must realize that the only way we’ll ever solve this riddle is by taking an entirely different perspective on securing technology.

We cannot impose security from the outside onto each sensor. It’s simply too easy for hackers to get a hold of them and defeat whatever mechanism we’ve put in place. Instead, the sensors themselves must be inherently secure. Only when a hacker can break open a sensor, reverse engineer it as well as the communication protocols it uses, and still not be able to hack into it or use it to hack into something else will we finally be able to sleep at night. Solve this challenge and I promise you, you’ll be very, very rich.”

 

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“bird in hand*” notes from 2013 Shopper Reward Survey #Parago

From Parago’s most recent Shopper Reward Survey, there are findings which should have significant impact on how marketing spending is allocated in the areas of prepaid cards, digital rewards, discounts and extended duration value offers:

  • 2/3 of all consumers still prefer physical prepaid gift cards to digital rewards (e.g. Mastercard/Visa/Discover card vs Amazon gift code)
    • however, for households with $200K+ income, an Amazon gift code is preferred
  • “bricks and mortar” retailer-specific cards (e.g. WalMart, Target, et al) are much less preferred than either Mastercard/Visa/Discover cards or Amazon gift codes
    • the same is true for brand-specific cards  (e.g. iTunes)
  • the higher the reward value, the greater the preference
    • this is true even for lower-value prepaid gift card as compared to instant discount or extended duration value offers of significantly greater value
      • survey examples ranged from 25% to 600%!
    • this is less true for a “proprietary product” consumable
      • single-cup coffee-maker example
    • also less true for lodging industry
      • marketing mix ramifications re:need to understand overall unit-costing, factored for “lost opportunity” costs

View the full * “bird in hand beats two in the bush” report below or at www.parago.com:

Download (PDF, 6.45MB)

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Microsoft Price Increases: Here it Comes Again! | NET(net), Inc.

Per Microsoft Price Increases: Here it Comes Again! | NET(net), Inc., Microsoft cost to the enterprise has been fairly consistent in increasing annually.

Of  Net(net)’s recommendations in the article, I’d like to add a bit more depth to this one:

“1.  Review your overall infrastructure platform plan including Windows Server (not only Datacenter) and its competitors, as well as your desktop virtualization plans and competitors to RDS.”

The monthly cost delta between MS-Office and alternatives, both commercial (e.g. Google Apps) and open-source (Apache OpenOffice or LibreOffice) is not decreasing.  One F500 CIO mentioned their internal analysis showed a 4.5X higher cost, per month, per desktop, for MS-Office than an alternative.  If you then add on Microsoft’s VDA tax for using the desktop OS instead of alternatives (e.g. browsers or even Linux) the 4.5X becomes 6.5X.

Think of it….as much as 6.5x greater cost per month per desktop to use Microsoft vs other office productivity solutions….

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IDC tabs ‘Specialized Threat Analysis and Protection’ as new security segment – Network World

“Products that can detect stealthy malware-based attacks aimed at cyber-espionage and data exfiltration”are being packaged as Specialized Threat Analysis and Protection, or STAP, by research firm IDC.

STAP per IDC

Per their recent article, IDC tabs ‘Specialized Threat Analysis and Protection’ as new security segment – Network World, IDC sees this security sub-segment growing from $200M to $1.17B over the next four years.

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Fujitsu SW Integrates/Manages 30 Cloud Services

Integration Aggravation to Disperse in the Clouds summarizes Fujitsu’s recent announcement of their platform, which claims to provide a unified view into 30+ cloud services…

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IBM Cloud Survey cites business benefits from pacesetters (e.g. early adopters)

From IBM’s recent cloud survey (http://public.dhe.ibm.com/common/ssi/ecm/en/ciw03086usen/CIW03086USEN.PDF), there were the following highlights:

  • “business leaders of all stripes – Finance, Sales & Marketing, Product Development and more – are becoming increasingly focused on the business value cloud provides. Over the next three years, cloud’s strategic importance to business users is expected to double from 34 percent to 72 percent, even surpassing their IT counterparts at 58 percent.”
  • CAGR of both revenue and profit, between 2009-2012, is significantly higher for “Pacesetters,” those who have already deployed cloud on a wide scale and “”Chasers,” who are still in early stages of adoption (revenue 85% higher, profit 135% higher)

  • The two areas where Pacesetters achieve much more competitive differentiation through the cloud than Chasers are in “reinventing customer relationships” and in big data analytical insights (2x+).
  • Along with having an enterprise-wide cloud strategy, Pacesetters prioritize open-source cloud platforms nearly 3x as much as do Chasers.

The full report can be viewed below or via the first link in this blog post.

Download (PDF, 687KB)

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Android Growth Drives Another Strong Quarter for WW Tablet Market, IDC

From Android Growth Drives Another Strong Quarter for the Worldwide Tablet Market, According to IDC – prUS24420613, a few quick 3Q13 stats:

  • 47.6M tablets shipped (+7% QoQ, +36.7% 3Q13 over 3Q12)
  • iPad down QoQ, only +1% 3Q13 over 3Q12), mkt share now at lowest of 29.6%….but iPad Air could help rebound 4Q13

Top Five Tablet Vendors, Shipments, and Market Share, Third Quarter 2013 (Shipments in millions) 

Vendor

3Q13 Unit Shipments

3Q13 Market Share

3Q12 Unit Shipments

3Q12 Market Share

Year-over-Year Growth

Apple

14.1

29.6%

14.0

40.2%

0.6%

Samsung

9.7

20.4%

4.3

12.4%

123.0%

Asus

3.5

7.4%

2.3

6.6%

53.9%

Lenovo

2.3

4.8%

0.4

1.1%

420.7%

Acer

1.2

2.5%

0.3

0.9%

346.3%

Others

16.8

35.3%

13.5

38.8%

25.0%

Total

47.6

100.0%

34.8

100.0%

36.7%

 

 

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NTT Buying Virtela for Cloud Services – Bloomberg

Via NTT Communications Said to Buy Virtela for Cloud Services – Bloomberg

For those not familiar with Virtela, they were very early in the managed network game; my first Virtela network was back in 2002/3 for a large electrical wholesaler entering the US market.  With NetScreen as their managed, secured, end-point device, their ease of ramp-up and the options they provided were solid even back then.

Despite how small-scale this purchase is compared to Softbank’s buy of Sprint, Virtela has enough technology excellence to really help NTT continue their growth outside of Japan.  Coupling Virtela with NTT Data (the old Keane) should be a potent combination, if they can execute….worth exploring for their cloud and SDN savvy

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