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A Power Plant Hack That Anybody Could Use

The night before the start of this week's Black Hat hacker conference here in Las Vegas, security researcher Dillon Beresford gave a demonstration to a small audience in his room at Caesar's Palace. The topic: how a hacker could take over the Siemens S7 computers that are used to control engines, machines and turbines in tens of thousands of industrial facilities.

It was a preview of the talk he was set to give Wednesday, and Beresford seemed both nervous and relieved to be finally talking to the handful of reporters and industry and government officials in the room. A few months ago it wasn't clear when or if he'd ever be able to go public with his research. Concerned that his research could be misused, he pulled out of an earlier conference to give Siemens more time to fix the problems he'd uncovered. Even now, after months of work with Siemens and the U.S. Department of Homeland Security, coordinating patch after patch for many of the bugs he's found, Beresford can't say everything he knows.

But clearly, he knows quite a lot. The question is, how much will he make public?

A look at the Siemens S7 PLCs that NSS Labs' Dillon Beresford hacked.

The NSS Labs researcher said he's found ways to bypass the S7's security measures and read and write data into the computer's memory -- even when the system has password protection enabled. He can steal sensitive information from the systems, he said. And on one model, the S7 300, he found a command shell, apparently left in the system's firmware by Siemens engineers, that he can connect to and use to run commands on the system.

After poking around for a bit he discovered a hard-coded username and password that allowed him access to a Unix-like shell program on the systems, where he can run his own commands: Username: basisk; password: basisk.

This shell is a "back door" to the system that could be misused by an attacker, Beresford said.

He also discovered dancing monkeys. This goofy graphic of four dancing monkeys was apparently an Easter egg -- a software developer's version of graffiti, left for other geeks to discover -- stuck in the S7 300's firmware.

NSS Labs researcher found this image in the firmware of a Siemens S7 300 PLC. It reads, 'Not hearing, not working, just...'

The demo wasn't much to look at. The S7s are like futuristic grey shoeboxes with green LED lights on them. Smoking a cigarette, Beresford would type into his laptop and one by one, the machines would turn off. But considering that each one of those machines could be running a nuclear centrifuge or an elevator, the demonstration held everyone's attention.

The government official in the room Tuesday night -- a contractor from the U.S. Department of Homeland Security's Industrial Control Systems Cyber Emergency Response Team -- didn't want to be quoted. Neither did Tim Roxey, a staffer with the North American Electric Reliability Corp., the nonprofit corporation chartered with helping to keep the U.S. supply of electricity online.

Clearly both groups are interested in Beresford's work. The S7 300 systems on which Beresford found the back door and dancing monkeys are the same computers that were targeted by the Stuxnet worm, thought to have destroyed centrifuges at Iran's Natanz nuclear reactor.

For decades, makers of these industrial computer systems -- companies such as Siemens, Rockwell Automation and Honeywell International -- lived in a bubble. They built computer systems that were adapted by electrical engineers for the factory floor. It used to be that these systems operated entirely on their own, disconnected from the rest of the networked world, but gradually they've been networked with Windows computers. They are supposed to be run on networks that are physically separate from the rest of the world, but these networks can have misconfigured routers, and every time a consultant plugs a laptop into them, it's another opportunity for a virus to spread.

The problem is that these industrial systems were not built with security in mind, according to Dale Peterson, CEO of security consultancy Digital Bond. Industrial systems security experts like Peterson have known for at least 10 years that these kind of problems were coming, but not enough has been done. "We've made progress in a lot of areas, but we haven't made progress on these field devices," Peterson said.

He and other security experts say Siemens is hardly alone; that all industrial control systems suffer from the kinds of bugs that Beresford discovered.

The industry could add strong authentication control to machines like the Siemens S7, so they only run code that's given to them by trusted sources. But in a world where rebooting a computer means taking a power plant offline for a day, that's not easily done. "No one in the industry wanted to do this because of the possible consequences," Peterson said.

On the other hand, as Stuxnet has shown, the risks of a cyber-attack on these industrial systems are very real. And malicious programs wind up on factory floors all the time.

In February 2011, the two-year-old Conficker worm infected systems at a Brazilian power plant, according to Marcelo Branquinho, executive director with TI Safe, the consulting company that has been working on fixing the problem these past few months. Engineers would clean up the infection only to find it reappear on the network, most likely spread there by an infected machine that they had missed. "This is not the first Conficker infection we've seen in Brazilian automation plants," he said in an e-mail interview.

Branquinho wouldn't name the power plant, but the infection was clearly disrupting operations. The plant's management systems were freezing up and not displaying data from the field. This forced operators to control their systems the same way they did before computers -- using radios to communicate with each other.

If those infected Conficker machines had contained the type of software that Beresford has written, things would have been much worse.

This isn't the first time that researchers have released code relating to industrial systems, but past releases have focused on the Windows-based management consoles that these systems use -- not the control systems themselves. And the fact that Beresford has hacked the S7 300 -- widely used in the energy sector -- puts his work in a category by itself.

In fact, Beresford isn't sure when he's going to make the software he's written public. There are 15 modules, small programs he's written for the open-source Metasploit hacking toolkit, but he wants to give Siemens' customers time to patch their systems before he releases the code. He said that six months might be an appropriate window.

Once his code is available, anyone could use it. But Beresford believes that he's only making public what others have secretly known for a long time.

Digital Bond's Peterson says that releasing the code might be what it takes to push the industry to finally fix its security problems. "At this point, I'm like, let's give it a shot," he said. "I don't think he's telling the nasty people anything they don't already know."

Ralph Langner, one of the researchers who helped crack the Stuxnet mystery, thinks that Beresford should never release his code. "Dillon did not ask me for advice," he said. "But the advice I would give him is, 'Don't ever release the Metasploit code, because this is dynamite.'"

The Metasploit modules would make it easy for a less-skilled hacker to build software that could disrupt a power plant. And even if Siemens has addressed all of the underlying issues, it will be years before the patches are installed. One day of downtime at a power plant can easily cost the operator US$1 million, Langner said. "Don't assume that a power plant operator will say, 'I will shut my plant down for a day to install the damned patch,'" he said.

It turns out that Langner is the guy who inspired Beresford to look into Siemens systems in the first place. Because of the apparent reconnaissance work and sophisticated PLC programming involved in Stuxnet, Langner believes that only a few organizations have the technical know-how to pull something like this off.

Beresford wanted to prove that industrial hacking could be done on the cheap too. His company kicked in $20,000 to buy the Siemens systems, but Beresford did most of the work from his bedroom in a couple of weeks. "It's not just the spooks who have these capabilities," he said when he finally gave this Black Hat presentation. "Average guys sitting in their basements can pull this off."

Robert McMillan covers computer security and general technology breaking news for The IDG News Service. Follow Robert on Twitter at @bobmcmillan. Robert's e-mail address is robert_mcmillan@idg.com


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Spam King Sanford Wallace Indicted for Facebook Spam

Notorious spam king Sanford Wallace is facing federal fraud charges for allegedly breaking into Facebook accounts and sending 27 million spam messages in 2008 and 2009.

wallace spam facebookSanford Wallace

Wallace, 43, allegedly used a phishing attack to steal usernames and passwords from victims and then used the stolen credentials to post spam to victims walls, the U.S. Department of Justice said. Wallace allegedly made money from the scam by driving Web traffic to affiliate marketing companies, who pay their members by the number of clicks they can deliver to websites.

The charges are outlined in an indictment, filed July 6 but made public Thursday after Wallace turned himself in to federal authorities.

Wallace gained fame as one of spam's most vocal defenders back in the 1990s and he has faced numerous civil actions over his activities, including lawsuits from MySpace and the U.S. Federal Trade Commission.

However this is the first time he's facing criminal charges.

Wallace has also been sued by Facebook, which won a US$711 million civil judgment against him. As part of that judgment, he was banned from Facebook, and the criminal indictment accuses Wallace of contempt of court for allegedly logging onto the social network during an April 2009 Virgin Airlines flight from Las Vegas to New York. Wallace also allegedly set up a Facebook profile in January of this year under the user name David Sinful-Saturdays Fredericks.

"We applaud the efforts of the U.S. Attorney's Office and the FBI to bring spammers to justice," Facebook said in an e-mailed statement. "Now Wallace also faces serious jail time for this illegal conduct. We will continue to pursue and support both civil and criminal consequences for spammers or others who attempt to harm Facebook or the people who use our service."

Wallace could get more than 16 years in prison, if convicted.

He was released Thursday on a $100,000 bond. His next appearance is set for Aug. 22 at the U.S. District Court for the Northern District of California in San Jose, California.

Robert McMillan covers computer security and general technology breaking news for The IDG News Service. Follow Robert on Twitter at @bobmcmillan. Robert's e-mail address is robert_mcmillan@idg.com


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Startup Aims to Get the Poor Online With Phone Numbers

U.K. startup Movirtu plans to help 3 million or more people in poor countries use mobile services by giving them personal phone numbers, not phones.

Working with a U.N.-affiliated initiative called Business Call to Action (BCtA), Movirtu will offer the numbers, which it calls mobile identities, through commercial carriers in developing countries in Africa and South Asia. People in those countries who typically borrow phones from others will be able to log into the carrier's network and use their own prepaid minutes and bits of data.

The service is called Cloud Phone, though it operates within a carrier's own infrastructure rather than on the Internet as a classic cloud service would. Having a personal mobile identity can save users money in two ways, according to Ramona Liberoff, executive vice president of marketing, strategy and planning at Movirtu. First, they can use mobile services without buying a phone, which is a luxury even at US$15 or $20 for people making $1 or $2 per day.

Second, the cost of prepaid service from a carrier typically is less than what consumers in those countries pay someone to borrow a phone, she said. Though it's customary in many of these countries to lend a phone to someone in need, the borrower is also expected to pay the lender for the usage. The average savings from using regular prepaid service instead is estimated at about $60 per year, Liberoff said.

The service will help people to use mobile banking, insurance and farming assistance services as well as make phone calls, Liberoff said. Some of these services currently can only be delivered to individuals and not to someone sharing a phone. Personal mobile identities could be a boon to NGOs (non-governmental organizations) that want to use mobile technology.

"In many cases, there are great NGO programs that can't reach 80 percent of their base," because those people don't have their own phones, Liberoff said.

Movirtu has committed to finding and keeping at least 3 million users of its service in Africa and South Asia as part of BCtA, an initiative by two U.N. agencies and a group of non-governmental organizations that is designed to leverage private enterprise to solve major global problems. BCtA provides leadership, information-sharing and advice to companies that participate in its program.

Movirtu expects about 75 percent of its users to be women, because women in Africa and South Asia are statistically far less likely than men to have their own phones, Liberoff said. In some cases, this is by choice, because having a phone can make women targets by revealing their wealth, she said.

Users can get a mobile identity by going to one of the mobile carrier's shops. When they borrow a phone, they enter a shortcode for the Movirtu service and then punch in their individual phone number and a personal identification number. After that, the temporary user can access all the services available through the phone, as well as a personal carrier home page where they can manage and top up their prepaid account, Liberoff said. The system works on any GSM (Global System for Mobile Communications) phone, using USSD (Unstructured Supplementary Service Data), a GSM protocol for communicating with a service provider's computers.

The company is piloting the service in the island nation of Madagascar, off the eastern coast of Africa. Through local carrier Airtel, the service was made available throughout the island starting on Monday. Madagascar is a perfect market for Movirtu, because Airtel has built an extensive network but many people in the country can't afford to buy a phone, Liberoff said.

"It's got lots of great network and very few users," she said.

Movirtu plans launches in at least 12 markets in Africa and South Asia by early 2013, reaching at least 50 million potential users. The two regions were chosen because they are home to about 1 billion of the 1.3 billion people in the world who rely on borrowed phones, Liberoff said.

Movirtu's customers are the carriers, which can use the personal mobile identities as an avenue to sell prepaid service, Liberoff said. The company isn't donating anything for the BCtA initiative, only making the commitment to bring its service to a certain number of people in the two regions, she said. Providing mobile identities in the developing world is Movirtu's primary business model. There are also some potential uses for the technology in the developed world, such as an alternative to traditional international roaming mechanisms, Liberoff said.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com


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Chinese Hackers Blamed for Database Theft

Hackers have stolen the personal data of 35 million users of the South Korean social network Cyworld and search engine Nate, the company that runs them, SK Communications, has admitted.

The country's regulator, the Korea Communications Commission, said in an official statement that SK Telecom had traced the attack to IP addresses in China, and involved the theft of phone numbers, e-mail addresses, and encrypted data such as passwords and 'resident registration' numbers of users of the service.

Cyworld is a domestic competitor to foreign services such as Facebook and Twitter, while Nate has a more Korean flavor in which users use avatars to inhabit to virtual houses, and share photos and videos from smartphones.

Assuming the most sensitive data has been taken in its encrypted form, the scope of the attack for the services is likely to be low. Users will be asked to reset those credentials. Access to the services is also free which means no financial data will have been taken. (See also "Top 5 Potential Cyber-Enemies for the United States.")

However, as with the Sony data breach from earlier this year, the main worry is that the data theft will fuel a rise in spamming, phishing and social engineering attacks.

South Korea and it companies are a regular target for attacks, and China and neighbour North Korea are usually blamed. What stands out in the latest attack is once again its size and scope. The entire user database seems ot have been compromised.

"It's too early to say whether this attack is politically motivated or merely an attempt to steal personal information for financial gain. However it's now becoming increasingly difficult to differentiate between attacks on military, communications, financial, civilian or critical infrastructure targets," said Mark Darvill of security company AEP Networks.


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Fusion-io to Buy IO Turbine to Reach Virtualized Servers

Flash storage vendor Fusion-io has agreed to buy IO Turbine for up to US$95 million to extend its on-server cache products to virtualized environments.

IO Turbine provides software that allows cache storage on servers to be shared across multiple virtual machines. The software will complement Fusion-io's flash products, which use solid-state storage media as a cache for heavily used data in order to minimize the amount of data that has to travel over storage networks. Fusion-io's components have so far been limited to use with data-intensive applications in non-virtualized environments, Fusion-io Chairman and CEO David Flynn said Thursday.

"It doubles the addressable market for server-attached flash," Flynn said. "Now, there's not an application out there that can't benefit from Fusion-io."

Fusion-io will pay as much as $95 million in cash and stock for IO Turbine, subject to purchase price adjustments, with the cash portion not to exceed $35 million. The deal is expected to close by the end of this month. Fusion-io, based in Salt Lake City, will add about 20 employees from IO Turbine to its engineering team and about five other employees across the rest of the company. IO Turbine is based in San Jose, California.

It's a hefty purchase for Fusion-io, which went public in June, raising $218.9 million. But it should help the company tap into one of the biggest trends in enterprise computing and could help to expand use of the data acceleration technique that Fusion-io pioneered. At the same time, competition is starting to heat up in this category. Also on Thursday, SSD (solid-state disk) vendor STEC announced server-attached flash products and a related software platform that it said can be used with any vendor's SSD. On Tuesday, OCZ introduced its latest line of server-attached flash components.

Fusion-io's Flynn downplayed the significance of STEC's introduction, saying that Fusion-io's products benefit from vertical integration of software, hardware and other elements. The effect is similar to that achieved by Apple, he said. Apple co-founder Steve Wozniak is chief scientist and a board member at Fusion-io.

In its first quarterly financial report since going public, Fusion-io reported revenue of $71.7 million in its fiscal fourth quarter ended June 30, up 556 percent from $10.9 million a year earlier. Net income was $5.8 million or $0.06 per share, compared with a net loss of $11.9 million or $1.00 per share a year earlier. For the current quarter, the company forecast revenue of $60 million to $65 million, down from the previous quarter because of the timing of a few large deals, Flynn said. The latest forecast was adjusted up from the company's earlier estimate for the quarter, he said.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com


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Computers That You Can Wear

The future of wearable computingIt’s an exciting time for the wearable-computing industry. Venture capitalist Marc Andreessen declared in a recent interview that wearable computers were the next big thing for Silicon Valley, and the past few months have seen a flurry of new product announcements in the arena.

A device that records everything you see for later playback, a bracelet that comfortably and discreetly monitors your health, Dick Tracy’s watch phone--these devices aren’t just coming soon, they’re here.

WIMM's prototype Android watchWIMM's prototype Android watchFor instance, WIMM Labs announced just this week a new line of Android-powered devices small enough to fit on your wrist but powerful enough to help you keep track of your calendar, the weather, and more. As our own Ed Oswald was quick to point out, however, we’ve had the technology for these kinds of devices for years. Microsoft’s similar SPOT watch launched way back in 2003.

Wearable computing has already become part of our lives. What else is on the way? Travis Bogard, vice president of product management and strategy for Jawbone, says that the next few years should see wearable computing expand to new areas as consumers become more comfortable with the idea.

Jawbone is best known for its line of Bluetooth headsets, but recently it announced Up, a bracelet that will launch by the end of the year. The discreet device will keep tabs on what you eat and how you sleep, and it will monitor your movement to help you see how much exercise you get. You’ll be able to stay on top of all that information via a phone app that lets you check your data throughout the day.

Jawbone's new Up health monitorJawbone's new Up health monitor

As exotic as these devices may seem, in many ways they’re just a natural extension of a wearable-computing lifestyle that has already found adherents. Over 3 million runners currently use the Nike+iPod system to keep track of their exercise. The small Nike+ sensor, which costs $20, fits into the heel of a running shoe and records how far and how strenuously you run. The device, coupled with an attractive Web interface, has helped runners log over 420 million miles' worth of exercise since it debuted in 2006.

The Nike+ sensorThe Nike+ sensorThe Nike+ system is just the tip of the iceberg for the wearable-health industry. For several years, companies such as BodyMedia, with its $180 FIT armband, and Apex Fitness, with the $200 BodyBugg system, have offered devices that can monitor how many calories you burn during the day and, with the help of an online food journal, help you lose weight.

What’s Next?

The next step for wearable computing may be a focus on the design of wearable-computing devices. Traditionally, wearable computing has valued function over form--but with smaller and more comfortable devices such as the Up and the Nike+ on the market, that’s changing. Jawbone's Travis Bogard says the end goal is to take wearable computing from a novelty to an almost invisible part of our daily lives. “You want to be able to stay connected with all that information, and you want to do it in a way that can get onto the body in a seamless way,” Bogard says.

Jawbone has some experience in that area. From the very beginning, the company has seen its Bluetooth headsets as wearable computers. “In a world where you’re out there mobile and moving around, in that mobile world, the reality is that we use our hands and eyes to navigate,” Bogard says.

Some wearable-computing concepts obstruct the user's vision with complicated overlays, or occupy the user's hands with miniature keyboards. Such designs keep users from interacting with the world normally. Bogard says Jawbone thinks of its headphones as a solution to this problem. “Audio is interesting because it doesn’t use up those resources,” he says. And freeing people to use their eyes and hands normally is “a key element of interacting with computing without having to be so physically engaged with it.”

Bogard argues that every time you put on a Bluetooth headset, you’re already taking part in the wearable-computing revolution. The experience is just so commonplace, and so comfortable, that we don’t even notice it anymore.

But for Bogard, at least, that isn’t just a side effect of good design--it’s the goal. Bogard believes good design should be invisible to the end user, and only when it becomes a natural extension of ourselves will the technology really take off.

Wearable Computing’s History

That approach is a far cry from the common vision of the wearable computer in the public imagination. Though some experts define wearable computing so broadly as to include the pocket watch, the idea--as it is commonly understood today--was born in the early 1980s as academics created complicated proof-of-concept rigs that covered the whole body.

Though the early experiments stretched the definition of "portable" (an early model by wearable-computing pioneer Steve Mann had to be carried around in a backpack), the efforts also helped to shape the public perception of the wearable computer. To most people, the term usually refers to an extensive rig that looks, frankly, a little embarrassing. These systems have more in common with the Borg from Star Trek than with a Bluetooth headset.

The development of Steve Mann's wearable computing devicesThe development of Steve Mann's wearable computing devices

Of course, even experimental systems have become smaller and less noticeable over the years. In 1994, Steve Mann created a new wearable-computing system and began an ambitious project to transmit his whole life, live, for two years. By then his system was a rather bulky series of boxes that hung off his belt. After the experiment ended, Mann slimmed his system down even more. By the late 1990s, his rig consisted of a particularly large pair of sunglasses attached to a single small box hooked onto his belt.

The Looxie 2 cameraThe Looxie 2 cameraToday the ability to record everything you see is available to the average consumer: The $200 Looxcie 2, a small camera about the size of a Bluetooth headset, fits over your ear and lets you record up to 10 hours of POV footage that you can download to your computer for a daily log of your activities.

As computing technology continues to get smaller and more powerful, the possibilities for wearable computing can only expand. Travis Bogard likens the state of the industry to that of the personal computer in the late 1980s. Now that wearable technology is such an integral part of our lives, we need to explore what exactly these new portable computers can do.

Although the possibilities for the industry are exciting, the most fascinating thing about the wearable-computing future may be that it has already arrived.

For more wearable computing, past and present, try our slideshow on the history of wearable computers.


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Healthcare Industry Leads Market in IT Hiring

Flush with federal funds and under the gun of federal regulatory deadlines, the healthcare industry is leading the market in IT jobs creation, according to the U.S. Bureau of Labor Statistics job placement services.

medicalThe bureau indicated that IT jobs in healthcare are expected to grow by 20% annually through 2018, "much faster than average." There are currently 176,090 healthcare IT jobs, according to the agency.

Since November 2009, healthcare IT positions have increased 67%, according to online job search engine SimplyHired.com, which lists 7,200 open healthcare IT positions out of 4.9 million jobs on its website.

Leading the pack from a percentage of increase perspective are CIO and CTO positions, according to Dion Lim, CEO of SimplyHired.com. Since 2009, CIO positions in the healthcare field have increased 101% (more than 200 current job listings) and chief technology officer positions have increased 127% (about 100 job listings).

"My experience has been that CIOs from other industries are being hired into healthcare," said Robert Booz, a vice president and distinguished analyst with market research firm Gartner. "People who were in retail banking or manufacturing are being brought into the healthcare world to bring their lessons learned from other industries."

Booz said CIOs and CTOs are given the responsibility of being agents of change, using the lessons learned in other industries to bring the healthcare industry up to speed. Healthcare has been a slow follower in IT adoption, but today is being driven by federal regulations requiring it to roll out electronic health records (EHRs) and to implement best practices in care through standardized medicine.

Among these regulations, the federal government is requiring a changeover from the current ICD-9 medical coding system to ICD-10 by Oct. 1, 2013. The effort has been under way since 2008, yet most hospitals have not begun the changeover, according to the American Hospital Association.

ICD-10 adds about 68,000 new codes that describe medical conditions and treatments, and will affect databases and EHRs, billing systems, reporting packages, and other decision-making and analytical systems. The changeover will require major upgrades or the replacement of current IT systems.

In addition to ICD-10, by 2012, healthcare providers must upgrade from the current version of the Health Insurance Portability and Accountability Act (HIPPA) to the HIPAA 5010 standards, which address new rules for claims management systems, including transaction uniformity and the streamlining of reimbursement transactions.

IT administrators

Jobs in healthcare IT administration are also seeing strong growth, according to the SimplyHired search engine. Since 2009, database admin jobs have grown by 94% (400+ jobs); network admin positions have grown by 64% (100+ jobs); sys admin jobs have increased 43% (about 100 jobs), and storage admin positions have grown by 37% (about 100 jobs).

increaseIn terms of sheer numbers of positions, developers lead the pack with more than 6,000 job listings, or a 65% increase since 2009, followed by system analysts with more than 2,000 jobs, or a 35% increase.

"Healthcare has been one of the highest performing areas for jobs creation pre recession, recession and post recession," Lim said.

By comparison, Lim said other leading markets for jobs creation have been the automotive industry at 60% and the financial services industry, with 34% growth over the past year.

The Bureau of Labor Statistics states on its website that through 2018, employment of medical records and health information technicians will lead the pack in healthcare IT job growth.

"In addition, with the increasing use of electronic health records, more technicians will be needed to complete the new responsibilities associated with electronic data management," the agency stated.

Specialists are the most highly sought

This year alone, healthcare IT spending is expected to reach $40 billion, according to a study from market research firm RNCOS.

The Affordable Care Act, passed last year, is expected to drive an 8.3% growth in healthcare spending by 2014, according to the health policy journal Health Affairs.

Driving much of the spending increase is the Health Information Technology for Economic and Clinical Health (HITECH) Act, enacted as part of the American Recovery and Reinvestment Act of 2009. The HITECH Act requires hospitals and physician practices to roll out and prove the meaningful use, a set of specifications and certification criteria for EHRs, by 2015 or face penalties.

An estimated 50,000 health IT employees are needed for the industry to meet these regulatory deadlines, according to Eric Marx, vice president of Health Care IT for Modis IT Staffing, a job placement agency with locations in 28 states.

The federal government has spent $144 million to set up IT worker training at more than 80 U.S. community colleges and universities to help fill the employment gap.

A significant part of the training will be for staffers at 60 regional extension centers (REC), the public-private partnerships that will eventually assist in the deployment of EMR systems at rural hospitals and physician practices with 10 or fewer doctors.

"The graduates from these programs aren't ready for primetime yet, but will have the needed experience starting in 2013," Marx said.

However, there is a significant disparity between the gross need for health IT employees and the number of qualified professionals able to meet requirements, Marx said. Modis' clients have struggled to find applicants who are not only technically proficient, but also experienced in the clinical health care environment.

"I'd compare the IT job situation in healthcare to the dot-com era or Y2K. There's a tremendous amount of demand for workers, but with a very specialized skill set," Marx said.

Marx said his hospitals and physician practice clients are seeking workers with vendor specific skills and experience in implementing EHR systems. For example, IT workers are needed who know how to deploy and run EHR systems from vendors such as Phillips Healthcare, Cerner, Meditech and EPIC.

Hospitals aren't just looking for people who can implement those EHR systems, they need IT people to run them and adapt them over the long haul.

"These are salaried employees. They are going to be busy for quite some time, like the Bureau of Labor Statistics suggested with its 2018 timeframe," Marx said.

Marx and others emphasized that workers with clinical knowledge, who may have formerly worked in a healthcare position, have a huge leg up over workers with only IT experience. So, healthcare workers who get formal IT training will be highly sought after.

Adding to the overall growth in healthcare IT positions is the fact that by 2020, nearly 28 million previously uninsured Americans are expected to get health insurance coverage as a result of health care reform, the majority of it coming through health care exchanges (HIX), which the government is mandating states deploy by 2014. The influx of newly insured Americans will put a strain on billing systems, databases and EHRs.

IT workers in other fields may also find a sense of fulfillment working in healthcare, where using their skills directly affects the well-being of patients.

"The better we do our job, the more people can get care, and the more people can get better care," Booz said. "There is definitely this sense of accomplishment beyond one's self role that you have when you're working in healthcare."

Computerworld
For more enterprise computing news, visit Computerworld. Story copyright © 2011 Computerworld Inc. All rights reserved.


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Google, Microsoft Bicker Over Patents

Google and Microsoft continued a very public and heated exchange on Thursday that sparked after Google's top legal officer accused rival companies -- Microsoft included -- of using "bogus patents" to fight a "campaign against Android."

Google's Chief Legal Officer David Drummond started the conversation on Wednesday in a post on The Official Google Blog complaining that rivals banded together to purchase 6000 patents from Nortel just "to make sure Google didn't get them." Microsoft General Counsel Brad Smith responded on Twitter saying that wasn't really true.

"Google says we bought Novell patents to keep them from Google. Really?" Smith said on Twitter. "We asked them to bid jointly with us. They said no."

Just when it would seem things couldn't get more awkward between the two tech giants, another Microsoft employee decided to get in the fight.

Microsoft spokesman Frank Shaw released an e-mail allegedly from one of Google's lawyers that seems to prove Google declined to enter a joint bid for "various reasons." The point here is that Drummond's conspiracy theory that rivals were teaming up against Google doesn't hold much water if Google was invited into the group.

Drummond responded to Microsoft's jabs Thursday saying that it was trying to "divert attention" and that the reason Google didn't want a joint bid was obvious. Here's what he said:

"Microsoft's objective has been to keep from Google and Android device-makers any patents that might be used to defend against their attacks. A joint acquisition of the Novell patents that gave all parties a license would have eliminated any protection these patents could offer to Android against attacks from Microsoft and its bidding partners. Making sure that we would be unable to assert these patents to defend Android -- and having us pay for the privilege -- must have seemed like an ingenious strategy to them. We didn't fall for it."

It makes sense that if Google is seeking a stronger patent portfolio to protect Android from further lawsuits and licensing fees that having joint ownership with its rivals is of little interest to them. What's confusing is that Drummond is pointing a finger at Google's rivals for using tactics Google seems to want to use itself. After all, stockpiling patents won't do Google much good unless it plans to use them against its rivals or wage a patent cold war where all sides are afraid to use their own portfolio due to repercussions from their rivals.

That seems to be the point that Microsoft spokesman Shaw landed on. He directly challenged Drummond Thursday on Twitter alleging that Google didn't join in on the Nortel bid because they wanted to use the portfolio against someone else.

We'll have to see what Drummond has to say about that.

One thing is for sure: It's nice to see that two major corporations that are helping drive the future of the smartphone industry aren't above squabbling like schoolchildren at recess.


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Google Shows How Not to Complain About the Patent Mess

Yesterday, Google Chief Legal Officer David Drummond blogged about the patents arms race that has major tech companies building gigantic portfolios of pricey patents, then using them to launch lawsuits or extract licensing fees (or, sometimes, to defend themselves against other companies launching lawsuits or extracting licensing fees). He called his post "When patents attack Android," and accused Google competitors such as Apple and to buy patents and use them to damage Android in the marketplace.

And then something unexpected happened: Microsoft released an e-mail from a Google executive which seemed to prove that Microsoft had invited Google to join it in bidding on some of the patents in question. Google declined to participate. Some conspiracy!

Drummond's post has accomplished something which you might have thought was impossible: it's leading to blogosphere coverage which largely sides with the patent aggressors. And while I agree with at least part of the gist of the post -- patents on questionable "inventions" are stifling innovation rather than aiding it -- the post doesn't make a convincing case that Google is being persecuted.

To wit:

1. Drummond: "Microsoft and Apple have always been at each other's throats, so when they get into bed together you have to start wondering what's going on." Sure, Microsoft vs. Apple is the tech world's most legendary ongoing battle. But the companies' history of working together when it serves both their interests is just as long. Remember this?

2. "But Android's success has yielded something else: a hostile, organized campaign against Android by Microsoft, Oracle, Apple and other companies, waged through bogus patents." Which patents are bogus, and why? We don't need a full accounting, but examples would have helped. (Google has vast quantities of patents itself, so I presume it's not opposed to patents, period.)

Also: nothing inherently wrong with competition between big companies being hostile. It's not always genteel and cheerful, and that's okay. Even necessary.

3. "Instead of competing by building new features or devices, they are fighting through litigation." What's with the "Instead of?" Apple is responsible for more of the smartphone biz's influential new features than any other single company. Its devices are the most iconic ones on the planet. Microsoft's Windows Phone 7 may not have much traction, but it's clever and available on a bunch of handsets. Both companies are building and fighting.

4. "Fortunately, the law frowns on the accumulation of dubious patents for anticompetitive means -- which means these deals are likely to draw regulatory scrutiny, and this patent bubble will pop." I hope so! And if it does, Google doesn't have a long-term problem here.

5. "Unless we act, consumers could face rising costs for Android devices -- and fewer choices for their next phone." I like cheap phones as much as the next gadget nerd. But I don't have any fundamental problems with the idea of companies using patents to preserve a competitive edge and prevent the value of inventions from immediately dwindling. It's when the patents aren't really for inventions that we have a problem. And Google's case would be a lot stronger if it demonstrated the bogosity of the patents it says are bogus.

As Paul Thurrott and others have pointed out, Android has gained so much mobile market share in so little time at least in part because Google gives it away to handset manufacturers that were used to paying companies such as Microsoft for software. Google can afford to give away a mobile operating system because it utterly dominates the search engine advertising business. The company knows how to play hardball. And if it's going to blog about all this-and I think it should -- it would be smart for it to explain just what makes Microsoft and Apple's actions unethical rather than just very, very aggressive.

[UPDATE: Google has amended the original blog post with a response to Microsoft's leaked Google e-mail. It's probably just me being dense, but I don't understand Google's brief explanation of why it chose not to join Microsoft's bid for the patents in question.]


For more smart takes on technology, visit Technologizer.com. Story copyright © 2011, Technologizer. All rights reserved.


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Ink-O-Dem Refill Service: Good Quality, Modest Bargain

Portrait of a Serial Refiller: Ink-O-DemThe Ink-O-Dem ink-refilling system has been on my mind for some time. As PCWorld’s Serial Refiller, I’ve been trying refilled and remanufactured black and tricolor cartridges for my HP Photosmart e-All-in-One, assessing their ease of use, output quality, and page yield. So far, all have been somewhat to significantly cheaper than the printer vendor's own cartridges; none, however, have matched the originals in output quality and ease of use, although some have come close.

Product:
Ink-O-Dem inkjet refills: Black, $10; tricolor, $15 (plus sales tax). Prices and compatibility may vary by store.
Vendor URL: Inkodem.com
Worth trying? Yes
Hassle factor: Low to medium
Print quality compared with OEM ink: Satisfactory
Yield (mixed set of samples): 126 pages
Cost per page: 20 cents (HP-brand inks: 26 cents)

Ink-O-Dem ink refill machineBased in McHenry, Illinois, Ink-O-Dem has installed on-site ink-refilling machines in thousands of stores nationwide, including Ace Hardware and Walgreens locations, as well as campus bookshops. You bring empty cartridges to the store, where an employee refills the tanks and returns them to you. (Contact the store first to confirm whether its machine supports your cartridges.) This is a step up from do-it-yourself refilling, letting someone else handle the messy part; trying Costco’s ink-refilling service, a similar procedure, was one of the easiest experiments of the seven I’ve done so far.

Ink-O-Dem’s small army of machines started supporting my printer model’s HP 60 cartridges only recently, and as of this writing most of the stores with the upgraded machines are located in the Midwest. As luck would have it, however, a store in San Jose, California--about 50 miles south of PCWorld’s headquarters in San Francisco--is testing the new machine. (We can't name the store, because Ink-O-Dem hasn't officially announced the store’s participation in this service.)

PCWorld senior editor Melissa Riofrio bought and drained two HP 60 cartridges, and then visited the store to have them refilled. The refill price was $10 for a black cartridge and $15 for a tricolor tank. The total price, $25 plus tax, is $10 cheaper than purchasing new black and color HP 60 cartridges from Hewlett-Packard. (HP also offers both cartridges in a pack for a small discount.) Your Ink-O-Dem cost may vary depending on the retailer you choose.

My Serial Refiller experiences are anecdotal: one printer, one set of cartridges, one chance for glory (or failure). They do not reflect how a third-party offering will perform with another printer, nor can they predict how it will perform over time. We also do not examine the archivability or durability of third-party products. But if you’ve been wondering whether refilled or remanufactured ink cartridges are worth the money and hassle, these experiences will give you a taste of what to expect.

A Leaky First Impression

Black cartridge leaking inkThe store was quiet when Melissa visited, so she waited just 20 minutes for the refill. (In contrast, my refill at Costco took an hour.) When Melissa retrieved the cartridges, she noticed that each had been given a little clip-on printhead cover. The cartridges were inside a small zipper-lock bag.

Because it was a very hot day, Melissa carried the cartridges with her, rather than leave them in the car, while she ran some more errands. Eventually she parked the car in a covered lot and left the cartridges in her backseat, thinking they would be okay in a motionless, cool car. But when she returned, the black cartridge had leaked some ink. The color cartridge seemed intact.

When I received the cartridges, I noticed black ink smudges inside the bag. Aside from the initial leaks, however, no additional ink seemed to have spilled out. Overall, the tanks were in good condition.

Smooth Sailing Despite Warnings

Installation went smoothly. I inserted the cartridges and ran the standard alignment procedure recommended by my HP printer.

Ink-smudged bagI began printing. The printer's LCD screen posted the usual ominous warnings that accompany third-party ink refills, including 'Original HP ink depleted' and 'Alignment recommended'. The latter one puzzled me, as I had aligned the cartridges only minutes earlier. The prints looked normal, however, so I ignored the messages and soldiered on.

Decent Output Quality

As for print quality, Ink-O-Dem's inks performed adequately. To the cartridges’ credit, the output had no ink blotches or other visible problems. The text and images were crisp and clear, and perfectly acceptable for everyday home and business use--comparable, in fact, to the printouts from the Costco refills I tried. Viewing these pages side by side with HP's output, however, I thought the differences were obvious: Ink-O-Dem's grayscale images had a slightly greenish tint, and its colors and textures weren't quite as realistic.

I'm quibbling here, of course. Fine details might matter a lot to the most discerning users, but less so to average folk who simply want decent print output for less. If you're in the latter group, Ink-O-Dem's inks are acceptable.

When I dribbled water across an Ink-O-Dem page, the expected streaking and color bleeding occurred. The resulting mess was no worse than what I saw with HP’s inks, however.

Cheaper Than HP, Pricier Than Costco

Page yield was pretty good: I printed 126 pages with the Ink-O-Dem refills before seeing streaks in images and text. The original HP cartridges printed 134 pages before streaks appeared, while the Costco-refilled cartridges lasted 148 pages.

The cost per page with Ink-O-Dem refills for my printer was 20 cents. That's nearly twice the price of Costco's refill service, which came out to 11 cents per page. With HP’s original cartridges, the price was 26 cents per page. As you can see, Ink-O-Dem falls about halfway between Costco and HP in the value category. Note, however, that Costco charges $50 or more for an annual membership, so it wouldn’t make sense to join solely to refill ink tanks unless you did so frequently.

Refilling with Ink-O-Dem was problem-free overall. At the prices we paid in the store we tried, however, it did not provide compelling savings over HP’s own inks, especially in light of the similarly easy--but significantly cheaper--experience I had at Costco.


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iPhone Leads Smartphone, but Samsung Still Gains

Apple became the top smartphone maker globally for the first time in the second quarter, IDC confirmed.

Apple shipped 20.3 million iPhones in the second quarter, ahead of Samsung, Nokia, RIM, HTC and others, in that order.

In the first quarter of 2011, Apple shipped 18.7 million iPhones, second to Nokia's 24.2 million smartphone shipments. Notably, Nokia is undergoing a transition to the Windows Phone platform, away from its Symbian devices. But it won't have Windows Phones out until late this year.

"The smartphone market crowned a new leader in second quarter, and its name is Apple," said Ramon Llamas, an IDC analyst. He said Apple has made huge strides since the iPhone's launch in 2007.

"Demand has been so strong that even [iPhone] models that have been out for one or two years are still being sought out," Llamas noted. "With an expected refresh later this year, volumes are set to reach higher levels."

Other market research companies have noted Apple's move to the top , including Strategy Analytics.

While Apple is on top as a manufacturer of smartphones, its iOS software is not the biggest globally. That mark goes to Android, which is used by several manufacturers, including Samsung and HTC. IDC will report on platform shipment totals for the second quarter in September, Llamas said in an email. Android first reached the top spot in the fourth quarter of 2010.

IDC said Apple's success stems from selling iPhones through more than 200 carriers in 200 countries, as well as its increased manufacturing capacity. While Apple has reached the top spot, it is still below Nokia's single-quarter record of shipping 28 million smartphones.

Samsung, in second place with 17.3 million smartphones shipped in the second quarter, saw 380% growth over the second quarter of 2010. Part of the reason is Samsung's popular line of Galaxy S smartphones, based on Android, IDC noted.

Research in Motion, finishing fourth with 12.4 million smartphones shipped in the quarter, saw only a 10% increase from a year ago. That is the lowest level of growth of the top five smartphone makers (although Nokia actually declined by 30%). Part of RIM's problem was that it released only a few new models in 2011, IDC noted.

IDC said that while Apple has hit the top spot, there is still no runaway leader, and the top five rankings could change in coming quarters.

Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed . His e-mail address is mhamblen@computerworld.com .

Read more about smartphones in Computerworld's Smartphones Topic Center.

Computerworld
For more enterprise computing news, visit Computerworld. Story copyright © 2011 Computerworld Inc. All rights reserved.


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Open Source Effort Will Deliver Low-Cost Wi-Fi for All

One of the great things about open source software is that it doesn't just bring a wealth of benefits to businesses. Rather, by making low-cost, high-quality software widely available to everyone, it also has the potential to change lives around the world.

Most of us are familiar with the One Laptop Per Child (OLPC) effort to put low-cost computer hardware in the hands of the world's poorest people, but a like-minded project that's less well-known aims to do something similar with Internet access.

The goal is to develop low-cost, open source Wi-Fi software, and on Wednesday Geeks Without Frontiers--an initiative of the not for-profit Manna Energy Foundation--announced the final development of just such a solution.

'Millions More People'

Facilitated by a grant from the Tides Foundation, the new open80211s (o11s) technology will enable the development and rollout of large-scale mesh Wi-Fi networks for roughly half the cost of a traditional network, says Geeks Without Frontiers. Designed to use existing hardware to minimize cost and maximize availability, it's expected to be particularly important in areas where legacy broadband models are currently considered to be nonviable economically.

Built primarily by Cozybit, the technology is managed by Geeks Without Frontiers and I-Net Solutions and sponsored by Google, Global Connect, Nortel, OLPC and the Manna Energy Foundation.

“By driving down the cost of metropolitan and village scale Wi-Fi networks, millions more people will be able to reap the economic and social benefits of significantly lower cost Internet access,” explained Michael Potter, one of the founders of the Geeks Without Frontiers initiative.

The video below explains the project in more detail.

Two Authentication Methodologies

Technologically speaking, nodes and antennae will work together in these new mesh networks to extend connectivity and the Internet to a wide area. The networks are self-healing, so that if one tower goes down, the software self-assesses and automatically re-routes to keep the network at full availability.

Manna Energy/Geeks Without FrontiersFor security, meanwhile, the new Wi-Fi software uses the strongest authentication methodology known to exist for mesh networks, the group says. Specifically, in addition to Simultaneous Authentication of Equals (SAE) to protect against offline dictionary attacks, it also implements Authenticated Mesh Peering Exchange (AMPE), which enables multiple authenticated nodes to encrypt traffic among themselves.

The combination of high-level security and open source code is designed to help ensure that new networks based on o11s are safer and yet significantly cheaper to deploy.

The next step for the project is to complete the current open source implementation of the upcoming IEEE mesh standard 802.11s, which is expected be ratified in the fourth quarter of this year. In the meantime, the latest version of the software is available for developers on the o11s site.

A World of New Possibilities

So what does this mean for those of us in the business world who are already fortunate enough to have Internet access? In a nutshell, it's going to mean a very different world on the Internet, populated not just by the “haves” but increasingly by those who were formerly the “have-nots” as well.

That's a very good thing, not just for all those coming on board at last--who will suddenly find themselves faced with a new wealth of opportunities--but also for us in the business world, by virtue of the dramatically increased numbers of potential customers and markets.

It's going to require new sensitivity on our part, to be sure, as we must increasingly realize that many of the consumers seeing our online ads, say, may live not in suburban subdivisions but rather in village huts.

But the opportunities will be there, not just for advertising and communication but for new types of products and services as well. This would be a good time to start thinking about what your company will do with this fresh new world of possibilities.


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Google+ Startup Beats Twitter, Facebook

Google+ is going great guns right out of the gate, with the site starting out far better than rivals Facebook, Twitter, and Myspace did.

Google+ , the social network Google launched just over a month ago, already has more than 25 million visitors, according to Comscore, an Internet traffic watcher.

Comscore said Google+ hit the 25 million visitor mark just shy of its one-month birthday.

Meanwhile, Comscore notes that it took Facebook about 35 months to get 25 million visitors. It took Twitter more than 30 months and it took Myspace more than 20 months to reach the 25 million-user mark, Comscore added.

"I'm mainly trying to put Google+'s exceptional growth in context by showing that Facebook is today the clear market leader even though it took longer than all its key competitors to reach 25 million," said Andrew Lipsman, a vice president at Comscore.

Lipsman added that at this point it's unclear how many of those 25 million Google+ users are regular users of the site or are simply people curious to take a look at the new site.

"It's hard to ignore the impressive growth numbers so far, but I think there are also many visitors who are still dipping their toes into the pool but not yet ready to dive in," he said.

He also noted that Google+ is still in a field trial phase and that users can only join the social network by invitation.

Dan Olds, an analyst with The Gabriel Consulting Group, agreed that the Google+ numbers are impressive, but he added that they're not surprising.

"Come on, they've got Google behind it," said Olds. "The visitor count is probably a combination of looky loos and actual users who are getting their profiles in shape."

And he also noted that just because Google+ is out of the gate faster than Facebook and Twitter, there's still a long way to go to usurp them.

"Facebook was the first truly mass market social network and, along with Myspace, was the pioneer," said olds. "They were mostly unknown and had to build up their brand from the ground up. Google+ comes into an environment where social networking has a lot of mindshare and users, and it has the Google name attached to it and Google resources behind it. Its hit count should grow pretty quickly."

The Comscore report noted that the U.S. leads in Google+ visitors with more than 6,440,000 from home and work computers (not from mobile devices). India comes in second with more than 3,600,000 Google+ users. Both Canada and the U.K. have had more than 1 million visitors and Spain rounds out the top 10 with more than 460,000.

And Comscore also pointed out that 63% of Google+ users are male.

Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin , or subscribe to Sharon's RSS feed . Her e-mail address is sgaudin@computerworld.com .

Read more about web 2.0 and web apps in Computerworld's Web 2.0 and Web Apps Topic Center.

Computerworld
For more enterprise computing news, visit Computerworld. Story copyright © 2011 Computerworld Inc. All rights reserved.


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