Security: Facebook Pays $40,000 to Hackers in Bug Bounty Scheme

  • Facebook has already paid out $40,000 to hackers for identifying flaws in its website, just three weeks after the social networker launched its “Bug Bounty” program that offers compensation for finding vulnerabilities in the site’s code.
  • “Schemes such as Facebook’s illustrate the push towards greater disclosure of security weaknesses and hacking incidents, as the technology industry strives to pool its resources to protect itself better,” reports The Financial Times. “The approach has won praise from digital advocacy groups such as the Electronic Frontier Foundation.”
  • “The program has also been great because it has made our site more secure — by surfacing issues large and small, introducing us to novel attack vectors, and helping us improve lots of corners in our code,” explained Joe Sullivan, Facebook’s chief security officer.
  • Facebook joins others such as Google, Mozilla and HP that have programs in place to offer payments to outsiders who identify vulnerabilities.

What Can (Should) We Learn from the HP $99 TouchPad Fire Sale?

  • ReadWriteWeb journalist Dan Rowinski posted an interesting op-ed piece this week: “HP’s $99 TouchPad Fire Sale Can Teach Everybody A Lesson.”
  • “Tablets priced at $99 flying off the shelves and what had been a significant headline on Tuesday (Best Buy has 250,000 unsold TouchPads) had completely turned around on Sunday (Good Luck Finding a $99 TouchPad),” writes Rowinski. “It got me to thinking. As much as consumers love their Apple products and the iPad is a terrific device, consumers want something that is price efficient, even if it is a touch flawed. With literally hundreds of thousands of TouchPads sold over the weekend, a significant note should be playing in retailers’ and manufacturers’ heads — opportunities await for those willing to make a sacrifice.”
  • Rowinski speculates that an iPad killer is not in our immediate future. He also suggests that major changes are in the making with the browser-based mobile apps enabled by HTML5. He discusses tablets by Motorola, Samsung, HTC and Research In Motion and how price point may become as significant a factor as available apps. He addresses how Amazon learned valuable lessons with its Kindle and could possibly “recreate the Kindle furor by introducing a tablet into the market at $200 or less.”
  • “The great equalizer will be price,” writes Rowinski. “Amazon and to a certain extent Microsoft with Windows 8 have actually benefited from waiting to enter the tablet wars. They now see the battlefield in front of them and what it will take to make an impact. Quality devices with reasonable prices. Then turn and make money through value-added services.”

HP Update: We Say Farewell to TouchPad and WebOS

  • HP has decided to end its recently launched TouchPad tablet and will take a $100 million loss on unsold inventory. (Interestingly, tech columnist Andy Ihnatko was getting ready to write a mixed but generally positive review of the TouchPad for the Chicago Sun-Times.)
  • Additionally, on the heels of the company announcing it would be integrating its webOS with smart appliances and other devices, HP now says there will be no more webOS phones. It did apparently leave the option open to licensing webOS to third parties.
  • In related news, AllThingsD reports that HP’s recent decision to stop the development of its webOS puts it’s personal computer business in a perilous position, and rumors are spreading as to what the company’s next step will be.
  • The most likely option involves a spin-off PC business as a separate company, much like Motorola did at the beginning of the year.
  • If HP decides to sell instead, it is likely that an Asian company will step forward to make the purchase — and the front-runner seems to be Samsung. The predicted price if a sale were to occur is placed at around $20 billion.

Marc Andreessen Believes Software Is Eating the World (A Good Thing)

  • “In an upbeat and highly insightful essay on technology and innovation, pioneer Marc Andreessen outlines the ‘dramatic and broad technological shift in which software companies are poised to take over large swathes of the economy…'” comments ETCentric staffer Bob Lambert with this submission.
  • Andreessen notes HP’s announcement that it is “exploring jettisoning its struggling PC business in favor of investing more heavily in software” and Google’s plans to “buy up the cellphone handset maker Motorola Mobility” as recent surprises in the tech world, yet also examples of what makes the pioneer “optimistic about the future growth of the American and world economies.”
  • Andreessen suggests that Apple and Google are undervalued and we should avoid using the term “bubble” when analyzing the value of technologies. He writes: “…too much of the debate is still around financial valuation, as opposed to the underlying intrinsic value of the best of Silicon Valley’s new companies.”
  • “Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not,” Andreessen adds.
  • Andreessen’s essay offers a compelling take on the direction of the tech industry, its place in world economies and some of the challenges that lie ahead. He notes interesting examples including Amazon, Netflix, Pixar, Pandora, Skype and others.
  • “Instead of constantly questioning their valuations, let’s seek to understand how the new generation of technology companies are doing what they do, what the broader consequences are for businesses and the economy and what we can collectively do to expand the number of innovative new software companies created in the U.S. and around the world,” he concludes. “That’s the big opportunity. I know where I’m putting my money.”

Forget the TouchPad for Now: HP Wants to See webOS Everywhere

  • Despite the TouchPad’s dismal retail performance, HP is forging ahead with webOS.
  • HP is in talks to license webOS for use in smart appliances, cars, gadgets “and just about anything else that has a screen,” reports Digital Trends.
  • The company is taking a similar stance to that of Google with Android in terms of integrating the OS in smart appliances and other devices. HP plans to integrate webOS into all of its computers by next year.
  • “I happen to believe that webOS is a uniquely outstanding operating system,” said HP CEO Leo Apotheker during the D9 conference. “It’s not correct to believe that it should only be on HP devices. There are all kinds of other people who want to make whatever kind of hardware they make and would like to connect them to the Internet.”
  • “We are fans of webOS,” explains Digital Trends, “but if HP hopes to expand the platform, it will have to deal with the performance issues we’ve seen on the TouchPad and Palm Pre devices and work to drum up more interest from the developer community.”

Tablet War: Can Anyone Compete with the iPad?

  • You’re probably tired of reading about it, but as the tablet wars continue it seems little traction can be made against Apple’s market leader. The Wall Street Journal offers the latest look at the iPad’s impact.
  • HP announced it will lower its price on the TouchPad by 20 percent, only a month after the tablet hit the shelves. Motorola cut the price of its Xoom tablet following the February launch and offered a cheaper model, with little response.
  • Samsung has stopped reporting how many Galaxy Tabs they are shipping — and is now stuck in a patent dispute with Apple that threatens its European sales.
  • Motorola and RIM don’t say how many tablets they have sold and, as recently reported on ETCentric, RIM’s PlayBook is in carrier trouble since Sprint Nextel pulled its support.
  • Meanwhile, Apple has sold some 28.7 million iPads since April 2010. According to WSJ, Apple “says it is having difficulty keeping up with demand and selling every iPad it can manufacture. Five months after its release, its iPad 2 can be hard to find in retail stores. The company said it shipped 9.3 million iPads in the June-ended quarter.”
  • Despite price changes, many consumers seem to view the iPad as the tablet leader and others as imitators. As a result, the tablet market is essentially divided into two sectors at this point — Apple’s iPad…and everyone else.
  • Do any of our readers have a different take on this trend? Does anyone recommend using a tablet other than the iPad?

HP Launches 4G Version of its TouchPad Tablet

  • HP unveiled a new 4G version of its TouchPad tablet on Amazon this week.
  • The tablet features a faster 1.5 Ghz processor, an updated webOS, 32GB of memory, 4G and Wi-Fi capabilities, and a 9.7-inch LED touchscreen.
  • It retails for $699 and is available for pre-order on Amazon.com (although the listing does not include a release date).
  • According to PCMag: “Over the weekend, HP offered a $100 discount on the TouchPad, as did retailer Staples, allowing users to get as much as $200 off the tablet. It’s not clear if that was the original intent, however. Staples said rather cryptically that the coupons ‘were meant for different audiences,’ and did not respond to follow-up questions.”

Time Inc. to Offer its Magazines on Multiple Platforms

  • Time Inc. announced it will offer all of its 21 magazines including Time, Sports Illustrated, People and Fortune on just about every tablet platform.
  • Look for Time’s publications on iTunes, Android’s store, HP’s new tablet, Next Issue Media, and Nook by the end of this year. (There is no mention of RIM’s Playbook or Kindle yet.)
  • To date, Time’s digital magazine and content apps have been downloaded more than 11 million times.
  • “Note that while the release mentions ‘digital subscriptions,’ what that really means is ‘digital-only subscriptions available everywhere but iTunes,’ reports the Wall Street Journal. “Apple and Time Inc. still haven’t come to terms on subscription rules, so right now the only way to get a digital subscription for the iPad is to buy a subscription package that also includes print.”

Apple Launches New OS and Reports Record Profits

  • Apple Inc. officially unveiled its newest operating system — OS X 10.7 “Lion” — on Wednesday. The OS introduces many features that mimic functions seen on its popular iPad.
  • The company also reported record earnings in the third quarter, despite any major new product announcements. Revenue was up 82 percent, and profits more than doubled, as consumers continued to purchase iPhones and iPads in record numbers (Apple computers also continued to sell, although iPod sales declined 20 percent).
  • Global sales of iPads nearly tripled to 9.25 million during the third quarter. Apple credits some of the success to adoption of the device by businesses such as Alaska Airlines and Nordstrom.
  • The New York Times reports that Apple’s current market value is 10 times Dell’s and nearly five times Hewlett-Packard’s.

Acer Announces Social Networking Hot Button for New Laptops

  • Acer has announced that the new Gateway NV and ID series laptops will provide one-touch access to social networking sites such as Facebook, YouTube and Twitter.
  • Social networking hot keys will activate integrated widgets that enable activities such as status updates, message posting, uploading media and more.
  • However, some laptop makers — including HP and Dell — suggest that hot buttons could potentially overwhelm users, and prove to be an unnecessary feature when software could easily do the job (in some cases, such keys are even being removed from business laptops).
  • Computer users spend on average one out of every six minutes of online time on social networks, according to comScore.

HP Enters the Tablet Fray This Week with the TouchPad

  • Hewlett-Packard will start selling its new TouchPad on Friday, entering the tablet market currently dominated by the iPad 2.
  • The new tablet, starting at $500, features a 10-inch screen with “a slick, distinctive software interface.”
  • Walt Mossberg likes TouchPad’s UI but downgrades it for poor battery life, a small number of apps, and an operating system that is buggy and requires regular rebooting.
  • The TouchPad will initially be available in two versions (16 or 32 gigabytes of storage) and will only offer Wi-Fi connectivity.
  • Mossberg: “At least for now, I can’t recommend the TouchPad over the iPad 2.”

Toshiba Releases its Thrive Tablet with Honeycomb

  • Add another new tablet to the growing list of available devices… Toshiba began taking pre-orders last week for its 10.1-inch Thrive Tablet, expected to hit retail shelves in early July.
  • The $430 Wi-Fi-only 8GB tablet runs on Android 3.1 Honeycomb and is powered by Nvidia’s Tegra 2 chip.
  • PC Magazine reports there will also be 16GB ($480) and 32GB ($580) models available.
  • Inputs include: USB 2.0, Mini USB, HDMI and SD Card.
  • Features include: Multitouch 1280×800 LED display, front and rear cameras and a replaceable battery.
  • According to a PC World review this week, interoperability may be what makes the Thrive stand out from the pack: “The Thrive is the first Honeycomb tablet to include a full-size SD Card slot. None of this microSD card nonsense for Toshiba; ditto for only having a micro- or mini-USB port. By including the SD Card slot and USB port, the company recognizes the need for interoperability among devices. And only with interoperability can a tablet begin to replace a laptop in your arsenal.”
  • In related news, Hewlett-Packard also recently announced its first media tablet, the 9.7-inch webOS-powered TouchPad. The Wi-Fi-only TouchPad is priced at $500 (16GB) and $600 (32GB).

Best of D9: All Things Digital Conference

Walt Mossberg and Kara Swisher of The Wall Street Journal hosted the D9 (D: All Things Digital) conference May 31 to June 2 in Rancho Palos Verdes, California. The annual event featured compelling interviews and demonstrations from an array of top media and technology executives representing companies such as HP, Twitter, AT&T, Nokia, Netflix, Disney, Adobe and many more.

The D conference was established in 2003 by columnists Mossberg and Swisher as an annual showcase for technology innovators and big names from the worlds of business, entertainment and occasionally politics. This year the title was “D9” (indicating its ninth year). The conference is known for hosting influential heavy-hitters and its somewhat exclusive nature. Typically, attendance is limited to about 500 guests.

ETCentric readers were quick to forward relevant news items and announcements that emerged during this year’s show. The following is a collection of links to articles and videos submitted by our readers, accompanied by their comments:

 

D9 Video: Eric Schmidt Highlights

  • Google, Apple, Amazon and Facebook are successfully exploiting global platform strategies.
  • Challenge working with entertainment companies since taking content from scarcity to ubiquity.
  • Also need to deal with disintermediation and piracy. On privacy, Google will remain a place where you can do anonymous searches. And committed to insuring you have control over information they have on you.
  • We’re seeing the consumerization of IT that will lead to the death of IT as we know it.
  • There are not sufficient resources to develop for more than the two largest players: Google and Apple.
  • Search is moving from link-based answers to algorithmically-based answers using artificial intelligence.
  • Concerned about a balkanization of the Internet, which will lead to an Internet per country.
  • If you’re concerned about security, use the Chrome browser and use a Mac.

 

Google Shows Off Its Groupon Killer, Launching Tomorrow

  • Video of Eric Schmidt’s demo of Google Wallet and Google Offers.
  • Google is not charging a processing fee but is taking a share of the offer.
  • Credit card companies are willing to upgrade the POS terminals to get benefits of higher security.
  • Lookout Groupon, LivingSocial, etc.!!!

 

Groupon CEO Andrew Mason on Google, Clones and Hubris – But Not on an IPO

  • CEO sees Groupon evolving in three phases so far: One – the Daily Deal, Two – Personalized Deals, and Three – a technology company where they become more integral to a person’s daily life (i.e. wherever they are and whatever they want to do, they can get a deal right now based on the inventory of available deals).
  • Could you use Groupon to sell media?

 

D9 Video: Microsoft’s Steven Sinofsky on Windows 8

  • 95 percent of how the world gets on the Internet is through Windows.
  • Windows 8 will be a “modern” rethink to enable PCs and tablets to satisfy “things they say are solved in an iPad” and still bring all the benefits of Windows.
  • Video demo of Windows 8 showing touch-based UI (can still use mouse too), live tiles.
  • Targeting 2012.

 

D9 Video: Fanhattan Demo

  • Free video discovery app Fanhattan launched at D9 this week.
  • The iPad app serves as a directory and discovery engine, sourcing reviews and ratings from Metacritic and Rotten Tomatoes, while organizing related content from the likes of YouTube, IMDb and Amazon.
  • Also shows pre-release version running on an Internet TV which is capable of creating a branded movie page in this case for Pirates of the Caribbean.
  • It connects to iTunes, Netflix, Hulu and the ABC Player to view TV and movies.
  • CNET review: “This free iPad app sounds simple–it finds stuff about movies and TV shows you want to watch–but the depth of the content, utility of what the site does, and clarity of the interface just puts this app on a different level than anything else I’ve seen.”

 

D9 Video: Hewlett-Packard CEO Leo Apotheker

  • WebOS will be available to other companies and enterprises for their own use.
  • Goal is to create an end-to-end ecosystem that figures out on a single device in the Cloud whether you’re doing enterprise or private work.
  • HP can create a large ecosystem of printers, PCs and tablets amounting to 100 million devices a year itself. They hope to interest others as well.

 

D9 Video: Reed Hastings Highlights

  • On Netflix’s virtuous cycle: the more content they get, the more members they get and they can pay more for content.
  • Consumers want all the new stuff but that’s very expensive.
  • At $8/month, they’re a compliment to the new stuff.
  • The news stuff will remain pay-per-view since has higher margin for content owners.
  • Can grow from 24 million subscribers currently to capture Internet TV and tablet viewers plus a share of the 5 billion active mobile phone users worldwide who like video.
  • Need to stay innovative.
  • Focus on talent density, which is the fewest number of talented people.

 

D9 Video: Twitter CEO Dick Costolo

  • Took three years to send the first billion tweets. Now sends a billion tweets every SIX days!
  • There are over 600,000 developers who have downloaded over 900,000 API tokens.
  • Will look to TweetDeck (recently acquired) as the professional UI.
  • Rolling out a native photo sharing app, relevance sorted search results and web intents which allows you to add a Twitter client into your website. 80 percent of advertisers using promoted tweets renew.
  • Advertisers are experiencing very high engagement rates (VW’s ad: 52%).
  • Focused on success of business, not IPO.

 

DARPA – The Coolest Agency You’ve Never Heard Of: Regina Dugan at D9

  • Regina Dugan’s DARPA t-shirt says “Impossible, Improbable, Inevitable” which describes the progression of their programs.
  • Developed Internet, GPS, stealth, night vision, UAV, MEMS technologies.
  • DARPA’s Mission is the “prevention and creation of strategic surprise.”
  • Encourages programs to have the big success.
  • So that means they can’t fear failure. Fear of failure is the limiting factor.
  • Talks about growth in need for cyber security, new computing architectures, explosive detection system.

 

D9 Tech Demo: Inkling

  • Inkling reinvents the college textbook for the iPad that is both interactive and social.
  • Rather than paying $200 for a book, you can buy it a chapter at a time for far less cost since the content is not re-sold like a physical book.
  • See impressive video demo.

HP CEO Leo Apotheker Discusses New Online Strategy

In his first public appearance since joining Hewlett-Packard in November, CEO Leo Apotheker delivered a speech in San Francisco that outlined the company’s new online strategy that he explained will target both consumers and businesses. Apotheker emphasized cloud computing and an online app store as part of his vision to bring HP to the forefront as “the platform for the cloud and connectivity.” He suggested that the app store would include programs from HP as well as from other companies.

Apotheker dismissed speculation that HP would be acquiring software maker SAP AG or any other provider of transactional business programs. The Wall Street Journal reports that his goal is to address the “increasing amount of unstructured data — information that isn’t easily categorized”; HP will “focus on products and services that will help businesses better make sense of them.”

Apotheker explained that the company’s webOS operating system (newly acquired along with Palm last year) is designed for smartphones and tablets, but will also ship on HP PCs, providing the company with a greater scale. HP plans to produce laptops and desktops with webOS working alongside Windows, enabling computers to interact with HP’s smartphones and tablets.