Paul Wallbank | Paul Wallbank - Communications Professional

Jailbreaking the Internet of Things

Jailbreaking the smarthome opens some complications for the Internet of Things

The news that hackers have turned their attention to Nest thermostats raises some delicious possibilities for the Internet of Things.

Jailbreaking smartphones has been normal for years as people circumvent restrictions to add features or software and there’s no reason that this can’t be done to smart thermostats, light bulbs or kettles.

Almost all the smart devices being deployed have processors and capabilities far greater than what’s needed to carry out their designed purpose, so an imaginative hacker can do some interesting things with a jailbroken home automation system.

Using your kettle to control your lights or fridge to open your garage door is a bit of gimmick but there’s plenty of potential for doing some cool, and mischievous, things.

While hacking the smart home for kicks might be relatively harmless, tinkering with industrial devices could have unintended and disastrous consequences. It’s another example why security is one of the top concerns as the Internet of Things is rolled out.

Knocking at Silicon Valley’s door

Chasing the Silicon Valley model may be a mistake for cities trying to become modern industrial hubs

In opening Salesforce’s new London office yesterday, former BT CEO Lord Livingston described the city as “knocking at the door of Silicon Valley.”

Judging from the Computing UK article that description hasn’t impressed the rest of the British tech community as it confirms in their minds there is, as usual, too much focus on the capital and Livingston’s view also raises the question of whether London really wants to be another Silicon Valley.

Like all global industrial hubs Silicon Valley the result of a series of happy coincidences; massive defense spending, determined educators, clever inventors and savvy entrepreneurs all finding themselves in the same place at the same time.

Trying to replicate the factors that turned the region into the late Twentieth Century’s centre of technology is almost impossible – even the United States couldn’t afford the massive defense spending over the fifty years from 1941 that underpinned the Valley’s development.

Apart from the spending; the culture, economy, geography, markets and workforce of Silicon Valley are very different to that of London’s.

This not to say London doesn’t have advantages over Silicon Valley; access to Europe and relatively easy immigration policies make Britain a very attractive location for tech businesses. If the local startup community can tap The City’s banking resources then London could well be the next global hub.

If London is the next global tech centre – history will tell – it will almost certainly be very different to Silicon Valley.

Strangely, the event Lord Livingston was speaking at reflects how the Californian tech sector is evolving; Salesforce is a San Francisco company and represents a shift in the last five years from the suburbia of San Jose and Palo Alto to the quirky city life of SoMa and the Tenderloin.

At the same time Silicon Valley itself is evolving into something different, just as it did in the 1990s with the switch from microprocessor manufacturing to software development.

That shift illustrates the risks of trying to imitate one industrial hub; by the time you’ve build your replica, the original has moved on.

If you spent your life trying to knock on the door of heroes you want to imitate, it would be shame to finally make it only to find they’ve moved.

Reinventing venture capital

How Google Ventures James Temple wants to reinvent venture capital

James Temple writing in on tech website Re/Code has an excellent profile of Google Ventures founder Bill Maris and his quest to re-invent the venture capital industry.

Certainly the Silicon Valley venture capital industry is ripe for disruption; Maris is not alone in pointing out that most investors in the sector and focused on short term incremental gains like shopping apps and online stores.

Probably the biggest thing that Temple points out in the story is the importance of Big Data to the Google Ventures model, although Maris seems to be acutely conscious of the limitations of relying on algorithms to make decisions;

Because you can 100 percent use data and statistics in exactly the wrong way. That’s a trap some fall into, one that we really try hard to avoid. But I think it’s important to use that as a tool.

The data is a support. It’s just like having your other partners there.

Being skeptical about the infallibility of Big Data and algorithms seems a very un-Google thing, but it may work well for Bill Maris and his team.

Whether Maris and Google Ventures can upend the Silicon Valley investment culture remains to be seen; the real message though is that the venture capital industry is just as vulnerable to disruption as any other.

Security in the age of connected kettles

We need to start demanding more of our government and business leaders in enforcing online security

A few weeks back I gave a presentation to the Australian Seniors Computer Clubs Association as part of Staying Safe Online Week.

The presentation, Security In The Age of Connected Kettles, looked at where we are today with online security and some of the challenges facing individuals, businesses and communities as threats become more pervasive with cloud computing, personal technology and the internet of things while the people creating these risks become more professional.

Overall, it’s not a cheery scenario and I end with a call to action that we have to start insisting business, public sector and political leaders start taking online security seriously as a public safety issue.

Over ten slides we covered where we are today in personal and small business online security and some of the challenges facing individuals as computing moves onto the cloud and smartphones.

The ongoing online safety battle

Online safety is evolving as we move from PCs to tablets and smartphones, today the risks are increasingly appearing on our mobile devices although the desktop computer and email scams remain the biggest risk.

It’s increasingly about the money

A change to the security landscape in recent times has been the rise of professional malware. While a decade ago most of the hacks and viruses we saw were the work of people demonstrating their skills or causing mischief, today there is big money in compromising computers and capturing data.

The rise of ransomware

One of the best examples of the professionalisation of the internet’s bad guy is the rise of ransomware.

Ransomware locks your computer with a demand for payment to release your data; if you don’t pay you lose all your information.

Many of the online threats though are far more subtle; the theft of data from Target, compromises of Sony’s customer databases and ongoing security breaches illustrate how the risks are far greater than just on our desktop.

Smartphone lockups

Ransomware has moved off personal computers onto smartphones with both Android and Apple systems being attacked.
The ‘hacked by Oleg Pliss’ message is a good example of how Apple’s products are just as much at risk as other companies’ platforms.
Also the ‘hacked by Oleg Pliss’ lockup shows how the security aspects of cloud computing services are going to become more important to the average person.

Security basics

The basic advice for the average user remains the same;

Strong passwords
Don’t use common passwords
Be careful what you click on or visit
Keep your systems up to date
Have good security software

However times are changing and many security issues are out of the average person’s control.

Lessons from Heartbleed

The Heartbleed Open SSL bug illustrated the limits of individuals in protecting their information. As a bug in the secure socket layer software, the Heartbleed Bug could expose sensitive data on websites using the service.

The disappointing thing with Heartbleed is that people following good security policies were vulnerable.

Probably the biggest threat with Heartbleed however is the Internet of Things, where relatively simple devices – the connected kettle – could expose security credentials.

The Target hack

Another example of how security is beyond the control of the individual user is the Target hack. Hackers found their way into the US department store’s network though an airconditioning contractor. From there, they were able to steal millions of customer payment details.

The Target hack is one of dozens of similar coporate security compromises and this will continue until security is taken seriously by company directors and regulators.

A pocket sized security breach

As the Oleg Pliss hack showed, smartphones are not immune to security breaches.

With our phones gathering increasingly more data on our behaviour, protecting the data they gather is going to become one of the biggest challenges facing us.

Rich data

Smartphones are not just gathering location data, as technologies like iBeacons roll out more information is being gathered from more sources.

When we go shopping, attend a football game or visit the doctor these technologies are collecting information on our personal habits and behaviour.

Not a generational issue

One of the myths around security and privacy is that concerns revolve around the generations.

The idea that only older people care about privacy or that younger folk understand technology is a myth.

Unfortunately however our political and business leaders come from a segment of society that doesn’t care about or understand the technology or issues.

If meaningful change is to be made in securing our information, then we’re going to have to demand our business and political leaders take these issues seriously.

Economics for the ordinary person

Economist Ha-Joon Chang believes we should challenge the economic theories that rule our modern governments

“95% of economics is common sense” says economist Ha-Joon Chang in his book The Little Blue Book — Five Things They Don’t Tell You About Economics.

In a presentation at this year’s RSA conference Chang explains some of the underlying themes of his book, particularly the point that the various schools of economics theory are based on their own sets of cultural assumptions and that every group struggles to explain the world, especially when asked to fit Singapore into their models.

Chang’s five points are a call for the average person to understand economics and be prepared to challenge the orthodoxies being trundled out by business and political leaders.

You should be willing to challenge professional economists (and, yes, that includes me). They do not have a monopoly over the truth, even when it comes to economic matters.

As economists have been allowed to become the high priests of modern society — or possibly the court jesters of the corporatist world — it may well be time to challenge them.

Competing in the global tech race

Some countries’ leaders recognise they live in the Twentieth First Century while others are struggling with Twentieth Century.

Last week I wrote a piece for Business Spectator on the contrast between countries competing for tech investment and skills.

Irish Taoiseach Enda Kenny was in Silicon Valley promoting Ireland as an investment and operating location while in London the Queen hosted 350 British tech companies at Buckingham Palace.

Earlier this week President Obama hosted the first White House Makers’ Faire with over thirty inventors showing their ideas.

All of this contrasts with the Australian Prime Minister Tony Abbott’s recent North America where he touted the country was ‘open for business’ by offering mines and toll roads to Canadian pension funds.

It’s clear some countries’ leaders recognise they live in the Twentieth First Century while others are struggling with Twentieth Century.

Insurers and the internet of things

Microsoft’s partnership with American Family Insurance shows how insurers are adopting the Internet of Things, is the community ready for real time monitoring of risk?

Earlier this week, Microsoft Ventures announced a partnership with American Family Insurance in an accelerator for home automation services.

The insurance industry has an obvious interest in the Internet of Things (IoT) as constant monitoring allows them to make more accurate assessments of risk and quickly adjust policies or premiums when circumstances change.

“We are focused on helping early stage companies bring new products and services to market that can make our policyholders’ homes and lives safer,” Microsoft’s media release quotes Dan Reed, American Family Ventures’ Managing Director as saying.

For consumers and the public at large, there a serious implications of constant monitoring by insurance companies, marketers and government agencies.

As Business Insider points out, Google already holds a massive amount of data on us all with Apple, Amazon, Facebook and Microsoft not far behind.

One of the key questions of the next decade is ‘do we we want our smart smoke detectors spying on us?’ and, if so, do we want it giving that data straight to the insurance company?

The online security pains of a growing business

Stratfor’s humiliating computer hack is a lesson for all businesses about IT security

Possibly the most embarrassing of the outbreak of computer hacks in late 2011 was the breaching of prominent geopolitical analysts Strategic Consulting, also known as Stratfor.

The Daily Dot dissects what went wrong for Stratfor based on a leaked report from Verizon Business who carried out a “forensic investigation” of the hack which the company claims cost them $3.8 million in damages.

While the monetary damages were substantial for a relatively small company, Stratfor’s reputation was probably the greatest casualty as customers’ credit card details were exposed and the firm’s confidential files were distributed by Wikileaks.

The tragic thing is that none of this would have happened had Stratfor followed basic IT security practices, something that every business should be following.

Don’t store credit card details

Probably Stratfor’s biggest mistake was storing customers’ credit card details – there is no reason for saving your clients’ payment details. Ever.

If you’re accepting credit cards, organise a payment service to handle that work for you as they know what they are doing and take most of the management hassles, security and fraud risks.

In most cases, these companies’ fees are no more than manual processing fees that Stratfor and most businesses manually processing payments get hit with anyway.

Password policies

Another basic mistake was that passwords were shared and kept simple; there is no excuse for giving staff the same password to access confidential or critical files and systems.

Similarly, there wasn’t a ‘need to know’ policy; that is, that an analyst has no reason to have access to HR files and the receptionist no need to be looking at sales figures. Sensitive data should only be accessible to those who need it for their day-to-day work.

Remarkably, Stratfor didn’t have any properly configured firewalls and on many computers didn’t have up to data anti-virus protection. All of this made it easy for hackers to get into the network and access confidential information.

The online pains of growing a business

In some respects it’s possible to feel sorry for Stratfor’s management, the report is a classic example of a business that outgrew the IT structure for a one or two person operation founded by men who didn’t understand the risks of the internet.

Today there’s no excuse not to have systems locked down or to lack a company culture that recognises data security as being essential in the modern business world.

Stratfor’s hack was a spectacular example of what could go wrong, but it’s a warning for all businesses about the importance of security in a connected world.

Amazon and the battle for your pocket

Will an Amazon phone succeed in tethering customers to the company?

Today Amazon is expected to launch a smartphone which the New York Times suggests will tether consumers to the company.

With 240,0000 apps in its Kindle store, Amazon will be formidable competitor to Google Android devices and Apple. Like iTunes, Amazon also have a strength in already knowing the customer’s credit card details.

The question is can Amazon be trusted? As we see with the Hachette book publishers dispute, Amazon is a company that’s ruthless in bullying suppliers and has a mandate to do so from its shareholders.

With the smartphone becoming the centre of the connected lifestyle, the stakes are high as whoever controls the customer’s pocket controls the customer’s smarthome, smartcar, retail and health applications.

Of course whoever wins this battle, they’ll still have to pay Microsoft for patents.

Mapping AirBnB in San Francisco

The San Francisco Chronicle mapped the city’s AirBnB rentals showing how both hospitality and data journalism is evolving

The San Francisco Chronicle has a great feature mapping apartment rental service AirBnB’s effects on the city’s economy.

By trawling through the AirBnB database, The Chronicle found 4,800 properties for rent in the city to glean a great deal of information that the company is not keen to share.

A key point from the survey is that over 80% – 3200 – of the properties are householders renting out spare rooms or their places while they are away, which is exactly what AirBnB claim their service is designed for.

The other, professional hosts are what’s attracted the wrath of regulators in cities like New York, where it appears unofficial hotels are skating around taxation and safety regulations.

A new breed of middleman

Catering for these professional hosts has seen another group of middlemen service pop up and The Chronicle features Airenvy, a service that helps landlords manage their properties.

Airenvy is now the biggest San Francisco host, managing 59 properties on behalf of its clients and charging 12 percent commission for dealing with the daily hassle of looking after guests. Since launching in January it employs twelve staff.

Unlike many of the internet middlemen, Airenvy does seem to add value to the renting process above being a simple listing service. For absentee hosts, the fees would seem to be worthwhile in reducing risks and problems.

Filling the gaps

A unique thing about San Francisco is the concentration of hotels around Union Square with 20,000 of the city’s hotel rooms within a ten minute walk of the Moscone Centre.

For non-convention visitors, particularly those visiting family or friends, AirBnB is an opportunity to get a place out of downtown.

The price ranges reflect the service’s diversity as well; from $18 a night for a couch through to $6,000 for a mansion. The average though is close to a typical hotel rate of $226 a day.

The effects of AirBnB

What the survey shows is AirBnB has diversified San Francisco’s accommodation options without the problems being encountered in New York.

That isn’t to say there aren’t problems – the Silicon Valley model of pushing responsibility and consequences onto users leaves a lot of risk for the both the service and its customers – however AirBnB is another example of how industries are evolving as information becomes easier to find.

Another thing this survey shows is the new breed of data journalism and how analysing the numbers can be the foundation of building great stories.

The AirBnB and the changing global travel industry is a great story in itself as the San Francisco Chronicle has shown.

Reinventing business in an online world

Buzzfeed founder Jonah Peretti has some important views on the future of business and online publishing

Jonah Peretti, the founder of Buzzfeed and formerly of the Huffington Post is widely thought of as one of the smartest thinkers in digital media.

In a long interview with the Felix Salmon, the former Reuters journalist and himself one of the savviest commentators on the online space, Peretti discusses the direction of both online publishing and business in general.

“Why do they need so much revenue?” is one of the questions Peretti poses about the recent New York Times’ innovation report and it’s a question worth posing of many organisations – particularly those that are in sectors with declining revenues and margins.

Reinventing organisations

As Yammer founder and now Microsoft employee Adam Pisoni told Decoding The New Economy last year, modern collaboration tools mean modern businesses don’t the need the management layers and staff numbers that older companies needed, this is something that has been lost on many modern media organisations.

Peretti’s views about communications and how stories turn viral is a worthwhile read in itself while his points about fundraising are very pertinent, particularly where he observes that venture capital investors have been reluctant to fund startups which pay writers.

What stands out in the interview is Peretti’s charitable view towards others in the industry, here’s his view on the New York Times’ innovation report.

I did read it. There were a lot of interesting things in it. I think in some places, they were a little bit overly critical of their tech and product team. When you look around the industry, The New York Times has a really great website. They’re building lots of things themselves and integrating them. It doesn’t feel like a Frankenstein website with things bolted on from millions of other places. I was a little surprised at the tone, how critical they were of their web products.

The key question Peretti asks is how do we re-imagine our industries: “What would this be if the readers and the publishers were not focused on making something similar to print?”

Reinventing industry

While Peretti’s question is asked of the newspaper industry, it’s a question that every business can ask itself as manufacturing, marketing and supply chains are being reinvented.

Following that point, Peretti points out the risks in focusing on simple metrics; too much emphasis on one figure can lead to perverse results in the publisher’s view and following a mission rather than chasing a number is a much better strategy to long term success.

As Salmon says in the introduction, there’s a lot to learn from Jonah Peretti about where the internet and digital media is taking the publishing industry and the business world in general.

The high cost of failing fast

There can be real human costs to failing fast as the history of Twentieth Century aircraft shows

It’s fashionable to talk about innovation and failing fast but exploring new technologies has always carried a great deal of risk as a BBC feature on failed aircraft design shows.

Aviation, like automobiles, was a wonderful opportunity for early Twentieth Century tinkerers. With the added impetuous of two world wars, the development of aircraft saw some strange experiments.

One of the things that drove aviation innovation was the evolution of materials science and manufacturing methods, sometimes with tragic results as we saw with the Comet jet liner’s fuselage failures and the DC-10s defective cargo door latches.

In many ways, the early days of airliners was not dissimilar to today’s experiments with smart materials and 3D printing.

Tragedies like the Comet and DC-10 should remind us that in some field the cost of failure is high.When a widget breaks, people can get hurt.

As we experiment with new materials and manufacturing processes, we will make mistakes just as the aviation pioneers did. It’s an ethical aspect of innovation we need to keep in mind, there can be real costs to failing fast.

Image of De Havilland Comet by Clinton Groves through Wikipedia