Most of these executives worked in organisations where IT departments had waged war on employees connecting their own equipment to the corporate network, so this was a serious development in the computing world.

In many ways employees had been bringing their own technology devices to work for years. It was, and still is, quite common to see public servants and those working for other bureaucratic organisations arriving at meetings with an underfeatured work supplied handset and their own smartphone.

IT managers hated this as they saw those private devices as a security risk and another headache for their overworked staff to deal with.

When the iPod was enthusiastically adopted by the executive suite, the game was over for those IT managers. Suddenly they had to deal with these devices and the issues involved.

At a seminar run by systems integrator Logicalis earlier this week looked at some of the issues around BYOD for companies. What was striking in their presentations were the need for HR and legal departments to be part of the process for adopting this philosophy.

The BYOD philosophy is a big jump for organisations as it means relaxing controls on employees and for many managers that is the biggest challenge.

Part of that challenge is controlling the organisation’s data on devices that could be going anywhere and doing anything.

While companies like Logicalis and Citrix address this with remote desktop applications that create a virtual Windows desktop on the employee’s device, networking giant Cisco offer their ISE devices to run “identity services” that set up rules controlling what staff can access and where they can access it from.

Cisco Australia’s Chief Technology Officer Kevin Bloch gave a good round earlier this week up of where they see BYOD driving business. To Cisco, the move to mobile devices is irresistible as shown in their Global Mobile Data Traffic Update.

Interesting both Kevin and the Logicalis speakers see BYOD as being part of the recruitment process. Increasingly younger workers expect they will be able to use their own devices rather than relying upon employer issued workstations and mobile phones.

According to Kevin, Cisco’s research is finding many employees would trade salary for the right to bring their own device which is something that should grab the attention of budget constrained managers.

This also ties into other employer trends such as Activity Based Workplaces where companies provide hot desks and staff are expected to store their items away at the end of each workday.

Ross Miller of the GPT Group described how this is another trend driving the paperless office as staff using hot desks find packing away files and paperwork each day is an unnecessary hassle.

What we’re seeing with businesses adopting BYOD policies is a big change in the way places operate and this has consequences for all divisions of an organisation from HR and legal through to marketing and corporate affairs. It’s a genuine game changer.

How the BYOD philosophy is changing business is good example of technology driving our habits and work practices in ways we don’t always anticipate.

One thing is for sure, the workplace of the future is far more autonomous and diverse than those we’ve been used to for the last hundred years, the businesses who don’t adapt are those being left behind.

The term is necessary though as many online business models are based upon giving away a service or information for free. For those businesses to survive, they have to find a way to “monetize” their user base.

When Google were floated in 2003, the question was how could a free search engine “monetize” their users. The answer was in advertising and Google today are the world’s biggest advertising platform.

Facebook’s Inital Public Offering (IPO) announcement raises the same question; how does a company valued 99 times earnings find a way to justify the faith of its investors?

Advertising is the obvious answer but that seems to flattening out as the company’s revenue growth is slowing in that space. The AdWords solution tends to favour Google more than publishers as most advertising supported websites have found.

Partnering with application developers like the game publisher Zynga is another solution. Again though this appears to be limited in revenue and Zynga itself seems to be having trouble growing its Facebook user numbers.

So the question for Facebook is “where will the profits come from?”

There’s no doubt the data store Facebook has accumulated is valuable but how the social media service can “monetize” this asset without upsetting their users is open to question.

For Facebook the stakes are high as the comparisons with Friendster and MySpace are already being drawn.

We’ll see more partnerships like the Facebook Anti-virus marketplace, but these seem to be marginal at best.

In the next few months things will get interesting as Facebook’s managers and investors strive to find ways to make a buck out of a billion users who don’t pay for the service.

While “monetization” is an ugly word, it is one that every online company thinks about.

Every web based businesses will be watching how Facebook manage their monetization strategy closely as the entire industry struggles with the faulty economics of providing services for free.

While the Flashback malware – the earlier versions could be described as a computer Trojan Horse while the later editions are more like a computer worm – is a real risk to Mac users and it’s important to take this risk seriously.

The Netsmarts business site looks at how Mac and Windows users can protect themselves from Flashback and its variants.

One of the key things in the advice is to make sure anybody using the computer has limited rights; as a Managed User on the Mac and as a Limited User in Windows. This dramatically reduces the opportunity for bad things to happen while online.

I’ve discussed previously while user privileges are one of the reasons why the Mac has historically been less prone to infection to virus infections than their Windows cousins.

Microsoft made the decision in the 1990s not to tighten Windows’ security settings and their customers paid the price for the next decade. This was compounded by some poor implementations of various technologies in Microsoft Windows.

This isn’t to say the Mac, or any other computer system, doesn’t have security bugs. Every operating system does and it’s a conceit of everybody immersed in new technologies, be it cloud computing back to horse drawn chariots, to believe their products are magically infallible.

Part of the crowing from the security experts and charlatans who’ve been desperately predicting a “Macapocalypse” for nearly a decade overlook this.

Even with the proven problem of the Flashback virus, its unlikely we’re see the deluge of malware like that of the early 2000s simply because the Mac OSX, Windows 7 and all the other mobile and computer operating systems don’t have the structural flaws that Windows 98, ME and early versions of XP had.

Much of the Mac versus PC argument in security is irrelevant anyway; the main game for scammers and malware writers has moved to social media services like Facebook and this is where computer users need to be very careful.

However the stereotype of the “Smug Mac” user was true, one caller to my radio show claimed he didn’t have a problem with spam because he had a Mac. Nothing could convince him that email spam wasn’t related to the type of computer you used.

To be fair to Apple they never made the claim their computers were invulnerable to malware, apart from the odd dig at Microsoft. Their users did it for them.

That type of smug Mac user are those who do need a wake up call. For the industry though, it’s business as usual although some will be feeling a little smug their hysterical predictions of the last decade came true in a small way last week.

Some of the topics we’ll discuss include;

• What is the Flashbook Mac Trojan
• How to protect Mac and Windows computers from threats like Flashback
• What is a DNS Changer and why should you care?
• How to protect yourself from computer Trojans and other malware
• How to spot a security charlatan
• Why you should not accept every Facebook friend request
• What is “social spam”
• How politicians are using Facebook

If you’d like to learn how to protect your Mac or Windows computers from malware, visit our Netsmarts article on the Flashback virus that explains the security settings and suggests some free anti-viruses.

Listeners’ Questions

While we had a great range of calls from listeners, there was only one we promised to get back to. Kay clearly has a virus infection on her Windows computers and we recommend the free MalwareBytes program to clean it up.

Our IT Queries site has more instructions on cleaning up a virus infection if you’re worried about a sick computer.

We love to hear from listeners so feel free call in with your questions or comments on 1300 222 702 or text on 19922702.

If you’re on Twitter you can tweet 702 Sydney on @702sydney and Paul at @paulwallbank.

Should you not be in the Sydney area, you can stream the broadcast through the 702 Sydney website and call in anyway.

The sheer size of Apple’s cash reserves also illustrate how profitable the outsourced manufacturing model is as well the contradictary nature of special pleading by affluent corporations.

Moving a cash mountain

Not only is Apple’s business insanely profitable, but sales are growing exponentially. In the company’s conference call, CEO Tim Cook reported that 37 million iPhones sold last quarter and 55 million iPads sold in the last two years.

Apple’s CFO Peter Oppenheimer pointed out the company’s cash reserves increased $31 billion in 2011 and 2012 is on track for a similar result in 2012, leaving them plenty of money for investment along with a “warchest for strategic opportunities”.

Paying a dividend

The reluctance to pay dividends has been a feature of the US corporate for the last few decades and Apple are certainly not alone in not distributing their profits to shareholders.

Companies like Microsoft, Google and Oracle -even Yahoo! once upon a time – have been just as profitable as Apple and their efforts to shrink their cash mountains has had some perverse effect.

Many of these companies have squandered suprpluses on poorly thoughtout and badly executed buyouts of smaller businesses, this urge to avoid returning money to owner has been one of the drivers of the Silicon Valley VC Greater Fool model.

Another result of fat profits is the rise of flabby, overstaffed management ranks at some of these companies. Although this certainly isn’t the case at Apple where Steve Jobs ran a very lean machine.

The retail model

Unlike their major tech competitors Apple is a manufacturing and retail business as well. In 2012, 40 new stores are planned around the world.

This vertical control of their markets, from the beginings of the supply chain  to “owning” the end customer is anathema to modern MBA thinking and probably the area that gives them the greatest competitive advantage over their hardware competitors.

Justifying Mike Daisy

In some ways this announcement justfies Mike Dasy’s discredited criticisms about Apple’s Chinese suppliers.

The reason for manufacturing these goods in places like China, India or Vietnam is the vastly cheaper cost of doing business, not just in labour rates but in reduced environmental and safety standards.

Plenty of brand name clothing, footware and fashion accessory companies make similar massive profits to Apple with their ten, twenty and sometimes hundred fold markups on their products.

Repatriating profits

One of the big changes of Apple repatriating money is that is undercuts the special pleading by these extremely profitable companies that they should have a US tax holiday so they can repatriate their riches.

It’s now clear these companies can easily afford to pay the taxes of their home countries and it’s time they started to, along with returning dividends to their shareholders.

Once again Apple have changed the way others do business, how these changes affect the way we invest and governments treat companies is going to be one of the most interesting developments over the next decade.

Micheal Dell, CEO and founder of Dell Computers, hopes to grab some of the tablet computer market from Apple with the release of Microsoft Windows 8.

It’s a big goal – Apple have owned the tablet computer market since launching the iPad.

Dell, along with most of the other PC manufacturers, squandered the decade’s head start they had in tablet computers with poorly designed and overpriced tablet PCs which were based around a clunky version of Microsoft Windows using styluses.

Part of the problem was Windows itself; the operating system was designed for desktop users and to make it work on tablet computers it required a clunky workaround. Being designed for smart phones and tables mean Windows 8 may overcome previous limitations.

But Dell have a problem; they are perceived as a low price, low quality supplier and have a competitor in Apple that has locked in the supply chain for the product.

So Dell will struggle to beat Apple on price while customers believe the Dell system is inferior.

Even more difficult for Dell is their support reputation, a quick look at the comments to the Bloomberg story illustrates the problem.

Of the the sixteen reader comments, admittedly not a scientific sample, three business owners claim they will never buy Dell again after customer support issues.

This is the critical mistake Dell’s management made in the 2000s – in order to cut costs so they could be profitable at lower price points they trashed their support.

Eventually this culminated in the Dell Hell debacle where Jeff Jarvis’ experience summed up the frustrations of thousands of Dell’s disillusioned customers.

Apple on the other hand chose not to go down the rabbit hole of cheap and nasty systems. Today they can offer free, and skilled, support in their genius bars as their fat margins allow them to provide constructive and helpful assistance to their customers.

Now Dell has the reputation for at best indifferent after sales service which means they are locked into competing on price and ever declining margins.

It’s not a good place to be for Dell but that’s what you get for treating your customers like an unnecessary nuisance while fixating on headline prices.

We often talk about the Internet’s long tail; our online reputations could be the longest tail of all.

We all believe we have the right to be rich so the quick, easy option and the promises of those that say we can be wealthy by simply handing over a modest amount of money or trusting our investments to someone else is a tempting offer.

Deep down we know we’re being scammed.

Right now nations are on the verge of collapse because politicians promised easy wealth, corporations skirt bankruptcy because executives were entitled to bonuses regardless of performance and in the suburbs desperate people clinging to the middle class lifestyle they believed was theirs by birthright fall for get rich quick scams.

Just as the railways opened up opportunities for snake oil merchants in the 1850s and cheap telephone systems gave rise to the boiler room ripoffs of the 1970s and 80s, social media tools open up a whole new range of possibilities for the sneaky to fool the gullible or desperate.

Naturally we’ll get the nanny goats and nincompoops demanding something be done about Internet scams – maybe a law, perhaps a treaty or a code of conduct – all of which will be as effective as stopping railways, telephones or the postal system in an effort to stamp out fraud.

Fraud is technologically neutral; fraudsters just use whatever happens to be the most effective tools available at the time.

The sad thing with the social media based scams is we get to see who among our friends and family have fallen for it. Invariably when we warn them we’re told off because we aren’t believers.

Again though this is nothing new, the same thing happened when the snake oil merchant came to town or the shaman visited the village.

In the 19th Century the phrase “there’s a sucker born every minute” was coined. In today’s hyper connected world, there’s one born every second. Don’t be that sucker.

Creating another version of Windows risks further confusing the marketplace given Microsoft already has between its four different versions of Windows and six flavours of Office.

Although Apple haven’t suffered at all by having different operating systems. Mac OSX is more popular than ever and iOS dominates its markets.

Perhaps its time for Microsoft to copy something else Apple did and have a clean break – rework all the Windows code and build a new system.

Apple did this when they introduced OSX in 2001. Among other things it didn’t support floppy disks, the Apple Device Bus, floppy disks or the networking standards used by the older systems. At the time there were howls of protest from long suffering Apple true believers who had invested a lot into the earlier versions of Mac OS.

Despite the protests and early hiccups – we sometimes forget that the first version of OSX, named Cheetah, was terrible – Apple’s clean break with the past was a great success.

Microsoft’s selling point has been backward compatibility; software designed for one version of Windows is expected to work on the next version.

Backward compatibility is the reason for the spyware epidemic of the early 2000s as Microsoft ignored Windows XP’s security features so that they wouldn’t have to ditch older code in other products like Office.

Similarly, the contradiction of redesigning the Windows operating system while minimizing disruption to existing users was one of the reasons why Microsoft Vista was such a disaster.

Perhaps it’s time for Microsoft to bite the bullet and bring Windows into the 21st Century.

Whatever they decide to do, they better hurry as Apple and Google are carving out dominant positions; waiting until 2013 or 14 for the next version of Windows and Windows Phone may be too late in a market where Microsoft is quickly becoming irrelevant.

Such graphs starkly illustrate how the industry is changing as people start using tablet and smartphones instead of their PCs but there are some caveats with making blanket comments about the death of the Windows based computer.

Sales are still huge

One important thing about the chart shown is it has a logrithmic scale – a doubling in height indicates ten times the sales.

That point alone shows just how massive the lead Windows had over 15 years from the mid-1990s, something that is shown in a previous Asymco chart.

Despite Gartner’s reported 1.4% fall in PC sales – the basis of the Asymco graphs – there are still 92 million personal computers sold each quarter so it is still a massive market.

Tethered devices

One of the weaknesses with smartphones and tablet computers is they are still tethered to the desktop. If you want to get the best experience from your phone or iPad you have to synch it with your home or office computer.

For the moment that’s going to continue for most users, but not forever and the extended life of PCs means customers are using older computers to connect.

Extended life cycles

A bigger problem for the PC manufacturers is the extended life cycle of personal computers.

Since the failure of Microsoft Vista, PC users have been weaned off the idea of replacing computers every three to five years and nearly half the market is using systems that are more than ten years old.

On its own that indicates fundamental problems with the Windows and PC markets for Microsoft and their manufacturing partners.

The irrelevant operating system

One of the effects of increased computer life cycles is that the operating system has become irrelevant. Customers no longer care about what they are using as long as it works.

This is one of Microsoft’s problems; the virus epidemic of last decade and various clunky versions of Windows Phones has left customers perceiving PC and Windows software as being clunky and buggy.

Not yet dead

While the PC market is now shrinking, it’s far from dead. There’s still a huge demand to cater for although the big growth days are over.

For manufacturers whose business model has been based on fighting for market share in a growing sector, they now have a problem. They have to identify profitable niches and generate innovative products.

Unfortunately for the PC industry, the market has moved on. Apple have captured the bulk of the high margin computer sector and the industry’s response of pushing “ultrabooks” to capture the MacBook Air customers isn’t going to resonate with consumers trained to buy cheap systems.

Watching the PC industry over the next five years will be fascinating. Some companies will adapt, others will reinvent themselves and many will fade away as they cling to a declining business model.

Despite the personal computer industry only being 30 years old, it’s already in decline which is something older industries should ponder upon.

This wouldn’t be good news for Microsoft as their struggle to retain their almost monopoly position in corporate desktop applications and will undoubtedly mean reducing licensing fees and accepting tighter margins on their products.

BBVA’s move is interesting on a number of fronts although there’s a few myths among the trend towards cloud computing services and office productivity.

Cost saving myth

Part of the focus of selling these products is on cost and the head of Google Enterprise apps in Europe, Sebastien Marotte, said that his corporate customers on average achieved cost savings of between 50% and 70%.

The cost aspect is interesting, I’ve posted before about exaggerated claims for cloud computing savings, and Marotte’s statement deserves a closer look.

It’s highly likely the claimed cost savings are based on licensing – the standard Google Apps cost of $50 per user per year is substantially less than even the discounted rates large corporations receive on Microsoft licenses.

While the licensing cost is a serious line item, particularly when you have 110,000 employees, it isn’t the whole story; there’s training, maintenance, disaster recovery, security and a whole range of other issues.

Cloud computing services address a lot of those costs, but nothing like the order of 50 to 70%. In fact, it would be hard to find an enterprise that had the sort of slack in its IT operations to achieve those sort of savings.

In one respect, this is where its disappointing that cloud computing vendors tout those sort of savings – not only does it commoditise their industry but it perpetuates the myth amongst executives that IT staff spend the bulk of their time playing video games.

While there are real savings to be made for businesses switching to cloud computing, any sales person claiming a 50% or greater saving should be asked to justify their claims or shown the door.

Clean slate

Another interesting point with BBVA switching to Google is how the bank wants employees to leave all their old email and data in their old systems. Carmen Herranz, BBVA’s director of innovation, says we “want to start from scratch… don’t want to carry across old behaviours”.

Not migrating data is an interesting move and how BBVA’s users deal with retrieving their contact lists, dealing with existing email conversations and how staff will deal with feature differences like document revision tracking – an area where Microsoft Office outdoes Google Docs.

Internal use only

BBVA are only applying the Google services to internal documents as well which means the bank will be using other software – probably Microsoft Office – for corresponding externally.

This makes it even more unlikely the touted cost savings of 50 to 70% are achievable, and may actually increase support costs while reducing productivity as many customer facing staff will have to deal with two systems.

Having one system for use inside the business and another for external communications seems to be a European trend – before Christmas French company Atos announced it was abolishing email within the company but still using it for outside messages.

Both abolishing email and moving to cloud based office packages are really about improving productivity in a business while cost savings are nice, the main focus on adopting cloud computing – or any other new technology – should be on freeing your staff to do more productive work.