Webware

Telefonica Europe on Wednesday announced that it has acquired voice over Internet Protocol and telephony service Jajah for $207 million in cash.

Reports of the sale and its price had begun to circulate several days ahead of the official announcement. There were also rumors of an ongoing bidding war between Cisco Systems and Microsoft, which were competing with Telefonica for the sale.

Telefonica is a business division of a company most consumers know as O2. It counts some 48.6 million customers as part of its communications business. Jajah, which has several services for consumers, also has business offerings for small business and enterprise users. Jajah says these services will continue to operate as they did before, remaining unaffected by the acquisition.

This one's a surprise. Twitter will have turned a profit in 2009, a BusinessWeek report claims, citing sources. What happened? Search deals with Google and Microsoft brought in a nice chunk of cash for the company, which has raised well over $100 million in venture capital and has a paper valuation floating somewhere around $1 billion.

Considering the company has not yet put forth a long-term revenue strategy, this would be one of those Christmas miracles along the lines of a neurotic mom getting home to her stranded 8-year-old by fortuitously hitching a ride with a polka band fronted by John Candy.

So let's look at the details. Sources told BusinessWeek's Spencer Ante that Twitter's search deals with Google and Microsoft's Bing brought in $15 million and $10 million respectively, and that Twitter has managed to cut some of the high costs related to text-message functionality. (These costs were so exorbitant that Twitter temporarily had to restrict some international SMS codes.) OK, cool. Those numbers are decently plausible, and Twitter's strategic hire of a mobile business-development dude early this year likely had something to do with it. And Ante's article makes it clear that while sources have told him that Twitter will end 2009 on a profitable note, that doesn't mean it's going to be profitable next year.

But there's a difference between being cash-flow positive and being profitable, and it's also not totally clear as to what Twitter's other expenses are, or what they will be next year.

Ante writes:

Now that Twitter has become so popular, it has gained bargaining power with telecom companies and has managed to renegotiate so many deals with carriers that the company pays far less for the services. "Those used to be the biggest line item," says one source. "Generally speaking, those costs have gone away. Now people are the biggest line item."

People. Yes. Like the new office space they just moved into, and their still-expanding payroll, and stuff like that. Also: hardware, and other forms of defensive weaponry against evil whale attacks. The company also sometimes buys stuff, and continues to develop new features--like the current test of "contributors" accounts that it may end up charging for. So even with costs cut via a savvier mobile strategy, there are plenty of other costs that could be escalating simultaneously.

What's good news for Twitter is that getting $25 million out of search deals (if that's indeed true) shows that the company could expand that into a stronger long-term revenue strategy. Critics have been lukewarm on the possibility of Twitter attempting to support itself with advertisements or paid accounts, and nobody's really gone into depth on the question of whether the businesses currently raving about Twitter's power of "conversation" will cough up for more in-depth analytics.

What Twitter's homepage looked like before it went down on Thursday night.

(Credit: CC u07ch/Flickr)

Twitter stumbled again overnight on Thursday. But this time, it wasn't the work of the "fail whale," the cuddly cartoon personification of the site's excessive technical baggage. Rather, the site was replaced with a foreboding message from "Iranian Cyber Army" before crashing entirely, indicating that it had been the victim of a malicious attack that targeted its internal servers.

Co-founder Biz Stone posted a brief clarification on the issue late on Thursday night. "Twitter's DNS records were temporarily compromised tonight but have now been fixed," he explained. "As some noticed, Twitter.com was redirected for a while but API and platform applications were working. We will update with more information and details once we've investigated more fully."

At the risk of sounding like an evening-news anchor calling attention to exactly how dangerous your treadmill is or how many diseases you can get from the ball pit at Chuck E. Cheese, I think it's time to explore the question: Is it safe to use Twitter?

For one, Twitter's track record with security has been shaky at best. A security flaw this spring exposed the data of a number of employees and allowed a hacker to pilfer some internal documents. Several high-profile accounts, like those of Britney Spears, Ashton Kutcher, and CNN anchor Rick Sanchez, have been targeted individually. Twitter has been the victim of phishing attacks. Other hackers have proved that Twitter accounts can be set up specifically to corral botnets of infected PCs. And in perhaps the biggest incident of all, a politically motivated denial-of-service attack in August that targeted multiple social-media sites managed to cripple Twitter entirely.

Think of it this way: if Facebook, a far bigger and more mainstream site that's had concerns about user privacy splashed all over the news recently, saw its homepage replaced with a nefarious political message, there would probably be a fresh round of calls for CEO Mark Zuckerberg's resignation. Twitter's heavy users are, for better or for worse, accustomed to sporadic downtime and glitches. They're also less likely to ever visit the Twitter.com homepage, considering the service has so many points of entry--text message, as well as third-party apps for mobile, Web, and desktop. Users have become accustomed to logging into third-party applications with their Twitter credentials.

That, perhaps, makes the overnight hack a bigger concern. Even though it's unlikely that user accounts were compromised in this DNS redirect, it's yet another sign that Twitter's security operations have time and again proven weak enough that the service doesn't exactly seem watertight.

A political message, or just plain obnoxious?
On the other hand, we still don't know much about this attack and it may have been less sophisticated than some may fear. One, nobody's exactly sure yet who the hackers were. "Of course, just because a message saying 'This site has been hacked by Iranian Cyber Army' has been posted on a Web page does not necessarily mean that hackers from Iran are responsible for the defacement," Sophos security consultant Graham Cluley wrote on his blog Friday.

Additionally, Cluley said, the aim seems to have been to either get a political message through or to simply be obnoxious. "Fortunately there is no indication at this point that the page was carrying malicious code, and this attack appears to have had political motivations rather than being designed to steal confidential information from users," he wrote.

"It really looks like it was people were redirected to a 'hactivism' site," weighed in fellow Sophos analyst Beth Jones via e-mail. "There was no malicious code on the site claiming to be the 'Iranian Cyber Army' either. It looks like they just hacked the registrar to redirect traffic. So it's quite probable that none of Twitter's own servers were touched."

Another reassurance is the fact that Twitter simply doesn't have the kind of sensitive data that a Facebook or Google does. While it does have millions of mobile phone numbers stored to power its text-message app, not to mention archived private "direct messages" between users, Twitter does not index a whole lot more that isn't otherwise public. Facebook, for example, has many members' credit card numbers on hand (if they've ever used its "gift shop" feature), not to mention extensive personal data in profiles like addresses, birthdays, and family connections. Members who are still concerned about the security of their Twitter accounts can take the obvious step of changing their Twitter passwords to something that they don't use on their e-mail, Facebook accounts, or elsewhere--just in case.

Beth Jones says she has confidence in Twitter. "I wouldn't say their security is second-rate by any means," Jones said via e-mail. "As it stands, they weren't actually compromised, but I can see from a user point of view the questions and concerns. At Sophos we see a new site compromised every 3.6 seconds. That's easily close to 24,000 sites a day, and of those, the vast majority are legitimate sites that get hacked."

That doesn't mean that Twitter shouldn't start making it more clear that it takes security seriously. If the company, which is now beta-testing a "Contributors" feature that may pave the way to paid corporate accounts, begins storing financial information, we can only hope that their security operations are turned up a few notches. Or, ideally, an order of magnitude.

This post was expanded at 6:23 a.m. PT with comment from Sophos' Beth Jones.

Gmail's new merge tool can get rid of all your dupes at once.

(Credit: CNET)

Gmail on Tuesday introduced a new feature that lets users remove every single duplicate contact entry at once. Previously, users had to go through their address book one at a time--a process that could be both tedious and time-consuming.

The new system runs a simple scan on your contacts, and provides a one-button solution that will merge the information for each contact. This is a non-destructive method, and the same that's carried out each time you run the normal duplicate checker. Contacts with multiple e-mail addresses just show up as the same contact in Gmail's auto-complete suggestions.

Google is promoting the new tool as a way to take contact lists that have been imported from elsewhere, including mobile phones or other e-mail services, and shrink them down into something more manageable. The company also says it was one of the top-requested features by its users.

The bulk de-duper comes some 10 months since the release of the original de-duper, a feature we were the first to report on in our six upcoming Gmail features story from January. Still missing from that list is HD video chat. However, those that made it include larger attachment sizes (which were quietly bumped up to 25MB in June), and a custom theme creator.

The groups responsible for standardizing the language used to build Web sites have begun tackling technology to provide a direct interface to Webcams.

The World Wide Web Consortium has begun work on the HTML Device addition to the Hypertext Markup Language specification. "The device element represents a device selector, to allow the user to give the page access to a device, for example a video camera," according to a December 11 draft of the specification.

The move marks another step expansion of the scope of the Web standard. Advocates are trying to make it a foundation not just for static Web pages, but for interactive Web applications; the latter benefits from the direct access to hardware that applications running natively on a PC enjoy.

HTML is jointly overseen by two groups, the World Wide Web Consortium and the less formal WHATWG (the Web Hypertext Application Technology Working Group) that branched for a long interlude when the W3C wasn't interested in HTML. Ian Hickson, a Google employee, is editor of the new HTML5 specification under development. The HTML Device specification, though is part of a broader HTML effort.

The WHATWG draft of the HTML Device specification has wider options, including interfaces to "a USB-connected media player" and an RS232 port, the latter an ancient standard, in computing-industry years, for serial communications.

But, the draft WHATWG specification cautions, "RS232 is only included below to give an idea of where we could go with this. Should we instead just make this only useful for audiovisual streams? Unless there are compelling reasons, we probably should not be this generic. So far, the reasons aren't that compelling."

(Credit: Seesmic)

On Monday, Seesmic released an update to Seesmic for BlackBerry, a Twitter app that first debuted in late November.

Back then you had to download Seesmic from the company's Web site. Now you can get it directly from BlackBerry App World online or from the App World app on your smartphone.

Although Seesmic's interface is a bit light on features--like support for multiple accounts--it has added some enhancements that better integrate its Twitter app with the BlackBerry ethos. Chief among these are compliance with the BlackBerry's spell checker and auto-corrector, which will both help keep you from misspelling tweets or forgetting to capitalize an "i." The app has also become sensitive to keyboard shortcuts. In addition to the usual BlackBerry shortcuts T and B, to take you to the top and bottom of the page, are R to reply, D to send a direct message and F to retweet. Here is the full list of mapped shortcuts.

You can now vary your font size among small, medium, and large fonts. Seesmic for BlackBerry also lets you mark a tweet as a favorite in your timeline, but doesn't yet have a dedicated Favorites screen. In addition, Seesmic is now available for phones running 4.5 of the BlackBerry's operating system.The previous build, version 1.0.6 beta, only worked on BlackBerrys 4.6 and up.

You can view the change log for more details, and can try Seesmic's take on Twitter for free on Windows and Mac.

eBay may have recently sold off Skype to the highest bidder, but the VoIP app for desktop and mobile is still in development.

On Thursday, Skype announced Skype 4.2 for Windows beta and a new beta build for Symbian phones. Skype 4.2 beta for Windows desktop users is small as updates go, reinstating Skype Access--a Wi-Fi hot-spot connector--and call transferring that Skype had removed when overhauling its app and updating to version 4 (now in version 4.1), a build that includes screen-sharing.

You can scrutinize the full release notes here.

In addition to tightening up Skype for the desktop, the company announced it will issue a limited beta release for Symbian Series 60 handsets. There's compatibility for 17 Nokia handsets at launch, with use on more phones on the way.

The feature set is basic at present, with just the following features in place:

• Free Skype-to-Skype calling
• Call phones with Skype credits or subscription
• Receive calls on your online number
• Instant messaging
• Group conversations
• File sending and receiving

Mozilla Messaging pushed the stable release of Thunderbird 3 out of the nest on Tuesday, and there's a lot to like in case you haven't been following the beta development of this Outlook alternative. The long-overdue Thunderbird 3 is available for Windows, Mac, and Linux, and it introduces several hefty new features and some long-needed improvements, including an overhauled search and message indexing, tab support, and a revamped setup wizard that's designed to make new account setup quick and painless.

One feature that isn't included is the calendaring add-on, Lightning. Originally, Mozilla had planned to bake the extension into the program, but decided back in February 2009 to change course and leave it up to users to download. Although Thunderbird natively comes with Microsoft Exchange support, there's no calendar and therefore no meeting support in the default Thunderbird installation. Along with Lightning, there's an essential Google Calendar add-on for Lightning that gives Google users calendar support in Lightning. Currently, the only version of Lightning that works in Thunderbird 3 is the nightly build, available here.

Even without Lightning, Thunderbird makes for an excellent desktop-based e-mail client. Beyond Outlook replacement, it also makes a savvy offline or local-storage tool for the various Web mail providers. Gmail integration has existed in Thunderbird for a while, but improvements in version 3 include better recognition and integration of Gmail's special folders. These include Sent and Trash, and the non-English versions of Gmail. The All Mail option in Gmail defaults in Thunderbird to the Archives folder.

Thunderbird 3's new search results pane.

(Credit: Screenshot by Seth Rosenblatt/CNET)

Undeniably, the killer feature in Thunderbird 3 is the search. The most obvious competitor, Microsoft Outlook, doesn't offer anything that comes close to the level of granular control that Mozilla has given Thunderbird users. The new search bar is dominant at the top of the interface, and is set by default to search all messages. When you search, a new tab will open with your results organized as shown in the screenshot above. Filters based on e-mail addresses, folders, and tags appear on the left, while the majority of the window is given over to displaying summaries of the e-mails that meet your criteria. There's also a timeline bar graph at the top of the results. Click it, and then mouse over any of the subcategories to see how they occurred over time.

You can change the search box to one of several filters, including Subject, From, Recipient, To, CC, and Message Body. Frustratingly, you can't filter by Tag. You can also save any of these filtered searches as a virtual folder. Editors' note: The previous two paragraphs have been rewritten for clarity.

The new search bar drops down with options, but also can do predictive on-the-fly queries similar to the URL bar in Firefox 3.

(Credit: Screenshot by Seth Rosenblatt/CNET)

There is one drawback to the search: the first time it indexes your messages, you're potentially in for a long, long wait. In testing, this depended entirely on the number of messages in your folders. High volume accounts, whether locally archived or all on a server, should probably set their indexing to run overnight. After the first indexing, each new e-mail is added as it comes in.

E-mails open by default into new tabs, making the e-mail reading experience far more similar to the Web-browsing one. This can be toggled under the Advanced section of the Options, under the Reading and Display tab. The hot keys for the e-mail tabs have been mapped the same as in Firefox, so middle-click an e-mail to open it in a new tab but retain your focus on the current tab. The CTRL+Tab hot key combo will cycle through your tabs, and there's an open tab button on the right side of the tab bar to help manage your tabs.

There's a new activity manager that records all interactions between your e-mail provider and Thunderbird, making it easier to track down errors when you send or receive mail. There's also an entirely new system for archiving messages based on Gmail's "archive and forget it" method. The new version offers the traditional multiple-folder-based solution, as well as the new dumping-ground style, which can be activated via the "A" hot key. Thunderbird 3 supports Firefox personas, too, further reinforcing their shared architecture.

Thunderbird 3 beta 4 introduces tighter folder integration for Gmail users.

(Credit: Screenshot by Seth Rosenblatt/CNET)

Other changes include major code improvements. The setup wizard now looks to mozillamessaging.com for additional information on how to configure the account. This changes how new Web mail accounts are created. Mozilla has said that only the domain name from your e-mail address gets sent to Mozilla's servers, and that the entire process falls under the Mozilla's privacy policy. Nevertheless, it's a move that's likely to cause some concern among privacy advocates.

The compact header mode has been deleted, which is sure to annoy those who like using Thunderbird on smaller-form computers like Netbooks. Windows users should see Thunderbird results appearing in federated searches in Windows Vista and Windows 7, while Mac users will find Growl notification support for new e-mails, integration with Spotlight and the Mac OS X address book, and support for Mail.app. The full changelog for Thunderbird 3 can be read here.

Thunderbird 3 rates as a top-notch e-mail client, and it's definitely the best freeware one around. It will require some fidgeting to get it to be usable in a corporate environment, but it's far more scalable to user needs than anything else currently available.

Google, probably the most prominent advocate of moving traditional productivity software such as word processors online, acquired a small company called AppJet whose EtherPad service fits into that agenda.

AppJet announced the Google acquisition Friday. "The EtherPad team will continue its work on real-time collaboration by joining the Google Wave team," the site said.

AppJet offered free and premium versions of its service, which could import Microsoft Word documents, Web pages, PDFs, and plain text files, and let groups of people edit them collectively on what it called pad. A "time-slider" feature let people look back at earlier incarnations of a pad.

Google Wave has similarities. It's a sort of hybrid between instant messaging, wikis, and e-mail. Google Chief Executive Eric Schmidt sees Google Wave as the future of collaboration, in particular given its intrinsically networked nature and its real-time view of what collaborating people are up to.

That real-time collaboration is a thorny problem. It can be difficult to permit multiple people permission to edit the same document at the same time while ensuring one person's changes don't interfere with another's work. And showing simultaneous work complicates a service's user interface, too.

Google Docs--the online word processor, spreadsheet, and presentation services--also offers some simultaneous editing abilities. AppJet dings it in its EtherPad FAQ.

"With Google Docs it takes about 5 to 15 seconds for a change to make its way from your keyboard to other people's screens," the site said. "Imagine if whiteboards or telephones had this kind of delay!"

Google Wave and Google Docs are perhaps the closest rivals to AppJet, but in the big picture, the rivalry is between cloud computing and the way most people use productivity software today, on their PCs. Notably, though, Microsoft is working on an online version of its dominant Office suite.

Current EtherPad users should brace themselves for the end of the service: "If you are a user of the Free Edition or Professional Edition, you can continue to use and edit your existing pads until March 31, 2010. No new free public pads may be created. Your pads will no longer be accessible after March 31, 2010, at which time your pads and any associated personally identifiable information will be deleted," AppJet said.

That left one user, JavaScript programmer and jQuery project creator, John Resig, unhappy.

"Super-lame that Etherpad is shutting down. We used it all the time for jQuery planning," Resig said in a tweet on Friday.