economics

A number of blogs pointed us today to news that mobile payment company Square is dropping the $.15 per transaction charge for any business using its mobile payments device and service. Square previously charged 2.75 percent of each transaction amount plus a flat $0.15 per transaction fee.

On the one hand, this is not that big of deal considering that the 2.75 percent is where the bulk of the company's revenue will eventually be made as higher-ticket purchases become more the norm. And, if you consider that 2.75 percent of $5 is $.13, the company … Read more

A cyberattack against Canada that tried to access classified government information and forced two key departments to go offline has been traced back to China, according to a story today from CBC News.

Sources told the CBC that the attacks were initially discovered in early January but that it's unknown whether the attackers themselves were in China or just directed their attacks through the country to hide their true source.

Specifically, the attacks reached computer systems at the Canadian government's Finance Department and Treasury Board in an attempt to capture passwords for government databases. In response, the government … Read more

Many of the most interesting big economic landmarks in IT have happened around what might be called "re-platforming," as users take existing applications and redeploy them on new platforms, such as we see when applications move from corporate data centers to the Amazon Web Services EC2 or the Rackspace Cloud.

We see this trend every few years, for example when the IT masses switched from the mainframe to the client server world, and then again when we went from big iron Unix to Intel-driven X86 commodity platforms. Today, cloud and virtualization represent the next major re-platforming trend as … Read more

The decision to hand Google's CEO reins from Eric Schmidt to Larry Page was born not out of internal dissent or competitive fears over Facebook but rather out of the need to tighten up management.

That's the message Schmidt himself has been trying to get across. Though he's spent the past week defending and explaining the impetus behind the executive shuffle, he once again tried to set the record straight yesterday at the World Economic Forum in Davos, Switzerland.

Schmidt worked to quash rumors spread by those claiming to have the inside scoop.

"All of the … Read more

Global Gaming Factory X, a Swedish company that operates Internet cafes but became far more noteworthy for attempting to acquire The Pirate Bay last year, is facing possible bankruptcy. In addition, the company is the subject of a police investigation in Sweden.

Two of GGF's creditors claim the company owes them the combined equivalent of $220,000 and want authorities to put the company into bankruptcy, according to reports in numerous Swedish newspapers. A bankruptcy isn't very exciting, but GGF's owner-operator, the mercurial Hans Pandeya, has a long track record of generating controversy--so things may perk up. … Read more

A report delivered today to Congress by a commission on U.S.-Chinese relations is pointing the finger at the Chinese government for continued hacking attempts and computer exploits.

"Recent high-profile, China-based computer exploitations continue to suggest some level of state support. Indicators include the massive scale of these exploitations and the extensive intelligence and reconnaissance components," noted the report from the U.S.-China Economic and Security Review Commission's (USCC).

The report specifically concluded that the Chinese government, Communist Party, and Chinese individuals and organizations continue to hack into computer systems and networks in the U.… Read more

A Chinese state-run telecom provider was the source of the redirection of U.S. military and corporate data that occurred this past April, according to excerpts of a draft report sent to CNET by the U.S.-China Economic and Security Review Commission.

The current draft of the U.S.-China Economic and Security Review Commission's (USCC's) 2010 annual report, which is close to final but has not yet been officially approved, finds that malicious computer activity tied to China continues to persist following reports early this year of attacks against Google and other companies from within the country.

In several cases, Chinese telecommunications firms have disrupted or impacted U.S. Internet traffic, according to the excerpts.

On March 24, Web traffic from YouTube, Twitter, Facebook, and other popular sites was temporarily affected by China's own internal censorship system, sometimes known as the Great Firewall. Users in Chile and the United States trying to reach those sites were diverted to incorrect servers or encountered error messages indicating that the sites did not exist. The USCC report said it was as if users outside China were trying to access restricted sites from behind China's Great Firewall.

Then on April 8, a large number of routing paths to various Internet Protocol addresses were redirected through networks in China for 17 minutes. The USCC identified China's state-owned telecommunications firm China Telecom as the source of the "hijacking." This diversion of data would have given the operators of the servers on those networks the ability to read, delete, or edit e-mail and other information sent along those paths.

The April incident affected traffic to and from U.S. government and military sites, including sites for the Senate, the Army, the Navy, the Marine Corps, the Air Force, and the office of the Secretary of Defense, the USCC said. Rodney Joffe, senior technologist at Domain Name System registry Neustar, also confirmed in a recent interview with CNET that the data diverted to China came from Fortune 500 companies and many branches of the U.S. government.

Evidence didn't clearly indicate whether this diversion of data was done intentionally or for what purpose, according to the USCC. But the capability alone raises a red flag.

"Although the commission has no way to determine what, if anything, Chinese telecommunications firms did to the hijacked data, incidents of this nature could have a number of serious implications," said the report excerpts. "This level of access could enable surveillance of specific users or sites. It could disrupt a data transaction and prevent a user from establishing a connection with a site. It could even allow a diversion of data to somewhere that the user did not intend (for example, to a 'spoofed' site)."

The report also commented on an incident in April in which a China-based spy network was accused of targeting government departments, diplomatic missions, and other groups in India. The activity, which also compromised computers in at least 35 other countries, including the U.S., grabbed sensitive documents from the Indian government.… Read more

Despite the fact the economy remains teetered on the edge of oblivion, software companies have increased their profitability dramatically over the last year, according to a recently concluded annual benchmarking study of the small and mid-sized software industry conducted by information services provider OPEXEngine.

Benchmarking is an important part of the software industry these days as companies look to ensure that they are providing what customers want and that your company meets the performance needs.

The 2010 benchmarks were developed in concert with SIIA and were based on the confidential data provided by approximately 50 small and mid-size software vendors … Read more

Set to be released later today, the latest Digital Goods Spending Report by analyst firm VG Market and in-game monetization provider Playspan, shows that the burgeoning market for virtual goods is still just scratching the surface of the enormous opportunity ahead.

July's report reveals that 75 percent of the respondents (a sample size of 2,221 respondents was polled) have used real-world money to pay for virtual goods, and that roughly half expect to continue to spend about the same amount of real-world cash over the next 12 months.

Additionally, women over the age of 25 are stepping up … Read more