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Randy Bias just published estimates that AWS is pulling in about $220 million annually for its Elastic Compute Cloud (EC2) offerings.

He also estimates that AWS runs about 40,000 servers to support the service.  EC2 probably grew at a rate of 10% from year to year, Randy believes.

Amazon has really effectively leveraged the capacity from its retail business to offer services to the rest of the market. Is this something other companies with large IT infrastructures can contemplate?

Launched by the Institute for Public Accuracy in June 2014, ExposeFacts.org represents a new approach for encouraging whistleblowers to disclose information that citizens need to make truly informed decisions in a democracy. From the outset, our message is clear: “Whistleblowers Welcome at ExposeFacts.org.” ExposeFacts aims to shed light on concealed activities that are relevant to human rights, corporate malfeasance, the environment, civil liberties and war. At a time when key provisions of the First, Fourth and Fifth Amendments are under assault, we are standing up for a free press, privacy, transparency and due process as we seek to reveal official information—whether governmental or corporate—that the public has a right to know. While no software can provide an ironclad guarantee of confidentiality, ExposeFacts—assisted by the Freedom of the Press Foundation and its “SecureDrop” whistleblower submission system—is utilizing the latest technology on behalf of anonymity for anyone submitting materials via the ExposeFacts.org website. As journalists we are committed to the goal of protecting the identity of every source who wishes to remain anonymous.

The seasoned editorial board of ExposeFacts will be assessing all the submitted material and, when deemed appropriate, will arrange for journalistic release of information. In exercising its judgment, the editorial board is able to call on the expertise of the ExposeFacts advisory board, which includes more than 40 journalists, whistleblowers, former U.S. government officials and others with wide-ranging expertise. We are proud that Pentagon Papers whistleblower Daniel Ellsberg was the first person to become a member of the ExposeFacts advisory board. The icon below links to a SecureDrop implementation for ExposeFacts overseen by the Freedom of the Press Foundation and is only accessible using the Tor browser. As the Freedom of the Press Foundation notes, no one can guarantee 100 percent security, but this provides a “significantly more secure environment for sources to get information than exists through normal digital channels, but there are always risks.” ExposeFacts follows all guidelines as recommended by Freedom of the Press Foundation, and whistleblowers should too; the SecureDrop onion URL should only be accessed with the Tor browser — and, for added security, be running the Tails operating system. Whistleblowers should not log-in to SecureDrop from a home or office Internet connection, but rather from public wifi, preferably one you do not frequent. Whistleblowers should keep to a minimum interacting with whistleblowing-related websites unless they are using such secure software.

At decade's end, the trusty landline telephone could be nothing more than a memory. Telecom giants AT&T T +0.31% AT&T Inc. U.S.: NYSE $35.07 +0.11 +0.31% March 28, 2014 4:00 pm Volume (Delayed 15m) : 24.66M AFTER HOURS $35.03 -0.04 -0.11% March 28, 2014 7:31 pm Volume (Delayed 15m): 85,446 P/E Ratio 10.28 Market Cap $182.60 Billion Dividend Yield 5.25% Rev. per Employee $529,844 03/29/14 Prepare to Hang Up the Phone, ... 03/21/14 AT&T Criticizes Netflix's 'Arr... 03/21/14 Samsung's Galaxy S5 Smartphone... More quote details and news » T in Your Value Your Change Short position and Verizon Communications VZ -0.57% Verizon Communications Inc. U.S.: NYSE $47.42 -0.27 -0.57% March 28, 2014 4:01 pm Volume (Delayed 15m) : 24.13M AFTER HOURS $47.47 +0.05 +0.11% March 28, 2014 7:59 pm Volume (Delayed 15m): 1.57M

The two providers want to lay the crumbling POTS to rest and replace it with Internet Protocol-based systems that use the same wired and wireless broadband networks that bring Web access, cable programming and, yes, even your telephone service, into your homes. You may think you have a traditional landline because your home phone plugs into a jack, but if you have bundled your phone with Internet and cable services, you're making calls over an IP network, not twisted copper wires. California, Florida, Texas, Georgia, North Carolina, Wisconsin and Ohio are among states that agree telecom resources would be better redirected into modern telephone technologies and innovations, and will kill copper-based technologies in the next three years or so. Kentucky and Colorado are weighing similar laws, which force people to go wireless whether they want to or not. In Mantoloking, N.J., Verizon wants to replace the landline system, which Hurricane Sandy wiped out, with its wireless Voice Link. That would make it the first entire town to go landline-less, a move that isn't sitting well with all residents.

New Jersey's legislature, worried about losing data applications such as credit-card processing and alarm systems that wireless systems can't handle, wants a one-year moratorium to block that switch. It will vote on the measure this month. (Verizon tried a similar change in Fire Island, N.Y., when its copper lines were destroyed, but public opposition persuaded Verizon to install fiber-optic cable.) It's no surprise that landlines are unfashionable, considering many of us already have or are preparing to ditch them. More than 38% of adults and 45.5% of children live in households without a landline telephone, says the Centers for Disease Control and Prevention. That means two in every five U.S. homes, or 39%, are wireless, up from 26.6% three years ago. Moreover, a scant 8.5% of households relied only on a landline, while 2% were phoneless in 2013. Metropolitan residents have few worries about the end of landlines. High-speed wire and wireless services are abundant and work well, despite occasional dropped calls. Those living in rural areas, where cell towers are few and 4G capability limited, face different issues.

For more than two years, researchers and rights activists have tracked the proliferation and abuse of computer spyware that can watch people in their homes and intercept their e-mails. Now they’ve built a tool that can help the targets protect themselves.The free, downloadable software, called Detekt, searches computers for the presence of malicious programs that have been built to evade detection. The spyware ranges from government-grade products used by intelligence and police agencies to hacker staples known as RATs—remote administration tools. Detekt, which was developed by security researcher Claudio Guarnieri, is being released in a partnership with advocacy groups Amnesty International, Digitale Gesellschaft, the Electronic Frontier Foundation, and Privacy International.Guarnieri says his tool finds hidden spy programs by seeking unique patterns on computers that indicate a specific malware is running. He warns users not to expect his program (which is available only for Windows machines) to find all spyware, and notes that the release of Detekt could spur malware developers to further cloak their code.

Software created by the controversial UK-based Gamma Group International was used to spy on computers that appear to be located in the United States, the UK, Germany, Russia, Iran, and Bahrain, according to a leaked trove of documents analyzed by ProPublica. It's not clear whether the surveillance was conducted by governments or private entities. Customer e-mail addresses in the collection appeared to belong to a German surveillance company, an independent consultant in Dubai, the Bosnian and Hungarian Intelligence services, a Dutch law enforcement officer, and the Qatari government.

The leaked files—which were posted online by hackers—are the latest in a series of revelations about how state actors including repressive regimes have used Gamma's software to spy on dissidents, journalists, and activist groups. The documents, leaked last Saturday, could not be readily verified, but experts told ProPublica they believed them to be genuine. "I think it's highly unlikely that it's a fake," said Morgan Marquis-Bore, a security researcher who while at The Citizen Lab at the University of Toronto had analyzed Gamma Group's software and who authored an article about the leak on Thursday. The documents confirm many details that have already been reported about Gamma, such as that its tools were used to spy on Bahraini activists. Some documents in the trove contain metadata tied to e-mail addresses of several Gamma employees. Bill Marczak, another Gamma Group expert at the Citizen Lab, said that several dates in the documents correspond to publicly known events—such as the day that a particular Bahraini activist was hacked.

The leaked files contain more than 40 gigabytes of confidential technical material, including software code, internal memos, strategy reports, and user guides on how to use Gamma Group software suite called FinFisher. FinFisher enables customers to monitor secure Web traffic, Skype calls, webcams, and personal files. It is installed as malware on targets' computers and cell phones. A price list included in the trove lists a license of the software at almost $4 million. The documents reveal that Gamma uses technology from a French company called Vupen Security that sells so-called computer "exploits." Exploits include techniques called "zero days" for "popular software like Microsoft Office, Internet Explorer, Adobe Acrobat Reader, and many more." Zero days are exploits that have not yet been detected by the software maker and therefore are not blocked.

Security experts call it a “drive-by download”: a hacker infiltrates a high-traffic website and then subverts it to deliver malware to every single visitor. It’s one of the most powerful tools in the black hat arsenal, capable of delivering thousands of fresh victims into a hackers’ clutches within minutes. Now the technique is being adopted by a different kind of a hacker—the kind with a badge. For the last two years, the FBI has been quietly experimenting with drive-by hacks as a solution to one of law enforcement’s knottiest Internet problems: how to identify and prosecute users of criminal websites hiding behind the powerful Tor anonymity system. The approach has borne fruit—over a dozen alleged users of Tor-based child porn sites are now headed for trial as a result. But it’s also engendering controversy, with charges that the Justice Department has glossed over the bulk-hacking technique when describing it to judges, while concealing its use from defendants. Critics also worry about mission creep, the weakening of a technology relied on by human rights workers and activists, and the potential for innocent parties to wind up infected with government malware because they visited the wrong website. “This is such a big leap, there should have been congressional hearings about this,” says ACLU technologist Chris Soghoian, an expert on law enforcement’s use of hacking tools. “If Congress decides this is a technique that’s perfectly appropriate, maybe that’s OK. But let’s have an informed debate about it.”

The FBI’s use of malware is not new. The bureau calls the method an NIT, for “network investigative technique,” and the FBI has been using it since at least 2002 in cases ranging from computer hacking to bomb threats, child porn to extortion. Depending on the deployment, an NIT can be a bulky full-featured backdoor program that gives the government access to your files, location, web history and webcam for a month at a time, or a slim, fleeting wisp of code that sends the FBI your computer’s name and address, and then evaporates. What’s changed is the way the FBI uses its malware capability, deploying it as a driftnet instead of a fishing line. And the shift is a direct response to Tor, the powerful anonymity system endorsed by Edward Snowden and the State Department alike.

Part of that shift is simple: The business side sees what technology can do, and it's banging on IT's door, demanding ... what? Not new drop-down menus in the same-old ERP application, but rather state-of-the-art, cutting-edge, ain't-that-cool innovation. The landscape is wide open: Innovation can come in the form of new technologies, such as the Internet of Things, or from mobility, the cloud, virtualization -- in fact, from anywhere an enterprise vendor isn't filling a need. The easiest place to find that? Startups.

YouTube seems not to care a jot that its actions are inimical to Adobe, saying it's just doing what all the cool kids – Netflix, Apple, Microsoft and its competitor Vimeo – have already done. Which is not to say that Flash is dead: those who don't run the browsers above will still get YouTube delivered by whatever technology works bes tin their environment. And that will often – perhaps too often* – be Flash. ® Bootnote * Until they get p0wned, that is: Flash is so horridly buggy that Apple has just updated its plugin-blockers to foil versions of the product prior to 16.0.0.296 and 13.0.0.264.

European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”

“If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.

According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.

The UK National Crime Agency arrested 56 suspected hackers, including one 23-year-old male who allegedly attempted to hack his way into the U.S.’ Department of Defense in 2014. Not attempting to minimize the potential risks of hacking but how much does cyber-crime actually cost, what are the risks and what about those who hack the data of billions of internet users per day to, allegedly, “keep all of us safe?”

Besides the 23-year-old who allegedly attempted to hack his way into the a U.S. Department of Defense site, the other detainees allegedly were members of the hacking collectives Lizard Squad and D33DS which are being accused of fraud, money laundering and Denial of Service and Distributed Denial of Service (DOS & DDOS) attacks.  D33DS stands accused of having stolen data of some 450,000 Yahoo users. The arrests followed the recent announcement about the so-called FREAK security vulnerability that was leaving thousands of SSL sites unprotected. The arrest of the 56 hackers in the UK was reported as the National Crime Agency’s way of “sending a clear message” to the hacker community.

The U.S. DoD’s cyber-security functioned, obviously. A recent article by Benjamin Dean entitled “Hard Evidence: How much is cybercrime really costing us” suggests that the money spent on cyber-security per year is disproportional to the harm that is being caused by cyber-crime. Dean, who is a Fellow for Internet Governance and Cyber-security at the School of International and Public Affairs at Columbia University would conclude that: There are numerous competing budgetary priorities at any one time and limited funds to spend on meeting all these needs. How much money does it make sense to invest in bolstering cybersecurity, relative to the losses? …In the hysteria created in the wake of the hacks of 2014, we risk making the wrong choice simply because we don’t know what the current sums of money are being spent on.

The British government has admitted that its practice of spying on confidential communications between lawyers and their clients was a breach of the European Convention on Human Rights (ECHR). Details of the controversial snooping emerged in November: lawyers suing Blighty over its rendition of two Libyan families to be tortured by the late and unlamented Gaddafi regime claimed Her Majesty's own lawyers seemed to have access to the defense team's emails. The families' briefs asked for a probe by the secretive Investigatory Powers Tribunal (IPT), a move that led to Wednesday's admission. "The concession the government has made today relates to the agencies' policies and procedures governing the handling of legally privileged communications and whether they are compatible with the ECHR," a government spokesman said in a statement to the media, via the Press Association. "In view of recent IPT judgments, we acknowledge that the policies applied since 2010 have not fully met the requirements of the ECHR, specifically Article 8. This includes a requirement that safeguards are made sufficiently public."

The guidelines revealed by the investigation showed that MI5 – which handles the UK's domestic security – had free reign to spy on highly private and sensitive lawyer-client conversations between April 2011 and January 2014. MI6, which handles foreign intelligence, had no rules on the matter either until 2011, and even those were considered void if "extremists" were involved. Britain's answer to the NSA, GCHQ, had rules against such spying, but they too were relaxed in 2011. "By allowing the intelligence agencies free rein to spy on communications between lawyers and their clients, the Government has endangered the fundamental British right to a fair trial," said Cori Crider, a director at the non-profit Reprieve and one of the lawyers for the Libyan families. "For too long, the security services have been allowed to snoop on those bringing cases against them when they speak to their lawyers. In doing so, they have violated a right that is centuries old in British common law. Today they have finally admitted they have been acting unlawfully for years."

Crider said it now seemed probable that UK snoopers had been listening in on the communications over the Libyan case. The British government hasn't admitted guilt, but it has at least acknowledged that it was doing something wrong – sort of. "It does not mean that there was any deliberate wrongdoing on the part of the security and intelligence agencies, which have always taken their obligation to protect legally privileged material extremely seriously," the government spokesman said. "Nor does it mean that any of the agencies' activities have prejudiced or in any way resulted in an abuse of process in any civil or criminal proceedings. The agencies will now work with the independent Interception of Communications Commissioner to ensure their policies satisfy all of the UK's human rights obligations." So that's all right, then.