More on data security breaches

In all of business (especially for risk), a company has to do an appropriate cost/benefit analysis.  If a data breach is a probability, then the company has to put controls in place - such as encryption, off-line data backups, appropriate information security policies.

As an expert recently said "Perfect security is infinitely expensive".

It is like insurance - if my dog is known to bite, then as a dog owner, I need to buy dog biting insurance.  Likewise, if I have a lot of personally identifiable information for my company on my corporate laptop; then I need to have better protection for that data.

In a similar fashion, if my dog is the meekest dog on the planet, maybe I don't need dog biting insurance; (or .. if I don't have personally identifiable information on my laptop, maybe I don't need to encrypt all data). 

Target's Revenues Down by $440 million after Data Breach

Taken from:  http://nypost.com/2014/02/26/targets-profits-down-46-after-data-breach/

The article noted:

Target reported a profit drop of $440 million for its fiscal fourth quarter as a result of the credit card breach on Wednesday.

Profit fell to $520 million, or 81 cents a share, from $961 million, or $1.47 a share, a year earlier. Total revenue fell 5.3 percent to $21.52 billion.

The company reported adjusted profit of $1.30 a share, at the top end of its prior guidance range of $1.20 to $1.30 a share.

Data security is a major aspect of IT.  In this case, Target is a big company, but in some cases for smaller company, such a data breach could permanently damage the company and take it into failure.

In many cases, it is expected that the company that has the data breach (i.e. credit card information stolen), must pay for credit monitoring, for restoration / resolution of the breach - paying for the purchases that were made on the stolen cards and more.  Those expenses can be significant.

And ... on the intangible side of things - this damages the companies reputation.

This link: http://business.financialpost.com/2014/02/26/beware-big-brother-culture-will-have-adverse-effect-on-creativity-productivity/

Target quickly went into damage-control mode, launching a full investigation, apologizing profusely and offering some consumers a year of free credit monitoring to compensate for any potential financial data that may have been compromised. But the damage to Target’s reputation had already been done.

So ... to save actual funds and to save reputation - be serious about your information security!!!   

Coming soon - cheap smartphones with internet access

Taken from:  http://au.ibtimes.com/articles/540601/20140226/microsoft-smartphone-nokia-android-samsung-facebook.htm#.Uw8_nvldWSo

Microsoft is intending to sell cheap smartphones in developing nations:

At the ongoing world's biggest mobile show Mobile World Congress in Barcelona, Microsoft discloses its plans to hit the emerging market of developing countries, providing low-cost phones and make internet-for-everyone possible. Targeting cheaper phones in collaboration with Qualcomm and with Chief Executive Officer Satya Nadella, it could lead to the company's healthy global internet growth.

So ... Moore's law and communication continue to leap forward!!!

Comcast acquires Times Warner Cable

Taken from: http://www.bloomberg.com/news/2014-02-12/comcast-said-to-agree-to-pay-159-a-share-for-time-warner-cable.html

Comcast and Time Warner are the United State's two largest cable companies - and Comcast (the biggest) recently announced plans to buy Times Warner Cable for 45.2 billion.  

Comcast has plans to become more than just a cable company, but to move into mass content creator, plus keep the high speed internet and cable TV side of things.

It puts them on a collusion course with Google, Apple, Facebook, Microsoft, Amazon and Verizon in the coming battle for digital dominance.

CNN had this comment:

"Americans already hate dealing with the cable guy -- and both these giant companies regularly rank among the worst of the worst in consumer surveys," said Craig Aaron, president and CEO of Free Press, a group that advocates for diversity in media ownership. "But this deal would be the cable guy on steroids -- pumped up, unstoppable and grasping for your wallet."

and this:

"An enlarged Comcast would be the bully in the schoolyard, able to dictate terms to content creators, Internet companies, other communications networks that must interconnect with it, and distributors who must access its content," said John Bergmayer, senior staff attorney for online consumer activist group Public Knowledge

So ... the future of cable TV, home internet and even entertainment is going to be effected by this merger.  Time will tell what happens!!!

 

Facebook Acquires WhatsApp

Taken from:  http://finance.yahoo.com/news/must-know-facebook-acquires-whatsapp-162740629.html

Facebook spent 19B (that's BILLION) to acquire WhatsApp.  (Part of that was with Facebook stock - WhatsApp shareholders and employees will hold about 8% of Facebook stock)

This purchase expands Facebook's reach - but (maybe more importantly) keeps others (most notably Google) at bay.  Messaging apps, VoIP, Instragram and others seem to be on Facebook's agenda as it gets into its second decade of life.  

Facebook seems to be heeding the message "Don't look back, they may be gaining on you" in a big way!!!