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What, We Worry? by Robert Gore

Posted by straightlinelogic 6 years, 11 months ago to Economics
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The legions of speculators, investors, and commentators who look for exogenous causes of stock market movements will perhaps say that WannaCry was dismissed because the damage was limited. However, the reported number of computers that have been affected rose all day, and there were news stories that at least one variation of the ransomware had no kill switch, which means it could proliferate unchecked. So during the trading day, nobody really knew how bad the damage was or how bad it would get. Also, while all the implications for computer and network security are not fully known, this incident, the worst of its kind so far, is a loud and clear warning of proliferating risks. Those risks are especially worrisome for companies whose business models depend on computers and the internet.
SOURCE URL: https://straightlinelogic.com/2017/05/16/what-we-worry-by-robert-gore/


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  • Posted by freedomforall 6 years, 11 months ago
    As a suspicious sort I ask, would a large OS software company hire hackers to indirectly encourage (frighten) people to accept the "software as a service" model?
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    • Posted by $ jdg 6 years, 11 months ago
      They've already shown that they have no issue with deliberately deleting programs you've paid for and own. Windows has truly become ransomware itself. Yet its makers continue to speak as though opposing their policies is theft.

      Switch to Ubuntu as I did, and don't worry about either type of ransomware racket any more.
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      • Posted by freedomforall 6 years, 11 months ago
        I plan to go that way when I have time, but I am still productive with some software that will require a re-learning curve to get back on track with Linux. Not even sure of the external hardware I use has drivers for Linux, and it has very time based performance issues that must be met. Have to do the research in order to get it working right. Re-learning also makes it less productive than using windows for some period of time.
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        • Posted by $ TomB666 6 years, 11 months ago
          Like jdg, I made the jump to Ubuntu. Because my wife didn't like the interface, I then switched to Mint and now we both are completely Linux based. So far there is only one program that I found I couldn't (actually wouldn't because I'm too lazy) run straight away on Linux and there is a windows emulator called Wine that runs it. (It is an old password program with over 100 passwords.) Mint is a derivative of Ubuntu so they are the same behind the screen as I understand it and both have built in access to programs that do everything I want to do. LibreOffice (better then Microsoft Office in my opinion) is included as well as Firefox, and lots of other programs. Ubuntu and Mint both offer a download to a disk that will let you run it without installing them to see if you like them. I think you'll see the learning curve is not much worse than upgrading to a new version of Windows. Be Brave :-)
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          • Posted by freedomforall 6 years, 11 months ago
            "not much worse than upgrading to a new version of Windows"
            "Upgrade" has a perverted definition when used to describe OS software.
            Thats why I didn't "upgrade" to W7 until 2014, and still dislike some parts of the user interface that can't be made to work properly as it did in XP. Every change that supposedly makes it easier, makes it less usable for me. I like to organize my own files in my own way, and I can find things easily. Today MSFT doesn't know what I want or how I work most efficiently. Apple is even farther off the target than MSFT for me. Eventually I will take the time to deal with learning
            how to make Linux work as I want it to work, but for now my time is better spent producing. I have been trying Linux off and on since 1995 and have installed many different Penguins. Every time I have tried it, I have decided to return to Windows again. At present it would require that I recompile the kernel in order to use the sound hardware I prefer (and to recompile with every new kernel release.) For now, windows is convenient for many people including me.
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        • Posted by DeanStriker 6 years, 11 months ago
          yes indeed, for myself that "relearning" has been, and still is, a very big deal. The older I get the tougher it be. I have trays-full of Linux OS apps gathered over the past decade-plus. Until Ubuntu (and then Mint) arrived it all remained beyond my reach.

          I've wasted untold hours and days eternally trying to stop Windoze from running my life. I figure they OWE me (good luck with that!).
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    • Posted by term2 6 years, 11 months ago
      the whole idea of the cloud makes me very nervous. I am not so sure the big guys can protect their cloud data any better than I can right here
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      • Posted by freedomforall 6 years, 11 months ago
        Their servers make a more tempting target for hackers.
        2. They likely have a higher number of disgruntled technically competent employees than you do
        3. They have large technically competent competitors with a vested interest in hacking their servers
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        • Posted by freedomforall 6 years, 11 months ago
          And the cloud reverses the liberty and productivity gained by keeping computing ability and data storage in the hands of the person(s) with the most to gain by its security and productivity. It's similar to the difference between private property acquired by honest work and public property acquired by looting.
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        • Posted by term2 6 years, 11 months ago
          It's analogous somewhat to taking the distributed local streets vs the freeways in Las Vegas (at least). Construction on the freeway basically makes it a parking lot on an indeterminate schedule with no escape route. With local streets you can choose from many ways to get to destination The mandatory power grid makes us all vulnerable to hackers and stupid government. Solar panels can't to installed without connection to the grid and reliance on the grid for operation
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  • Posted by Herb7734 6 years, 11 months ago
    As long as mankind creates innovations and inventions, there will always be those who will use it for evil purpose. The greater the product , the greater its use, the greater the disaster possible when the bad guys use it. There is no yin that cannot become a yang once some moochers get hold of it.
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  • Posted by DrZarkov99 6 years, 11 months ago
    Windows systems are as secure as a torn fish net, and have been since their inception. When I supported the U.S. intelligence community, and they decided to transition from their very secure Unix systems to Windows, I strongly advised against it. If they wanted the cheaper PC machines, I advised them to install Linux, the Unix-based open systems operating software for PCs. That would have made the transition from Unix easier, and they would have had the source code, permitting more reliable security audits and custom modification. Unfortunately, they were sold on the convenience of commercially supported software. As an alternative, I suggested they use Apple computers, since OS-X is Unix-based, and the machines can be "ganged" to create a super computer without modification, but they didn't like the price of the Apple machines.

    After the transition to Windows, the contracts for security audits and protection against hacking, viruses, and malware exploded to a cost much higher than the price difference between PCs and Macs. It's routine for security patches for Windows to arrive twice a week or more often. Those get rolled up into bigger modifications for less frequent delivery to commercial and private Windows users.

    I would strongly advise people to wean themselves off of Windows, and on to Linux, or ditch the PC altogether and move to a Mac. The Linux move can be a little intimidating for the less technically skilled, but the improved security environment is worth it. Going from Windows to the Apple environment is actually easy, even for the technically unskilled, thanks to the excellent Apple support team and built in transition features.
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    • Posted by mccannon01 6 years, 11 months ago
      Worked with MSFT DOS and Windows since they were invented. Switched to Mac in 2010 and never went back.
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      • Posted by DrZarkov99 6 years, 11 months ago
        The dominance of Windows is strictly the end result of a marketing battle between Bill Gates and Steve Jobs. Jobs was an arrogant snob, and his refusal to allow retailers to sell PCs and Macs in the same store was self-defeating. The user friendly Mac interface usually won out, even at the higher price when compared side by side with the pre-Windows PC, but because they were rarely seen together, the lower price for the PC machines attracted more buyers, and gave Gates time to develop a GUI interface (Windows). I've used Atari, Commodore, a variety of Windows PCs, IBM mainframes, various Unix/Posix/Linux machines, and I endorse the Mac as the best for most users.
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        • Posted by mccannon01 6 years, 11 months ago
          Gates won because of three letters: I-B-M

          Corporate America would buy any computer with those letters attached even if it was junk.

          I just tossed out my Amiga. Broke my heart but it was just taking up space.
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          • Posted by ewv 6 years, 11 months ago
            They were not junk and IBM computers were not the reason for Microsoft's success. Gates kept the rights to the operating system and an entire industry of compatible PCs grew up around it, with hardware PC's and peripherals, and software, provided from many sources. IBM PC hardware lost to the competition and IBM's later attempt to get back into operating systems with OS2 lost to Microsoft windows. Apple tried to keep a restricted operating system, hardware, and applications, all at higher prices and a mass market grew around and bypassed it.
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            • Posted by mccannon01 6 years, 11 months ago
              The initial dollars funding MSFT success came from corporate America, which held the attitude if the device didn't have IBM on the nameplate it couldn't possibly be a "real" computer and wasn't worthy of buying. Corporate America bought them, virtually exclusively, by the thousands until competition with the magic phrase "IBM compatible" began flooding the marketplace at cheaper prices so the average office person could have one at home, too. IBM opened the door for MSFT and the rest is history. Today the phrase "IBM compatible" has been replaced by "Windows compatible".

              Companies like Tandy, Commodore, Apple, et al were hardware manufacturers on their own and never would have had the magic letters on their nameplates, leaving them "out in the cold". Hey, the chips fell where they fell.

              Whether or not the IBM MSDOS and later early Windows systems were "junk" or not is open for opinion and debate. I had been writing code in a corporate research and manufacturing environment for a decade by the time the first ones showed up and had exposure to various OS and viewed these single-tasking systems as "junk". However, they were cheap junk and served a purpose. As I said above, the rest is history.
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              • Posted by ewv 6 years, 11 months ago
                The differences between computers were not "magic" on a "nameplate" or bitter resentment of "corporate America". By the time PCs were on the market there were several companies selling mainframe computers to businesses, including CDC and DEC. The DEC VAX series was very popular and very well designed. Like IBM, they tried to hang on to centralized multi-user computers too long and botched the entry into the growing PC market.

                IBM gave Bill Gates his start by paying to use his operating system, which he had bought and modified for the purpose. His retention of the rights to the operating system to sell on other compatible PCs with open standards available to everyone, not IBM "nameplate magic", was the basis of Microsoft's subsequent success.

                DOS was not "cheap junk". It was necessarily limited because of the early miniaturized hardware it ran on, and could work because it did not have to support multiple users and memory management, or the more intensive computing that was still only possible on larger systems. Low-cost innovation with simpler systems making computing available to everyone does not mean "junk" except in the eyes of the snob out of date large scale competitors who quickly lost to it as they continued to look down their noses.
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                • Posted by mccannon01 6 years, 11 months ago
                  Hi, ewv. Your statement: "The differences between computers were not "magic" on a "nameplate" or bitter resentment of "corporate America"." indicates you are missing my point. First, as I saw it there was no bitter resentment, but there was enough ignorance and/or fear of the unknown on the part of the corporate world management that their checkbooks for any kind of PC remained closed until Big Blue put its stamp on one, then the money flowed. That "magic" occurrence of marketing sealed MSFTs place in history as you say "IBM gave Bill Gates his start by paying to use his operating system...". The "IBM" on a name plate was certainly powerful "magic" when it came to convincing management to put ink on a check.

                  I cut my teeth programming a CDC 1704 core memory mini computer. Follow that with a CDC Cyber18, DEC PDP8, DEC 10, PDP11, Vax systems, Data General Eclipse, and HP 1000 and 3000 series. [Side note: when they scrapped the CDC 1704 in '75 I rescued an 8kb core module from the heap and I still have it in my library.] These systems were of the genre "mini computer" and were not "mainframes" like an IBM 360 at the time. The rapid growth of the micro-computer in the mid '70s to the mid '80s certainly was the death knell for the mini-computer and those that couldn't adjust in some way found themselves (as you say snobs looking down their noses) relegated to the trash can of history.

                  By the time the IBM PC came out in '81 I had already written thousands of lines of code for Motorola and Mostek chips and was well aware of multi-tasking capabilities of some operating systems. By '81 you'd think Big Blue would debut with something better than MSDOS, but what you see is what you get and it didn't seem like much to my colleagues and I at the time, hence IMHO "cheap junk". MSDOS didn't have to be "necessarily limited" as you say in '81, but it was. In any case, it served a purpose, management of the multi-national I worked for swooned over this little "IBM" and opened the checkbook along with thousands of other companies. That's all that was important to get the ball really rolling. We all benefited in the end and the story is still being written.
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                  • Posted by ewv 6 years, 11 months ago
                    There was an IBM advertising slogan at the time saying something like "nobody was ever fired for buying IBM" -- it was an attempt to stop the hemorrhaging of companies from buying the increasingly popular Vaxes, especially for engineering and science, for which the Vaxes were enormously superior to IBM and CDC mainframes (360, 370, 6600, etc.). For the first time, small companies could afford to buy their own mini-computer and use it more efficiently and effectively than the expensive and cumbersome time-sharing on mainframes owned by someone else renting out the time.

                    In 1981 and for years after, the early PCs were far too small and slow to do anything remotely like what Vaxes or the IBM or CDC mainframes could do, or other business machines or other mini-computers like Prime, or the more serious real time control systems like DEC PDPs. Throughout the 1980s, the competition for serious engineering and scientific computing was in micro-vaxes and graphics workstation networks like Apollo and Sun, not IBM and not the still too slow and small PCs of any kind. Lower cost PCs were by then obviously the promise of the future, but still far from adequate.

                    The "money" flowed into the PC-DOS market not because of IBM's name as magic to corporations, but from a whole new market of those who found the innovations in the early days of PCs useful despite the limitations and who couldn't afford the traditionally much higher prices for earlier and more advanced computers (and who didn't care what else sophisticated programmers could do for themselves). Even unix graphics workstations (with a "free" sophisticated OS), which were far cheaper than mini-computers, were still too costly for most people. But private individuals could have their own little PC computer, which was Gates' original dream and strategy. Microsoft's success came from the practical software it produced for a new market with inexpensive hardware from multiple sources with industry-adopted standard interfaces, all easily out-competing other attempts from Apple (with its corporate-controlled and limited peripherals and software) and hobbyist machines like the Trash-80.

                    DOS and the software that ran under it were not "junk". It was more elementary in many ways, but cleverly implemented to run on slow processors in small computers with little memory and disk storage, doing what it needed to do in the early stage for those who found it useful. It included compilers and interpreters like Fortran and C with development and debugging environments, and even a version of emacs, which at least allowed some "real" program development. That it was otherwise less sophisticated software for a single dedicated user on the PC didn't make it "junk". Its further development was, ironically, held back by its own success: DOS had to continue to support the huge volume of programs from multiple sources using different methods that already ran on earlier versions of DOS. There were a few marginally improved DOS-like versions from other sources, and there was a much improved 4-DOS command processor (still being enhanced by JP Software as its renamed and greatly expanded "Take Command", where you can see the history), but the whole idea of DOS was becoming obsolete. It wasn't until Microsoft's NT in the 1990s that a more sophisticated OS (based on the architecture of VMS) and graphics interface was practical on a PC with its improving but still limited processing power, memory, and diskspace.

                    IBM's "nameplate" didn't do any of this. If anything, IBM botched it all, quickly eliminating itself from the PC market for both hardware and software. It knew enough in the early days to realize that PCs would be important, but farmed out the OS to one of the few sources who could quickly supply a basic OS (Gates, who modified what he bought from someone else) rather than develop its own, and strategically gave away the whole game when it let Gates keep ownership of the OS because IBM thought that only the hardware mattered to the business. The industry standard hardware interfaces and portability of DOS enhanced competition and IBM lost the hardware battle, too.

                    The early versions of Windows running on top of DOS proved so popular, despite its limitations, that Microsoft decided to go for NT rather than continue collaborating with IBM on the more primitive OS2. It was too late for IBM, which though furious towards Microsoft tried to keep going with OS2 but was quickly buried. So much for the notion that corporate success with a near "monopoly" magically guarantees its own future. NT completely replaced DOS and the early Windows, ultimately through 95 and ME, that ran on top of it, and evolved to become the now widely used XP, 7, and 10 today. But Microsoft's future isn't guaranteed either, something Gates tried to tell the regulators when they went after him for daring to use his own private technical advantages for his own development. Success in the market does not come from magic nameplates.
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                    • Posted by mccannon01 6 years, 11 months ago
                      Very nice historical narrative, ewv. NT was a vast improvement, but my point is NT never would have been without the revenue generated by the IBM-MSFT partnership in the very beginning. I stand by my first paragraph above.

                      "Success in the market does not come from magic nameplates." Ahh, but it very well can. Check the fashion industry for one. A successful brand name can open doors (and wallets) and is a main reason successful companies guard their logos and names.

                      We're not likely to agree on everything because our paths through this history are slightly different (assuming we're close in age - the younger generations wouldn't know much about DEC or CDC), but it's been a good off topic discussion. Have a great day, ewv, and I'll give you last word.
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                      • Posted by ewv 6 years, 11 months ago
                        Every successful company starts with some kind of investment and Bill Gates did in fact start with IBM support. There have been situations in the economy where contingencies arond original plans and goals made a difference to who succeeded when. But those instabilities in cause depend on the existence of a market; they matter less in the beginning stages of a new one.

                        If Bill Gates had never been born, stayed at Harvard, or some other equivalent, the PC industry would been developed by someone. We will never know for certain how it would have worked out without the support Gates was able to get from IBM. But Gates did it (contrary to Obama's and Elizabeth Warren's obscene "you didn't build that"), and probably would have gone on to succeed in another way for the same ends with or without IBM because he had an ambition, a vision and a strategy that IBM and almost everyone else did not.

                        The market he created was much different than IBM's and was not instantaneous. The PC market grew into a mass market over many years with multiple suppliers and innovators who left IBM in the dust, and that would have happened in some form. But every innovator, including Gates in a big way, not IBM's nameplate, made possible what we have. IBM did in fact do what it did in its early role, but that was only a small part of it.

                        As we know from our own direct experiences, the computer industry was a result of innovation and production for useful ends, not fads in fashion -- which is also why IBM blew it in the PC industry. Trademarks are defended to protect the identity of earned reputation and success, which does not last indefinitely once the cause of it disappears. IBM went on to create many other successes, including creating and running one of the top private research labs in the world -- along side a few others like Bell Labs -- but reputation has a specific identity and lifespan, and it didn't help IBM in the PC industry.

                        Despite the parasites in the likes of the fashion industry who depend on whims and fads, no economy was ever built without practical and useful production and the intellectual property rights that make it possible. Without an industrial economy, the whims of luxury in the fashion "industry" would not exist, and neither would a a whole host of other wheeler-dealers who have nothing to offer but their own hot air and exploitation of ignorance -- including many parasites in the computer industry that we have also seen in our own direct experiences.
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  • Posted by Owlsrayne 6 years, 11 months ago
    It's the Old Liberal Media that is trying to drive the Social/Political agenda into the Marketplace. Just as what happened today 5/17, the market took a 300 pt. dive. many blaming Trump/Comey thingy. Then the Dimo's vocally pushing for Trump's impeachment as touted by one CNBC anchor who should have been more knowledgeable on actual market itself.
    If I had more reserve funds I would be buying more shares of stock for my portfolio.
    To paraphrase Hitchhikers Guide to the Galaxy: "Politicians (actually- lawyers) will be the first ones up against the wall when the revolution comes."
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  • Posted by Storo 6 years, 11 months ago
    Having some slight knowledge of the software industry (my son-in-law works for Google) it has always been my opinion that software developers don't really know (or care?) what vulnerabilities exist in their latest software programs, operating systems or updates. While they may take a stab at trying to make their software secure, the reality is that doing so slows their product-to-market speed (to beat the competition, you know) so I'm not convinced they do such a good job of it. Some companies (Apple?) have even stopped beta testing before a new software is issued to the public, preferring to let the users find the flaws. With so much of our economy and world now dependent on computers, you would think that real security would be more important. Guess not.
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    • Posted by freedomforall 6 years, 11 months ago
      Most programmers never have to deal with the security issues. Most are doing end user apps and leave security to the people who create the operating system. As a result most are dependent on the OS and helpless to security weaknesses. They could choose a more secure OS than Windows to write apps for, but that would exclude most of the market for their apps in many cases.
      I agree that some software companies do not do adequate debugging of their software. Being late to the market is often worse for a company than having a less than pristine product. We, the end users, let them do it and continue to buy their products. Doing that with the companies who write the operating systems is almost unavoidable for most people because the computers come with the OS already installed and included in the price. Installing another OS is beyond the capability of most computer users, and paying three times as much for an Apple computer does not seem to be a good decision when you are standing in Best Buy and your child is anxiously waiting. (I can't really speak for most computer buyers since I have always been better than average at using computers.)
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      • Posted by ewv 6 years, 11 months ago
        Security is not restricted to the operating system and includes security programs, applications and networking, including the large number of programs which include networking as an attribute.

        Most programs now include networking, even if only to communicate availability of an update, or marketing surveillance. Programmers are well aware of the need for security, whatever side they are on.

        An NSA official spoke out a few years ago, after the Snowden leaks, licking his chops over applications. He boasted that they see every application as another vulnerability for a point of entry. This includes security programs such as anti-virus, browsers, email, and routers. If they can get into a pc or smart phone at all, or can connect to an application, they exploit application vulnerabilities to get access to much more.
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    • Posted by ewv 6 years, 11 months ago
      When programming first began security wasn't a problem, and remained not a problem until after the internet allowed for public access. Today there are standards for security in programming, but the combination of the complexity and the vulnerabilities in older designs now entrenched in the internet (like the email protocols) make security very difficult. It isn't feasible to do enough testing of a complex new program release to guarantee that there will be no security or other problems. It isn't a "preference" to let users do the work.

      The larger importance of this latest ransomwear, beyond what it is doing to those attacked, is the policy of NSA to find, hide, and exploit vulnerabilities for its own use rather notify the manufacturer. If NSA can find them then so can others, and this has been a major battle over government policy for years. In this case NSA policy was a direct cause due to its own malicious software being leaked or stolen. Microsoft has publicly stated this.
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