An AP report (July 2, 2008) cites the Wall Street Journal which mentions that Microsoft is expanding discussions with other media players such as News Corp, and Time Warner in order to create a deal with Yahoo.
According to the report a three party deal would provide Microsoft with Yahoo’s search engine, while the remaining Yahoo businesses would be combined with News Corp’s My Space or Time Warner’s AOL.
Keep in mind Yahoo, Google, and MySpace are already partnering together on standards in the social networking arena with the OpenSocial Foundation (McCarthy,2008), and at one time News Corp considered a swap deal with Yahoo whereby News Corp would give MySpace to Yahoo in return for a 30% controlling interest in the combined new Yahoo business.
References
Associated Press. (2008, July 2). Microsoft and Yahoo rise on deal talks report. Retrieved July 2, 2008 from http://www.forbes.com/feeds/ap/2008/07/02/ap5176971.html
McCarthy, C. (2008, March 25). Yahoo, Google, MySpace form nonprofit OpenSocial Foundation. Retrieved July 2, 2008 from
http://news.cnet.com/8301-13577_3-9902585-36.html
Sabbagh, D. (2007, June 20). News Corp explores swap of MySpace site for Yahoo! Stake. Times Online. Retrieved July 2, 2008 from http://business.timesonline.co.uk/tol/business/industry_sectors/media/article1957867.ece
Wednesday, July 2, 2008
Tuesday, July 1, 2008
What is the market reaction to security breaches and issues?
In terms of economic impact and market reaction, a 2003 study by Campbell, Gordon, Loeb and Zhou provided evidence to suggest that firms are significantly punished by the stock market only when security issues involve confidential information or unauthorized access to private information such as customer lists, credit card data, and company secrets. If the security issues are of a non-confidential nature such as denial of service attacks, and viruses, then sampling in the study suggests trivial stock market reaction.
The data that was sampled/tested in the study spanned the years 1997-2000 and involved publicly disclosed security incidents that were reported in either the Wall Street Journal, New York Times, Washington Post, USA Today, or Financial Times.
I wonder if data samples from 2000-2007 would remain in-line with previous empirical findings, or if revenues/sales were impacted versus just the stock price?
Reference
Campbell, K., Gordon, L., Loeb, M. & Zhou, L. (2003). The economic cost of publicly announced information security breaches: empirical evidence from the stock market. Journal of Computer Security, 11(3). Retrieved July 1, 2008 from Academic Search Premier
The data that was sampled/tested in the study spanned the years 1997-2000 and involved publicly disclosed security incidents that were reported in either the Wall Street Journal, New York Times, Washington Post, USA Today, or Financial Times.
I wonder if data samples from 2000-2007 would remain in-line with previous empirical findings, or if revenues/sales were impacted versus just the stock price?
Reference
Campbell, K., Gordon, L., Loeb, M. & Zhou, L. (2003). The economic cost of publicly announced information security breaches: empirical evidence from the stock market. Journal of Computer Security, 11(3). Retrieved July 1, 2008 from Academic Search Premier
Security related links and resources
2007 E-Crime Watch Survey. (2007, September 11). Retrieved July 1, 2008 from http://www2.csoonline.com/info/release.html?CID=33168
About CSD: The computer security division. (2007, September 17). Retrieved November 25, 2007 from http://csrc.nist.gov/about/index.html
Epps, D., Tanner, S. & Silva, C. (2006). Can VoIP secure itself for the next technology wave? Information Systems Security, 15(2). Retrieved November 23, 2007 from Academic Search Premier.
Kuhn, R., Walsh, T. & Fries, S. (2005, January). Security considerations for voice over IP systems: Recommendations of the National Institute of Standards and Technology. Retrieved from http://csrc.nist.gov/publications/nistpubs/800-58/SP800-58-final.pdf
Leibfried, R. (2006). Securing internet protocol telephony. Retrieved October 24, 2007 from http://www.verizonbusiness.com/us/resources/data/securingvoip.pdf
Linask, E. (2006, May 23). Bulletproof VoIP security for SIP softphone users. Retrieved November 21, 2007 from http://voipforsmb.tmcnet.com/news/articles/1285-bulletproof-voip-security-sip-softphone-users.htm
Orans, L. (2005, June 28). A taxonomy for security threats to VoIP environments. Retrieved November 18, 2007 from Gartner.
Plewes, A. (2007, March 22). The biggest VoIP security threats - and how to stop them. Retrieved November 18, 2007 from http://www.silicon.com/research/specialreports/voipsecurity/0,3800013656,39166479,00.htm
Richardson, R. (2007). 2007 CSI Computer crime and security survey. Retrieved November 25, 2007 from http://i.cmpnet.com/v2.gocsi.com/pdf/CSISurvey2007.pdf
SANS Top 20 2007 security risks. (2007). Retrieved November 25, 2007 from http://www.sans.org/top20/#n1
Softphone (2005, February 9). Retrieved November 19, 2007 from http://searchvoip.techtarget.com/sDefinition/0,,sid66_gci1048895,00.html
VoIP Security Alliance. (2005, October 24). VoIP security and privacy threat taxonomy (Public Release 1.0). Retrieved November 18, 2007 from http://www.voipsa.org/Activities/VOIPSA_Threat_Taxonomy_0.1.pdf
ZDNet definition for softphone. (n.d.). Retrieved November 19, 2007 from http://dictionary.zdnet.com/definition/softphone.html
About CSD: The computer security division. (2007, September 17). Retrieved November 25, 2007 from http://csrc.nist.gov/about/index.html
Epps, D., Tanner, S. & Silva, C. (2006). Can VoIP secure itself for the next technology wave? Information Systems Security, 15(2). Retrieved November 23, 2007 from Academic Search Premier.
Kuhn, R., Walsh, T. & Fries, S. (2005, January). Security considerations for voice over IP systems: Recommendations of the National Institute of Standards and Technology. Retrieved from http://csrc.nist.gov/publications/nistpubs/800-58/SP800-58-final.pdf
Leibfried, R. (2006). Securing internet protocol telephony. Retrieved October 24, 2007 from http://www.verizonbusiness.com/us/resources/data/securingvoip.pdf
Linask, E. (2006, May 23). Bulletproof VoIP security for SIP softphone users. Retrieved November 21, 2007 from http://voipforsmb.tmcnet.com/news/articles/1285-bulletproof-voip-security-sip-softphone-users.htm
Orans, L. (2005, June 28). A taxonomy for security threats to VoIP environments. Retrieved November 18, 2007 from Gartner.
Plewes, A. (2007, March 22). The biggest VoIP security threats - and how to stop them. Retrieved November 18, 2007 from http://www.silicon.com/research/specialreports/voipsecurity/0,3800013656,39166479,00.htm
Richardson, R. (2007). 2007 CSI Computer crime and security survey. Retrieved November 25, 2007 from http://i.cmpnet.com/v2.gocsi.com/pdf/CSISurvey2007.pdf
SANS Top 20 2007 security risks. (2007). Retrieved November 25, 2007 from http://www.sans.org/top20/#n1
Softphone (2005, February 9). Retrieved November 19, 2007 from http://searchvoip.techtarget.com/sDefinition/0,,sid66_gci1048895,00.html
VoIP Security Alliance. (2005, October 24). VoIP security and privacy threat taxonomy (Public Release 1.0). Retrieved November 18, 2007 from http://www.voipsa.org/Activities/VOIPSA_Threat_Taxonomy_0.1.pdf
ZDNet definition for softphone. (n.d.). Retrieved November 19, 2007 from http://dictionary.zdnet.com/definition/softphone.html
Monday, June 30, 2008
Do we really have to eliminate all ecommerce security risks?
The top five security threats in terms of costs per attack to an organization are financial fraud $21 million, viruses $8.3 million, theft of customer/employee data $7.8 million, system penetrations $6.8 million, and laptop/mobile device thefts $3.8 million, according to CSI (Richardson, 2007).
Couple these kinds of attacks with generous press coverage, and the results can be significantly damaging to an organizations reputation, brand, investors, and customers.
Turban, Lee, King, McKay and Marshall recommend a sensible approach/model called enterprise-wide security which is based on four pillars: Senior management commitment and support, Security policies and training, Security procedures and enforcement, and Hardware/Software Security tools (2008).
Senior manager commitment and support ensures that security programs are established and maintained. Security policies and training provide guidance on acceptable use of computing assets, access control, enforcement, roles and responsibilities.
Security procedures and enforcement focus on the evaluation of the assets at risk and the costs/value to the organization, customers, and criminals. The hardware/software security tools are implemented to support and enforce the policies and procedures that were put in place (Turban et al. 2008).
The enterprise-wide approach focuses on managing prioritized security risks versus addressing all security risks which can stretch scare resources.
References
Richardson, R. (2007). 2007 CSI Computer crime and security survey. Retrieved November 25, 2007 from http://i.cmpnet.com/v2.gocsi.com/pdf/CSISurvey2007.pdf
Turban, E., Lee, J., King, D., McKay, J. & Marshall, P. (2008). Electronic Commerce 2008. Upper Saddle River, NJ: Pearson Prentice Hall.
Couple these kinds of attacks with generous press coverage, and the results can be significantly damaging to an organizations reputation, brand, investors, and customers.
Turban, Lee, King, McKay and Marshall recommend a sensible approach/model called enterprise-wide security which is based on four pillars: Senior management commitment and support, Security policies and training, Security procedures and enforcement, and Hardware/Software Security tools (2008).
Senior manager commitment and support ensures that security programs are established and maintained. Security policies and training provide guidance on acceptable use of computing assets, access control, enforcement, roles and responsibilities.
Security procedures and enforcement focus on the evaluation of the assets at risk and the costs/value to the organization, customers, and criminals. The hardware/software security tools are implemented to support and enforce the policies and procedures that were put in place (Turban et al. 2008).
The enterprise-wide approach focuses on managing prioritized security risks versus addressing all security risks which can stretch scare resources.
References
Richardson, R. (2007). 2007 CSI Computer crime and security survey. Retrieved November 25, 2007 from http://i.cmpnet.com/v2.gocsi.com/pdf/CSISurvey2007.pdf
Turban, E., Lee, J., King, D., McKay, J. & Marshall, P. (2008). Electronic Commerce 2008. Upper Saddle River, NJ: Pearson Prentice Hall.
Tuesday, June 24, 2008
Can Jerry Wang turn Yahoo around?
Since the Microsoft/Yahoo deal collapsed we have seen Jerry Wang and team under siege. In early June Carl Icahn claimed that Yahoo sabotaged the deal, and that he would push to remove the entire board at Yahoo’s August 1 shareholder meeting (BBC). Mr. Icahn now has had to scale back the number of members he wants to un-seat because of a lack of support from large institutional investors (Doran, 2008).
Will Jerry survive and can he turn things around?
Yahoo’s stock price dropped to around $19.05 Jan 30 of 2008, then surged to $28.38 February 1 after Microsoft announced their acquisition intent (2008) reaching $30 a share by February 14 (Yahoo Finance, n.d.)
In terms of fundamentals, Yahoo top line revenue has been growing at a modest 2.3% the past four quarters while recording over half a billion in net income this past quarter (Yahoo Finance, 2008). In the past four quarters Yahoo net income averaged a growth rate of 68% indicating some internal efficiencies to squeeze costs out of internal operations.
Wall Street and investors want to know what is Yahoo’s clear strategy/vision going to be in order to grow and increase value, and is Jerry Wang the guy that can deliver that vision (Yen, 2008). I say give Jerry and team one more quarter to optimize and communicate their strategy coupled with two more quarters of positive financial results. If the opportunity is fumbled then we are sure to see a shake-up or perhaps another acquisition episode.
References
BBC (2008, June 4). Yahoo 'sabotaged' Microsoft deal. Retrieved June 20, 2008 from http://news.bbc.co.uk/2/hi/business/7436856.stm
Doran, J. (2008, June 22). Icahn to soften his approach to Yahoo! as investors get nervous. Retrieved June 24, 2008 from http://www.guardian.co.uk/technology/2008/jun/22/yahootakeover.yahoo
Microsoft. (2008, February 1). Microsoft proposes acquisition of Yahoo for $31 per share. Retrieved June 21, 2008 from
http://www.microsoft.com/presspass/press/2008/feb08/02-01CorpNewsPR.mspx
Yahoo Finance. (2008). Quarterly income statement. Retrieved June 21, 2008 from http://finance.yahoo.com/q/is?s=YHOO
Yahoo Finance (n.d.) Interactive stock chart: Yahoo. Retrieved June 21, 2008 from http://finance.yahoo.com/echarts?s=YHOO#chart10:symbol=yhoo;range=20070924,20080620;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on
Yen, Y. (2008, June 20). Yahoo exodus adds to Yang's burdens. Retrieved June 21, 2008 from http://money.cnn.com/2008/06/20/technology/yahoo_yang.fortune/index.htm?section=money_latest
Will Jerry survive and can he turn things around?
Yahoo’s stock price dropped to around $19.05 Jan 30 of 2008, then surged to $28.38 February 1 after Microsoft announced their acquisition intent (2008) reaching $30 a share by February 14 (Yahoo Finance, n.d.)
In terms of fundamentals, Yahoo top line revenue has been growing at a modest 2.3% the past four quarters while recording over half a billion in net income this past quarter (Yahoo Finance, 2008). In the past four quarters Yahoo net income averaged a growth rate of 68% indicating some internal efficiencies to squeeze costs out of internal operations.
Wall Street and investors want to know what is Yahoo’s clear strategy/vision going to be in order to grow and increase value, and is Jerry Wang the guy that can deliver that vision (Yen, 2008). I say give Jerry and team one more quarter to optimize and communicate their strategy coupled with two more quarters of positive financial results. If the opportunity is fumbled then we are sure to see a shake-up or perhaps another acquisition episode.
References
BBC (2008, June 4). Yahoo 'sabotaged' Microsoft deal. Retrieved June 20, 2008 from http://news.bbc.co.uk/2/hi/business/7436856.stm
Doran, J. (2008, June 22). Icahn to soften his approach to Yahoo! as investors get nervous. Retrieved June 24, 2008 from http://www.guardian.co.uk/technology/2008/jun/22/yahootakeover.yahoo
Microsoft. (2008, February 1). Microsoft proposes acquisition of Yahoo for $31 per share. Retrieved June 21, 2008 from
http://www.microsoft.com/presspass/press/2008/feb08/02-01CorpNewsPR.mspx
Yahoo Finance. (2008). Quarterly income statement. Retrieved June 21, 2008 from http://finance.yahoo.com/q/is?s=YHOO
Yahoo Finance (n.d.) Interactive stock chart: Yahoo. Retrieved June 21, 2008 from http://finance.yahoo.com/echarts?s=YHOO#chart10:symbol=yhoo;range=20070924,20080620;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on
Yen, Y. (2008, June 20). Yahoo exodus adds to Yang's burdens. Retrieved June 21, 2008 from http://money.cnn.com/2008/06/20/technology/yahoo_yang.fortune/index.htm?section=money_latest
Is Yahoo having to defend its other flank?
Christine Holahan suggests that Yahoo is out of one battle—Microsoft’s recent failed takeover bid—, and poised to enter another battle with social networking traffic leader, MySpace.com (2008). On June 18, 2008 MySpace is launching new design changes and five new features that are portal-like and Yahooesque.
The new changes and features are items such as news stories, local weather, links to MySpace entertainment areas, top MySpace blogger images, and a MySpace TV player
Forrester analyst Shar VanBoskirk mentions that Yahoo and AOL have already been losing some traffic to social media outlets that utilize digital message walls for friends to communicate with each other versus using e-mail (Holahan, 2008).
Yahoo and e-commerce analyst will be watching web traffic over the next few months to see what kind of impact the MySpace changes will have.
Reference
Holahan, C. (2008, June 15). MySpace: My Portal? Retrieved June 16, 2008 from http://www.ecommercetimes.com/story/63404.html
The new changes and features are items such as news stories, local weather, links to MySpace entertainment areas, top MySpace blogger images, and a MySpace TV player
Forrester analyst Shar VanBoskirk mentions that Yahoo and AOL have already been losing some traffic to social media outlets that utilize digital message walls for friends to communicate with each other versus using e-mail (Holahan, 2008).
Yahoo and e-commerce analyst will be watching web traffic over the next few months to see what kind of impact the MySpace changes will have.
Reference
Holahan, C. (2008, June 15). MySpace: My Portal? Retrieved June 16, 2008 from http://www.ecommercetimes.com/story/63404.html
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