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Be Very Afraid of Scareware

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CRITICAL ERROR MESSAGE! REGISTRY DAMAGED AND CORRUPTED! Confronted with a message like this, most computer users feel compelled to take urgent action. Fortunately, instructions for what to do are right in front of them: click on a box to scan the computer. Once the scan is complete, and dozens of infections have been identified, they must go to a security website and pay $49.99 to download software that will remove the infections and safeguard their systems. “A lot of people feel that is $49.99 well spent,” notes Paul Ducklin, head of technology, Asia Pacific, for the security firm Sophos. “They don’t realize they’ve been fleeced.” At best, the downloaded software will have done nothing. At worst, it could conceivably be malware that could steal financial and password information, or cause the computer to distribute spam. The user has been the victim of “scareware” — bogus security software that pretends to find infections and then pretends to remove it after the user has paid for a license. Scareware is a rapidly growing problem. “Approximately five to 50 new samples of scareware are turning up every day,” Ducklin says. There’s a good reason for scareware’s rapid growth: It’s the easiest way for criminals to make money on the Internet, with millions of frightened computer users paying to download the stuff every month. For obvious reasons, it’s hard to get precise information about exactly how much money scareware scares out of users. But by most estimates, scareware is a billion-dollar industry. Sophisticated deception One reason scareware is so lucrative is that much of it uses very sophisticated techniques to fool users. Many scareware warnings reference security threats in the news (such as the Conficker worm), or display the four-color shield logo of the Microsoft Windows Security Center. “The design is almost identical to Windows, so it all looks very inviting and non-threatening,” says Dennis Fisher, editor of threatpost, Kaspersky Lab’s security news site. If users click to accept the scan, a realistic-looking animation will run, showing filenames flying by, much as they would during a real antivirus scan operation. Once the scan is complete the software will report on the viruses it found. “Scareware often promises to find viruses other products miss,” Ducklin explains. “So, to really scare you, it’ll report on all sorts of exotic viruses that infect mobile phones, or unusual applications you probably don’t have installed. If you research them on bona fide websites, you’ll find they are listed as legitimate threats.” The result of all this sophistication is that most people are deceived. And if you think your company’s users are different, consider this: In a recent experiment at North Carolina State University, 63 percent of participants were fooled into clicking on scareware — even though they’d been warned that some messages they saw would be fakes. Protecting users Given these figures, it’s smart to assume your company’s users are as likely to be sucked in by scareware as everyone else. Here are three steps that can help keep your computers scareware-free: Make sure security is up-to-date, and consider blocking all pop-ups. Generally, there’s no reason to accept any kind of pop-up advertising, Fisher says. “Even if there’s no malware link in the pop-up, it could be sending users to sites you don’t want,” he says. A pop-up blocker can always be overridden if necessary. Consider website filtering. “It can help to get some Web filtering software or appliance,” Ducklin says. “It will pre-filter websites your users are visiting, and analyzing the content coming in from them. That way, if a user does fall for the trick, and tries to visit a bad site, you can head it off.” Make sure users know what not to do. Education is your best tool in fighting scareware. Begin by making sure users know what brand of security software your company is using, and that no other security software should run on company-owned equipment. Next, make sure they know that if a pop-up or balloon appears, they should not click anywhere on it. “Don’t touch it!” warns David Bateman, who leads the Internet Safety Group at K&L Gates, a law firm representing Microsoft in its joint lawsuits with Washington state against eight scareware purveyors. “Even if you think you’re clicking the X button to close the window, sometimes those are fake and will begin a download. But nothing can download without the user taking some action.” Instead, users should either use control-alt-delete to close the window from the Windows Task Manager, or call for IT assistance. What if the balloon is a legitimate Windows Security Center warning? “If you need to run security software, open the Control Panel, go to the Windows Security Center, and run it from there,” Bateman advises. “That way, you’re safe.”

Be Very Afraid of Scareware

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CRITICAL ERROR MESSAGE! REGISTRY DAMAGED AND CORRUPTED! Confronted with a message like this, most computer users feel compelled to take urgent action. Fortunately, instructions for what to do are right in front of them: click on a box to scan the computer. Once the scan is complete, and dozens of infections have been identified, they must go to a security website and pay $49.99 to download software that will remove the infections and safeguard their systems. “A lot of people feel that is $49.99 well spent,” notes Paul Ducklin, head of technology, Asia Pacific, for the security firm Sophos. “They don’t realize they’ve been fleeced.” At best, the downloaded software will have done nothing. At worst, it could conceivably be malware that could steal financial and password information, or cause the computer to distribute spam. The user has been the victim of “scareware” — bogus security software that pretends to find infections and then pretends to remove it after the user has paid for a license. Scareware is a rapidly growing problem. “Approximately five to 50 new samples of scareware are turning up every day,” Ducklin says. There’s a good reason for scareware’s rapid growth: It’s the easiest way for criminals to make money on the Internet, with millions of frightened computer users paying to download the stuff every month. For obvious reasons, it’s hard to get precise information about exactly how much money scareware scares out of users. But by most estimates, scareware is a billion-dollar industry. Sophisticated deception One reason scareware is so lucrative is that much of it uses very sophisticated techniques to fool users. Many scareware warnings reference security threats in the news (such as the Conficker worm), or display the four-color shield logo of the Microsoft Windows Security Center. “The design is almost identical to Windows, so it all looks very inviting and non-threatening,” says Dennis Fisher, editor of threatpost, Kaspersky Lab’s security news site. If users click to accept the scan, a realistic-looking animation will run, showing filenames flying by, much as they would during a real antivirus scan operation. Once the scan is complete the software will report on the viruses it found. “Scareware often promises to find viruses other products miss,” Ducklin explains. “So, to really scare you, it’ll report on all sorts of exotic viruses that infect mobile phones, or unusual applications you probably don’t have installed. If you research them on bona fide websites, you’ll find they are listed as legitimate threats.” The result of all this sophistication is that most people are deceived. And if you think your company’s users are different, consider this: In a recent experiment at North Carolina State University, 63 percent of participants were fooled into clicking on scareware — even though they’d been warned that some messages they saw would be fakes. Protecting users Given these figures, it’s smart to assume your company’s users are as likely to be sucked in by scareware as everyone else. Here are three steps that can help keep your computers scareware-free: Make sure security is up-to-date, and consider blocking all pop-ups. Generally, there’s no reason to accept any kind of pop-up advertising, Fisher says. “Even if there’s no malware link in the pop-up, it could be sending users to sites you don’t want,” he says. A pop-up blocker can always be overridden if necessary. Consider website filtering. “It can help to get some Web filtering software or appliance,” Ducklin says. “It will pre-filter websites your users are visiting, and analyzing the content coming in from them. That way, if a user does fall for the trick, and tries to visit a bad site, you can head it off.” Make sure users know what not to do. Education is your best tool in fighting scareware. Begin by making sure users know what brand of security software your company is using, and that no other security software should run on company-owned equipment. Next, make sure they know that if a pop-up or balloon appears, they should not click anywhere on it. “Don’t touch it!” warns David Bateman, who leads the Internet Safety Group at K&L Gates, a law firm representing Microsoft in its joint lawsuits with Washington state against eight scareware purveyors. “Even if you think you’re clicking the X button to close the window, sometimes those are fake and will begin a download. But nothing can download without the user taking some action.” Instead, users should either use control-alt-delete to close the window from the Windows Task Manager, or call for IT assistance. What if the balloon is a legitimate Windows Security Center warning? “If you need to run security software, open the Control Panel, go to the Windows Security Center, and run it from there,” Bateman advises. “That way, you’re safe.”

Use IT Asset Management for Software Compliance

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Less is not more when it comes to software compliance. Most companies want to do right, but many are not in compliance and admit they don’t have the time or budget to get there. But if they realized that an initial investment in an automated IT asset management system could save them time and money down the line, more would probably sign up today. A recent survey by King Research revealed that 60 percent of IT executives and managers believe they have unlicensed software deployed and 73 percent of that same group responded that they are not prepared for a software audit. Diane Hagglund, senior analyst at King Research, who authored the survey, says that a lot of IT professionals are doing piecemeal work that’s not end-to-end. These piecemeal tools don’t roll up into a report which could show which computers and software are not in compliance. “This survey paints a picture that screams for automated solutions.” The survey was sponsored by KACE, a Mountain View, Calif. company that specializes in IT asset management software solutions through their flagship product, KBOX. Rob Meinhardt, KACE co-founder and CEO says a lot of companies think they’re compliant, but they still feel there’s software out in their system that they don’t know about. He adds that many of them have antiquated inventory protocols that track inventory on the way in, but few companies feel confident that their technology can identify everything. “We find what’s on those machines and give the ability to meter and monitor, so customers are more certain of what they don’t know,” Meinhardt says. Aids negotiating with software vendors With KBOX, IT managers at a press of a button can slice and dice reports to see which computers have what software program on them and which staff members have been running what specific software program. For example, you may have 75 licenses for Adobe, but a KBOX report shows only 20 people using Adobe at any given time. With this data, you can renegotiate with software vendors. Michael Heuer, technology solution services customer support manager of Portland Community College and longtime KACE user, knows his records are better than those of his software vendors. “They change hands through acquisitions, which changes the starting point, but we know what our licensing arrangements are,” he says. “We can be very candid when negotiating for software and we ask what extra services we can get without spending a lot of money. Also, we proactively do compliance with our software vendors and have a strong partnership with them.” IT asset management helps save time and money Of those companies that are in compliance, some may not know that they can even save more money through purchasing an automated IT asset management system. These systems can figure out usage, which do not appear in vendor audits, and can show the IT manager which software programs are not being used on a daily basis. With this information, the IT department can better negotiate with software vendors and prevent the overbuying of seat licenses. “Vendors don’t care if software is being used,” says Kris Barker, CEO of Express Metrix, a Seattle-based software vendor specializing in asset management solutions. “They just care that it’s installed. Usage doesn’t matter to the vendor, but usage to the company does matter since it affects costs.” Express Metrix’s Express Software Manager Professional program has a control application function that enables companies to follow the concurrent licensing model so they can save money on software licenses. For instance, they may have 150 concurrent licenses, but their vendor requirement states they must only have 50 users running it at same time to meet compliance. The program lets companies save money, says Bob Ritger, IT Director of Payette Associates, Inc. a Boston-based architectural firm that uses Express Metrix. The company can make sure all employees are using the same version of software, such as Internet Explorer version 7.0 versus 6.0, he says. “The savings are significant since we’ve cut back on licenses we don’t need,” Ritger says. Avoid software noncompliance audits Peter Beruk, a consultant in compliance marketing with the Business Software Alliance (BSA), a Washington, D.C.-based industry group, notes that IT asset management plans can help stave off an outside audit by software companies or watchdog groups, such as BSA. The easy part is taking the inventory and the hard part is figuring out what the company has done historically when purchasing software licenses, Beruk says. For instance, if the company tracks its assets through expense reports, it will have a harder time finding its software license records, than if it uses an asset management tool. The BSA offers a large number of free tools available from its website, and it has contracted with several vendors including Express Metrix that will scan new software installations at no charge to track unlicensed software. “Any business is one phone call away from being reported or having unauthorized software, so it’s really incumbent on the business to know its own compliance with the software it’s using,” Beruk says.” Barker agrees that successful IT asset management comes from using a tool along with their planning and processes. “Successful companies understand IT asset management in that it affects everyone across the company and they buy in that it will make a huge difference in a company’s bottom line,” Barker says.

Play Hardball Over Software Licenses

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Software vendors are waking up to the fact that software negotiations aren’t one-sided anymore. In fact, small and mid-sized businesses may even be able to use conditions in the software market to their advantage and gain the upper hand. The fact that software is now being sold over the Web as a service, combined with the growth of the open-source movement, has sent the cost of a lot software lower — in fact, some programs that small businesses can use are even free. Meanwhile, competition in the software market is booming. There are “some incredibly fast-growing software vendors that are building a better mousetrap and no one knows about them,” says Michael G. Oxley, former US Congressmen (R-OH), and co-author of the Sarbanes-Oxley Act of 2002 (SOX), which requires public companies to certify the integrity of their financial records, is now an attorney with Baker Hostetler in Washington, D.C. Oxley says that software companies need to take advantage of the proliferation of software vendors out on the market today. Vendor selection smarts Although IT managers may not have as much experience as a sales rep when it comes to the negotiation conversation, a few key pointers can make all the difference for gaining favorable contract and license terms. Start with a wide field and then narrow it down. Once you have two prime candidates, you can start the negotiations. Your goal should be a contract that allows for growth, flexibility, and price protection. Just hold your cards close so that you’re not giving away your bargaining chips. What you should try to demand Better definitions of users. There should be a provision in the contract that allows for additional users if the company grows. Ideally, the software vendor should set up the equivalent of a shopping cart to make it easier for the company to add additional licenses, but R. “Ray” Wang, principal analyst for Forrester Research, says that most of all, businesses need to quickly establish price protection. When this is established, companies will know exactly how pricing and vendor discounts are determined. Don’t buy all of your seat licenses at once. For instance, if you only need 25 seats, make sure you negotiate for 50 so when you lose 25 (this is accounting for the give and take of negotiation), you’ll have achieved your initial goal. Wang says that you also don’t want to pay for more software than you actually need. If your software becomes shelfware (unused software) or if you fall short in the number of users, then the vendor should give you a full refund. He also adds that companies should negotiate 25 seats over the course of three years, rather than deploying 100 seats at once. Wang says, “Be cautious with your comments to the sales reps…. If I’ve got 100 seats, I’ll need software for less than that.” Better ownership rights. Give affiliates and contractors access to the software, which can also include managed hosting providers and other third-party providers. Full disclosure in contracts and vendor financial records. Companies should have access to customer lists, legal and performance issues, bugs, as well as financial performance. Maintenance. Wang adds that companies need to keep their maintenance costs low at around 20-25 percent, which is the equivalent of purchasing new software every four to five years (in a 10-year software lifecycle). According to Wang, vendors should also price fix regular maintenance updates and that these updates should be tracked. Deals on other software. If the manufacturer has other products your business could use, try to negotiate a package deal for both.  Both Wang and Oxley agree that it’s important to hire legal counsel whenever there’s a contract involved, but having extensive knowledge about the negotiation process will help you get the best possible deal since IT managers work directly with all involved parties. Draft your own contract Although writing your own contract is a lot more work that using the one provided by the vendor, the results will be worth the time and effort. In today’s economy, IT managers are the go-to people to solve business and technology issues, as they are the ones who understand their software’s lifecycle best. It’s crucial that IT managers understand the importance of education, research, and discussions amongst their peers to make wise software choices and save money for their businesses.

The Software License Police

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Don’t take let your business take software for granted. After you pay for the package, your obligation to the manufacturer doesn’t end — ever. Part of your agreement in buying software involves pledging to carry out the terms of the manufacturer’s license and warranties. And watch out if you violate those agreements. Having too many users for too few computers or letting staff copy software onto their home computers may be a violation of those terms that could cost your business. The Business Software Alliance (BSA), a Washington, D.C.-based industry group, sometimes audits firms for members. Fines can run up to $150,000, paid to the manufacturer, which adds up to a costly piece of software. Software is an intellectual property, like music, books, and art, and the real cost of the software is not the actual software, but the license to use it properly. The sooner companies understand and comply with the fine print in licensing agreements, they better equipped they’ll be in avoiding the consequences of software violations. Avoiding violating software terms Here are tips to avoid software licensing problems — and potentially costly fines — at your business: Set the tone from the top down. Top management must communicate to their staff the importance of keeping up-to-date with software licenses and must stress that violations will not be tolerated. Jenny Blank, BSA’s senior director of legal affairs, says employees must be informed of their company’s software policy so they can avoid the “I just didn’t know” excuse many violators commonly use. Appoint a software manager. This person’s responsibility is to retain files on all the software licenses and warranties, conduct audits, keep up with tools, resources and upgrades, take inventories, and distribute software property rights information to the staff. Use a managed software provider (MSP). Since managed service providers host their client’s software, software compliance is generally assured. Janel Ryan, product manager at SunGard Availability Services in Wayne, Penn., says that as a Microsoft Gold Partner, they have a blanket license key that reports to Microsoft how many licenses and customers they have. When companies hire an MSP to keep track of their long software key identifiers and work directly with software vendors, then the burden of software compliance doesn’t have to fall on a few people at a small company. Use BSA’s tools and resources. On BSA’s website, businesses can access the organization’s “Tools and Resources” page, which offers free 30-day trials of automated software audit tools, IT manager tracking/compliance sheets, guides about software piracy, and more.  On the software side R. “Ray” Wang, principal analyst for Forrester Research, says software companies can also make compliance easier by allowing companies to add users with the touch of a button, instead of having them wait weeks for approvals and contracts. “Doing so would save the vendor a lot of grief and the companies would add additional users as they grow,” Wang says. It’s easy for small businesses to ignore software compliance because some might consider software a support function that doesn’t directly affect their bottom line. Wang says most people don’t go out of their way to commit software violations, since some don’t know how many licenses they should have or what compliance laws they have broken. However, these excuses won’t exonerate a business that violates these agreements.

Let’s Get Visible: Supply Chain Technology

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To understand why small businesses should care about supply chain management software, you could read a bunch of analysts’ reports explaining the good that can come from automating the process of turning raw materials into finished goods and getting them to customers. Or you could just talk to people such as James Van Dyke and Taylor Gordon. Van Dyke is president of Electronics Assemblers Inc., a 60-person custom electronics manufacturer in Hood River, Ore., an hour’s drive east of Portland. Gordon is a supply chain analyst at Myers Container/CMS LLC, a 91-year-old Portland company that makes industrial steel drums and containers. Listen to either long enough and it’s clear how important it is for a small company to manage its supply chain in the most efficient, cost-effective and collaborative way possible. Big corporations have used supply chain management and enterprise resource planning (ERP) software, for years, as well as newer technologies such as radio frequency identification (RFID) chips. Not so small businesses, many of which still rely on paper and pencil or outdated software because upgrading would be too costly and time consuming. Supply chain management that works That’s changing, as more small businesses see the value in having a better window into their supply-chain process. In fact, according to a recent AMR Research survey of 336 U.S. and European companies, in 2008 mid-market companies will be “aggressive” in buying supply-chain management software, due to continued pressure to reduce manufacturing costs and to help customers reduce their own costs. Customers “expect their own suppliers, regardless of size, to comply with their demands, which more often than not require investment in supply chain technologies,” AMR Research analysts John Fontanella and Eric Klein write in the report. Van Dyke’s business, Electronic Assemblers Inc., makes electromechanical and cable subassemblies for HP and other local high-tech companies. According to Van Dyke, supply chain management technology can be as basic as using Microsoft Windows programs. EAI relies on four – Windows Explorer, Exchange, Internet Explorer and Excel – for everything from restricting access to proprietary customer documentation to handling purchase orders to scanning websites for deals on electronics components. “Without it we’d be nowhere,” he says. The other part of EAI’s supply-chain management process is a material requirements planning (MRP) system called Alliance Manufacturing from Exact Software Americas. It tracks purchase orders, work orders, inventory levels and all other aspects of a manufacturing job. The software is expensive and it takes time to train people to use it. But it’s been worth every penny, Van Dyke says. “Ultimately where you end up is with a tool that allows you to treat materials planning like you treat your toaster. You don’t need to know how it works, you just use it to toast your toast,” he says. Fixing what’s broken Without good supply chain management, a company may lack access to vital information and the deficit can stop production from being as fast or efficient as possible. That’s the current situation at Myers Container/CMS, which has been limping along on paper-based systems and ERP software purchased in 1999 that wasn’t ever completely implemented, according to Gordon. “It’s not good enough to have the technology. If nobody’s using it, it won’t work,” he says. When new owners acquired Myers in late 2007, they hired Gordon to bring the company’s supply chain into the 21st century. As part of that, Gordon is analyzing existing software to decide if it can be upgraded, or if the company would be better off going with something completely different. The hope is that by upgrading “it’s very likely we’ll see high cost savings,” Gordon says. To learn more about supply-chain technology, Gordon joined the supply-chain management special interest group of an Oregon manufacturers’ consortium. He’s learning about innovations by visiting fellow special-interest group members’ factories to see the problems they’re facing first hand and to help brainstorm solutions. SIDEBAR: Supply Chain Management Technology Resources Some additional resources for learning about small and mid-sized business supply-chain management technology and practices include: Supply-Chain Council — This Washington, D.C., international non-profit publishes supply-chain standards and benchmarks used by more than 1,000 member companies of various sizes and industries. Supply Chain Management Review — The online version of this industry trade magazine has articles, white papers, newsletter, blogs, webcasts, message boards and links to other resources. The Supply Chain Management Research Center — The website for this research center housed at the University of Alabama’s Sam M. Walton College of Business has industry news, white papers and links to other resources. The center also sponsors an annual supply-chain management research conference.

When it Comes to VoIP, It’s Still Buyer Beware

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If a local telephone company runs into trouble, they’re required to give customers 30 days’ notice before they shut down. If an Internet-based phone company shuts down? Nothing. The boom in voice over Internet protocol phone (VoIP) service occurred so quickly that government regulations haven’t had a chance to keep up. As a result, businesses that use VoIP carriers don’t have the same types of protections should the provider run into trouble or go under as they would if they used a traditional phone company. State and federal regulators are working to close the gap. Meanwhile, companies using VoIP for any or all of their phone service are on their own to craft back-up plans. VoIP started out as a software-based method for making phone calls through a microphone and headset connected to a personal computer. Since then, the technology has evolved so that it can be used on PCs and laptops or traditional telephone handsets, and soon, cell phones. Companies such as Skype, which offers free software for computer-based VoIP service, have caused Internet phone service to grow to millions of users. Reasons for concern There are legitimate reasons for VoIP users to think they might need contingency plans. Despite its popularity, some VoIP carriers remain on rocky financial footing. Vonage Holdings Corp., the country’s biggest VoIP phone service, has 2.5 million customers and is signing up thousands more a month. But it is losing thousands of others every month due to service problems, and in recent months has paid more than $239 million to settle patent infringement lawsuits, adding to its short-term debts and causing auditors to question the company’s ability to stay in business. SunRocket, another largeVoIPcarrier, abruptly closed its doors in July 2007 due to financial difficulties, leaving 200,000 customers in the lurch. When that happened, SunRocket competitors stepped in to pick up the company’s customers, and some even honored annual subscription fees some users had already prepaid. State and federal regulators are slowly moving to bring VoIP regulations in line with rules governing other phone carriers. The U.S. Federal Communications Commission now requires that VoIP carriers offer 911 emergency calling services and pay into a universal service fund that subsidizes phone service for low-income families. The FCC recently passed a number portability regulation, so after March 24, 2008 customers who want to change carriers can take their numbers with them, according to Mark Wigfield, an FCC spokesman in Washington D.C. “The commission started with a blank slate in terms of what needed to be regulated and is going after issues in order of priority,” Wigfield says. What you should do If a company goes out of business, being able to take your phone number to a different VoIP carrier is a step in the right direction, Wigfield says. Other steps that small businesses can take: Know what you’re getting. Use resources like The VoIP Mechanic or the FCC’s Consumer Fact Sheet on VoIP to find out more about services, plans and providers. VoIP Action, a VoIP industry news website lists information on terminology and plans, and has a checklist of things to consider when choosing a carrier. Check out carriers before signing a contract. After SunRocket folded, former customers used public message boards to share their experiences of scrambling to find new phone service. In their posted comments, they suggested checking out a potential provider with the Better Business Bureau, reading customer comments on public forums and blogs to find out what kind of service history a provider has, and even switching back to land-line phone service. Read contracts so you understand what remedies may or may not be available should something happen to the carrier. If you have a complaint, file it with your state public utility commission or consumer protection agency, a directory of which can be found at the website of theNational Association of Regulatory Utility Commissioners. Some state agencies have created VoIP fact sheets, such as this VoIP consumer alert from the Vermont Department of Public Service. Or use this form to register a complaint with the FCC, says Wigfield, the FCC representative. The issue of carrier stability could abate as more regulations take effect and more established players get into the VoIP business. T-Mobile, for example, recently introduced a $10 a monthly unlimited local and domestic long-distance VoIP plan for its wireless subscribers. Comcast, better known as a cable TV and Internet provider, has a similar VoIP phone service.

Bet on Telephone Headsets

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The crew at Karen Pierce Gonzalez’s public relations firm couldn’t function without telephone headsets. The staff of the three-person company near Santa Rosa, Calif., spends so much time on the phone during the workday that headsets are a must, and not just any will do. According to Pierce Gonzalez, cheap models aren’t worth the investment because static starts creeping into the earpieces about the time the warranty expires. Yes, over-the-head models muss their wearers’ hair every time they’re removed, and earpieces don’t always stay in place. But that’s a small price to pay for relieving the pain that comes with cradling a phone between your ear and shoulder all day. “Just thinking about it makes my neck hurt,” Pierce Gonzalez says. As Pierce Gonzalez’s experience shows, people take their headsets seriously. If recent trends are an indication, the day is coming when wearing a telephone headset for work will be almost as ordinary as, well, using the telephone. Not just for customer service reps anymore Wearing a headset used to peg someone as a receptionist or customer service agent. But the era of cell phones, Internet phones, iPods, and video games has erased any stigma associated with working while something’s stuck in your ear. Industry experts say headsets could become even more commonplace after California, Washington, and New Jersey later this year join the rank of states with laws banning people from talking on hand-held cell phones. When deciding what to buy, some things companies should consider: Wireless — Wireless headsets are the fastest growing segment of the business, thanks in part to lightweight batteries that last longer between charges than older models. “Once you cut the cord, there’s a lot you can do to unleash it to a lot more people in the building,” says Joe McGrogan, director of business-to-business marketing at Plantronics, a leading U.S. headset maker. Some new wireless headsets can be used with multiple phones, allowing the wearer to switch between a cell phone and office phone without switching headsets. Other models let the wearer answer or hang up a call by pushing a button on the headset, McGrogan says. Frequencies — Wireless headsets operate on multiple frequencies to transmit voice signals to and from a telephone base station, and the higher the frequency, the better the clarity and range. Today’s high-end headsets use a 1.9 GHz frequency, which the U.S. Federal Communications Commission opened up for voice-only communications in 2005. Other models use 900MHz, 2.4GHz and 5.8GHz. Bluetooth — This short range wireless technology developed by a consortium of major telecommunications players including Motorola, Nokia, Microsoft, and IBM allows someone using a Bluetooth wireless headset to connect to other Bluetooth enabled devices like cell phones, computers and printers. Wired — Although wireless gets all the hype, companies like Plantronics still sell as many corded headsets as they do cordless, McGrogan says. What can you expect to pay? Prices for corded headsets range from $25 to $100. New wireless models with all the bells and whistles cost from $200 to $400, according to McGrogan and other sources. SIDEBAR: Headset resources Telephone headsets aren’t hard to find. Small and mid-sized businesses will see a healthy selection at office supply stores such as Office Depot and Staples. Online specialty retailers such as Hello Direct and Headsets.com have a larger selection. Some small-business telecommunications vendors also carry the gear or can tell companies where to find it. For additional information on headsets suitable for office and mobile workers, check out the following online resources: An interactive selector on the website of Sennheiser Communications, a European telecommunications equipment reseller, lets people select their preferred use, style and brand and then spits out a list of equipment that matches their needs. Plantronics has a similar online tool customers can use to view the company’s products for office, mobile, and home phones. Amazon.com has a telephone headsets page with equipment from a variety of manufacturers and online stores searchable by brand, seller, or price. If you’re thinking of going wireless, read  this white paper on choosing a wireless headset at Headsets.com

Pick and Choose: Social Networking Vendors

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Imagine shopping for a new car and having 80 auto makers to choose from. Intimidating, right? Well, to all small businesses planning to set up an in-house social network, consider yourselves warned. The more popular social networks become and companies see the benefit of deploying them internally as well as externally, the more technology vendors venture into the business. Jeremiah Owyang, an analyst at Forrester Research in Cambridge, Mass., estimates 80 companies now offer enterprise social network platforms, and dozens more sell software and services for blogging, wikis and other iterations of Web 2.0. But before meeting with sales reps, company managers should consider what they want an internal social network to do, who’ll use it, and how it could grow over time — in other words have a plan. Those decisions will drive the technology and delivery method you choose, industry experts say. Determine how a network will be used A company may want an in-house network — often referred to as a community or employee network when it’s inside a business — to: Foster collaboration between workers Identify and cultivate “star” employees Maintain the corporate knowledge pool Keep tabs on departing employees Certain vendors are better at some niches than others, says Rachel Happe, a research manager with technology researcher at IDC. Or a company might start an employee network now and add an in-house blog or other Web 2.0 applications later, so they’ll want a platform that can grow with them, she says. When Scott Westfahl left his professional development job at McKinsey & Co.for a similar post in Washington D.C., at Goodwin Procter, a high-profile law firm, he wanted to duplicate the same high-caliber alumni network McKinsey operated. That led him to partner with SelectMinds, a social network vendor that got started creating university alumni networks. Goodwin Procter’s alumni network debuted in September 2006, and includes a searchable employee and alumni directory, job board, and career counseling center. Since then, 70 percent of the firm’s current attorneys have signed on, as well as 550 alumni. It’s become a great tool for, among other things, helping associates who don’t make the partnership track to find new jobs, Westfahl says. “I want them to be part of our network because they could be a potential client, but it also shows that the firm still cares about their development after they leave.” Other factors companies should consider when choosing an enterprise network platform: Whether to license social network software or sign up with a hosted, software-as-a-service provider. Companies with an IT staff might choose the former, while companies without much technical expertise might choose the later. What person or people will oversee the network? Depending on how it’s used, that individual could come from product development, marketing or HR, analysts say. What policies are needed to address issues of proper use, security, and privacy? Policies should be set down in writing. “Will you let employees set up interest groups around biking or knitting, or is this just business? Either is valid, but be clear about what your expected use is,” IDC’s Happe says. How long a vendor has been in business and who their customers are: the closer the match to your company plans to use the technology, the better, analysts say. They also recommend creating an exit strategy in the event a vendor gets acquired or goes out of business. SIDEBAR: Vendors galore With a plan in place, it’s time to sift through vendors. Bigger companies might work with a consultant or purchase market reports from companies like IDC or Forrester that spell out who’s who among enterprise social network vendors. There’s also plenty of free information about the vendors to on blog posts like this vendor list on Web Strategist, a blog Jeremiah Owyang started before he joined Forrester. Companies can also keep tabs on vendors at Groundswell, a social networking technology blog written by fellow Forrester consultant Charlene Li.

The Urge to Purge: When to Dump Data

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Does your company have a data deletion and retention policy? If not, it’s time to create one, experts say. In today’s business climate, every keystroke you make on your computer can leave a trace on disks and tapes. Even if you think you’ve deleted it, forensic experts or others may be able to resurrect it. And if your company houses such personal information as client credit-card numbers, healthcare data, or proprietary government information, the more careful you must be. The bottom line? You need to safeguard your business from a potential lawsuit. New “safe harbor” rules Under new e-discovery rules, companies following consistent data-deletion policies won’t be held liable for no longer having certain records in their possession. The new “safe harbor” rules, adopted in December 2006, amend the Federal Rules of Civil Procedure. Similar rules are recognized by the National Institute of Standards and Technology (NIST) and other international standards-making bodies. “U.S. and international standards require the regular deletion of sensitive data,” explains Peter Adler, a data and privacy lawyer who heads Alexandria, Va.-based InfoCounsel LLC. “You won’t be sanctioned if you’ve deleted the data.” Nonetheless, companies are reluctant to take this step. “Most companies don’t have formal policies in place,” notes Brian Babineau, senior analyst with the Milford, Mass.-based Enterprise Strategy Group. A big reason? “Most [corporate] attorneys are reluctant to get rid of anything important, and don’t want their clients to look as if they are hiding something by deleting it,” Babineau says. How often you should dump data But having a policy, and following it, could protect your company. How often should you delete or overwrite certain data? It depends what kind of data it is, experts say. If it’s e-mail, companies may wish to delete frequently. “The Washington, D.C. [city] government just implemented an every-90-day destruction of e-mail rule,” notes Adler. Some companies delete e-mail as often as every 30 days, he says. But for other data, companies may opt to purge it every three to every seven years.  “We are seeing companies on a three-year cycle, who are just retiring a desktop computer after three years and destroying everything on it,” notes Babineau. Not all data can follow a set cycle. For example, the U.S. Internal Revenue Service advises individuals and businesses to keep basic tax records for at least three years, and basic employment tax records for four years. But there are exceptions to these basics, and the onus is on the filer to follow the rules. Deletion options What’s the best deletion solution for your business? It may ultimately depend on the sensitivity of the data your company stores. First, you must determine how many copies of the data you have, and where it’s housed, by using indexing and search software, notes Babineau. Once you’ve identified what needs to be deleted, here are a few options: Wiping/Overwriting: This technique literally overwrites a hard drive with gobbledygook so it can’t be read. For smaller companies, a good wiping is probably all that’s needed, says Jesse Lindmar, computer forensics division director of Miles Technologies, a Moorestown, N.J. computer consulting firm. With smaller companies, where cost is an issue, “there is no need to physically destroy devices that can be reused,” Lindmar says.  The U.S. Department of Defense standard wipe constitutes seven sequential overwrites, Lindmar notes. “The data is not coming back unless you have unlimited time, resources and/or access to high-level laboratory equipment.” Lindmar recommends wiping software such as Intelligent Computer Solutions Inc.’s WipeMaSSter, Active@KillDisk, Jetico BCWipe and WipeDrive. Degaussing: Degaussing involves running a hard drive through enough electric and magnetic energy to fry it so it can’t be read, explains InfoCounsel’s Adler. While the hard drive can be used again, Adler warns that degaussing “is only as good as the organization who does it,” and doesn’t always foil data recovery. Destroying: Actually shredding and disposing of the hard drive. “It’s so inexpensive to do this,” notes Elizabeth Wilmot, president of Capitol Heights, Maryland-based DataKillers. DataKillers will destroy 10 hard drives for $15.50 per hard drive, and notes that replacing hard drives has never been cheaper. “If you have it, it can become fodder for a lawsuit,” she says. “If in doubt, shred it.” While developing a data retention/deletion policy is complex — and likely to involve records management as well — it is a necessary evil, experts say. “It’s best to err on the side of being protected,” says Wilmot.