May 2015

The State Department’s Weary Soldier in America’s Cyber War

A new age of cyberwarfare is dawning, and a little-known State Department official named Christopher Painter -- a self-described computer geek who made his name prosecuting hackers -- is racing to digital battlegrounds around the world to help stave off potential future threats. One of his stops was in South America, where he visited Argentina, Chile, and Uruguay, to hear about what those countries were doing to protect computer networks. One was in Costa Rica, to tout the US vision for the Internet, including security. Another was in The Hague, to, among other things, promote international cooperation in cyberspace.

“It’s been a hectic couple of weeks,” he said. Painter is charged with finding answers to some of thorniest policy questions confronting Washington in the digital age: How to wage cyber war, how not to, and how nations can or even should cooperate on establishing rules for cyber offense. Countries have found it so hard to sort out answers to these difficult subjects, Painter is setting his sights low, at least for now. One of his initial goals: Promoting a set of voluntary international standards, such as one that says that nations should not knowingly support online activities that damage critical infrastructure that provides services to the public.

Sen Corker 'shocked' that NSA collecting 'little data’

Sen Bob Corker (R-TN) suggested that a controversial National Security Agency surveillance program should be broadened, saying he was "shocked" at what he said was a limited amount of data being collected. "I think there was an ‘ah ha’ moment yesterday for people on both sides of the aisle when they realized how little data is being collected," Sen Corker said. "I think it's shocking to know this." Senators huddled with administration officials, including FBI Director James Comey, as part of a classified briefing.

Sen Corker, who said he couldn't discuss the details of the meeting or what he believes are the gaps in the current program, suggested it was a "potential game changer." Sen Corker, who opposes the USA Freedom Act, told reporters that the metadata program "needs to be ramped up hugely." "The way it's being implemented today, I don't see how it's much useful at all to the American people, and I'm shocked again by the small amount of data," he said. "The program is not the program I thought it was, not even close." He added that "it's almost malpractice. Malpractice is the best word I can use to describe the amount of data that is actually being collected in the metadata program. ...It's beyond belief how little data is a part of the program and type of data especially if the goal is to deal with terrorists."

DHS Cyber Exec: Cyberthreats Will Keep Coming if Public and Private Sectors Don't Collaborate

Public-private partnerships are the key to robust national cybersecurity, according to Peter Fonash, chief technology officer for the Department of Homeland Security's Cybersecurity and Communications Office. Still, they're unlikely to happen until both sectors can communicate better. Cyber breaches have been getting worse over the years, Fonash said. He referenced two key statistics from a recent Verizon Data Breach Investigation Report that shows two particular trend-lines between 2004 and 2013: one for the percent of time that compromising a system took a day or less, and another, much lower, for the percent of time that the discovery of breaches took a day or less. “Unfortunately, the slope of the [bad guys'] curve is greater than the slope of the good guys,” he said. “How we do business today is not working. The problem was bad in [2004], and it’s gotten worse in 2013. And I would suspect the trend is not getting better.”

DHS works with the National Security Agency, the FBI, and other organizations on cybersecurity, focusing primarily on protecting dot-gov systems, Fonash said. Their programs include the intrusion prevention system Einstein, whose sensors are meant to monitor Internet traffic, and “Enhanced Cybersecurity Services," which aims to help businesses strengthen their cybersecurity protection.

The Democratic advantage in digital, data, and analytics isn’t going away easily

[Commentary] Ted Cruz raises $1 million in the 24 hours after he announced his candidacy, and reporting highlights the “10 staffers who hold PhDs in behavioral science or analytics” who were behind the scenes trying to “maximize the output of their potential targets.” Meanwhile, Hillary Clinton’s campaign promises to “be staffed with more than 1,000 data geeks, techies and digital gurus.” In other words, the 2016 campaign is just beginning, and already “data,” “analytics,” “tech,” and “digital” seem even more prominent than in 2012. Much is said about the growing importance of these tools in modern campaigns. But less is said about the challenges inherent in using these tools. As John Sides and Lynn Vavreck argue, these tools require significant amounts of expertise and monetary resources.

In a paper that Christopher Jasinski and I will present at the upcoming American Political Science Association annual meeting, we examined the people who worked in digital media, data, and analytics on presidential primary and general election campaigns from 2004-2012. We built an innovative data set that marries Federal Election Commission and other data (from Democracy in Action) with LinkedIn data. This enabled us to chart the careers of 626 staffers that worked in digital, data, and analytics on these campaigns. Here is what we found:

First, we found very uneven levels of professionalization. Very few staffers work in digital, data, and/or analytics on multiple campaigns. Put differently, there are few career campaign staffers in these areas.

Second, we found a vast gulf between Democrats and Republicans. From 2004-2012, Democratic campaigns hired 503 staffers in digital, data, and analytics, compared with 123 Republican staffers. But the gulf goes beyond that. We also looked at the flow of staffers from the technology industry and commercial sector into politics. Campaigns that can attract talent from outside industry are likely to be more innovative and able to use the best practices of other fields. Here again, the Democratic Party was far more adept at attracting this talent from outside of politics than were Republicans.

[Daniel Kreiss is an assistnat professor at the University of North Carolina School of Journalism and Mass Communication]

Facebook's study of news revealed its plans to be the next top search engine

Facebook posted a study on what Americans see in the News Feed from "ideologically diverse" sources. The company created a bot to categorize news based on headlines and the first few words of an article. However, the bot revealed more about Facebook's future plans to expand its search capabilities than it did about user echo chambers.

Why the study is so easily criticized: The sample set doesn't reflect the average American. Facebook found that only about a quarter of politically affiliated American users are exposed to ideologically diverse news. Only 9 percent of US-based Facebook users post a political affiliation. A study about a self-identifying minority is a study about silos. If they show little to no correlative relationship to their sources of news, the silos would be debunked. But the study shows the opposite. What the bot is really telling us: Facebook is building a search engine to rival Google. The bot is a preview of how that search will rank stories. John Constine and Kyle Russell at TechCrunch shared screenshots of a newly discovered way to use Facebook search. The "Add a Link" function lets you post search results to your page that originally come from outside of Facebook. And how do you see webpage search results inside Facebook of webpages that live outside of Facebook unless you first index those pages? And how do you target those search results based on user preference? You use web crawling bots that read quickly and correlate user data and content. Facebook has already crawled 1 trillion link posts inside Facebook. Now it just has to crawl everything else on the World Wide Web. What will it look like? Something like what Google+ was supposed to be, but if the "+" part came first.

Rentrak Making TV Measurement Headway

Growing acceptance over the past several years of Rentrak's TV viewing data as at least a complement to Nielsen's has resulted in tangible benefits for TV stations and media agencies. But challenges remain for the ratings upstart. TV station executives -- particularly those in small diary-only markets -- say the more detailed and immediate Rentrak numbers have improved their selling position, and media agencies say they like Rentrak's melding of viewership and product purchasing data. "There are benefits to us intrinsically and benefits that are specific to what we are able to generate as a better resource to our [advertising] customers,” says Tim Busch, executive vice president of Nexstar Broadcasting, a mid-size TV group that has been with Rentrak since 2010.

Bonten Media Group, which has used Rentrak since 2011, says its late evening newscasts -- especially on its Fox affiliates -- have seen sharp growth in ratings. “Typically the Fox affiliates get under-reported by Nielsen,” says Randy Bongarten, CEO of Bonten Media. “Before, the ratings with Nielsen were less than half." Looking at a wide range of TV station clients, Steven Walsh, executive vice president of local television for Rentrak, says generally two key time periods have seen higher results: late fringe and early morning. TV stations, which had been getting microscopic or no ratings at all for specific TV shows, now have competing data that can’t be ignored, Walsh says. “Now you can have a negotiation.” Challenges remain, however, including figuring out how to track mobile, tablet, online and over-the-top viewing.

Why the Verizon-AOL deal just might work: Mobile video ads are worth a lot

For many onlookers, Verizon’s $4.4 billion acquisition of AOL echoed another multibillion dollar deal -- AOL's own $162 billion acquisition of Time Warner more than 15 years ago. That deal famously collapsed before the end of the decade. But Verizon’s move may differ because of one salient fact: there’s a ton of money in the video advertising being increasingly watched on mobile devices.

"AOL was in no position to monetize Time Warner Online properties last time around," said Rebecca Lieb, of the Altimeter Group. "Time Warner, in essence, bought what was then an Internet service provider. The thinking was ‘this Internet thing is going to be big,’ but beyond that there was little synergy. This time around, an ISP, Verizon, is buying a former ISP. AOL is no longer an Internet service provider or a portal. It's an advertising technology company." From a contrarian perspective, even AOL’s mobile advertising technology may not help Verizon compete with juggernauts like Google. And mobile ad spending can’t possibly continue to grow at such staggering rates forever. In today's mobile ad gold rush, AOL still only has a tiny slice of the worldwide digital ad revenue. Which line of thinking will win out? Analysts seem to lean more toward optimism. "The legacy telecom companies realize that as they try to develop new avenues for growth -- in Verizon’s case via digital content such as video delivered through FIOS, Verizon Wireless, and as an over-the-top service available via any broadband connection -- effectively monetizing those services will be a critical part of the profit equation," said Bill Menezes, an analyst with Gartner. "Verizon needs to become more like the companies that successfully have created core digital content and ad businesses -- Google and Facebook notably -- and the AOL platforms are a part of what they need to make that happen."

What AOL meant to Washington’s tech industry

AOL may have moved its headquarters from the Washington (DC) area long ago, but business leaders in the region say the media company has long been one of the chief forces that shaped the region’s technology ethos. The announcement that Verizon is set to buy the company that brought dial-up Internet to millions of Americans is the latest chapter in the online giant’s storied history.

The journey began in 1985, when co-founders Jim Kimsey and Steve Case set up a company named Quantum Computer Services in Northern Virginia to offer online services. Less than a decade later, Quantum had renamed itself America Online and the company grew rapidly, helping ordinary folks connect over the Internet. The “Welcome! You’ve got mail” chime became a cultural phenomenon, and millions used the company’s Instant Messenger service to chat back and forth. As AOL grew, it quickly gobbled up a host of upstarts until, in 2001, it made its biggest splash, taking over the venerable media giant Time Warner. AOL used its high-flying stock to purchase the media conglomerate, but the marriage between old and new media proved to be a troubled one. “AOL has been a transformational engine for technology and innovation throughout our region,” said Bobbie Kilberg, president and chief executive of the Northern Virginia Technology Council. Steve Case went on to found Revolution LLC, an investment firm whose mission is to find and support grass-roots entrepreneurs, including those in the Washington region. Revolution is an investor in 1776, the DC-based tech incubator. AOL alumni went on to fuel a new wave of businesses in the region. Former LivingSocial chief executive Tim O’Shaughnessy is an AOL veteran. So is Lisa Hook, who leads Sterling (VA)-based telecommunications company Neustar. AOL’s presence in the Washington region today is made up of about 1,300 employees who work primarily in the company’s engineering and technical divisions. Baltimore (MD) is home to AOL’s advertising division, a legacy of the company’s 2004 purchase of Advertising.com and a key asset in Verizon’s purchase of AOL.

Five Things That You Probably Didn’t Know Verizon Will Own After the AOL Deal Closes

The pundits may all be touting how Verizon’s deal to purchase AOL Inc. for $4.4 billion will broaden their mobile video horizons and give them access to content an ad technology that could help revolutionize the online video industry, but there are a handful of other ancient technologies (10 years or more old, this is the Internet), products, services and companies that the wireless giant will inherit as part of the deal.

  1. Moviefone
  2. Netscape
  3. CompuServe
  4. Weblogs Inc
  5. AOLbyPhone

The Myth of Globalization in Consumer Tech

[Commentary] One of the more clear global consumer tech market trends I’m observing is the reverse of globalization. In nearly every category I study, I see the regionalization of consumer tech, not its globalization. This view of the market is showing how regional technology players in many segments of consumer tech are becoming more entrenched by catering deeply to local market needs, making it difficult for global players to enter and succeed. This is happening in consumer tech hardware, software and services.

Thomas Friedman’s view in "The World Is Falt", that technology has lowered the barrier to entry, is valid in many cases. However, with consumer tech products, it is likely to be harder to globalize and more dominated by local solutions. For a company to succeed globally, it has to focus on local insight to drive their strategy. It has to know the customs and be highly cognizant of the needs of a local market, and can’t assume a one-size-fits-all solution, like many do today with Facebook and Twitter. It is my conviction that, in this sense, the world of consumer tech may be more local than global. In this sense, the world of consumer tech is round.

[Ben Bajarin is a principal analyst at Creative Strategies Inc]