Cryptome reports that the US National Security Agency (NSA) has remote administrative access to several of the most popular Windows PC firewalls, and that it has also taken control of a number of supposedly “secure ” email services within the past few months.

 The article contends that personal computer firewall software products from MacAfee, Symantec, Zone Alarm all help Microsoft’s NSA-controlled remote admin access via ports 1024 – 1030 without using a security flag.

The Inquirer has this equally interesting food for thought:

“Certain privacy [and/or] full session SSL email hosting services have been purchased [or] changed operational control by NSA and affiliates within the past few months, through private intermediary entities.”

src: NSA 0wns popular ‘firewalls’ and ’secure’ e-mail services

I’m not a fan of spying on American citizens without a warrant, I’ve previously assaulted  AT&T with phrases like “the network you can trust is a fraud” and “the network you can’t afford to trust.”  The fact of the matter is, it isn’t simply a problem that is pervasive among a handful of corporations.  It’s how government and corporations are in bed together, how consumers and citizens do not have people protecting their rights and how NSA justice believes that balancing the harms, this is the only way to roll.

From Information Week: “Firefox gains on internet explorer in business”

If IE7 isn’t taking off in enterprises, it’s questionable whether Microsoft should expect any better in IE8. Analyst firm Gartner cautioned last month that IE8’s default standards mode could break enterprise applications. Apps might not render properly if they’ve been developed primarily for earlier, non-standards- compliant versions of IE. Gartner wrote then that companies should “strive to design for standards, not browsers.”

 Looking after the interests of end-users rather than corporate agendas?  Sounds like a plan to me!

Many companies appear to be perfectly content with staying with IE6 until they see something better. The same thinking has been part of the reason for the slow take-up of Windows Vista in enterprises. And some of the security features added by IE7 and IE8 don’t work unless Vista is installed, so the pace of Vista uptake could also weigh on IE’s own upgrades.

It makes sense that in business, upgrading browsers isn’t a big deal because the computer primary use should be focused on productivity and not web applications.  The only exception being Tech companies that focus on web design and development.

One of the sexier updates is the option to turn off the translucent menu bar, a point of contention among Mac users since it was first announced. Menus have also become less transparent allowing for easier viewing. A complete listing of all the 10.5.2 fixes and updates can be found here on Apple’s website.

This helps to explain why Apple has chosen to account for iPhone sales on a subscription basis, choosing to amortize the phones over a 24 month period.  In doing so, Apple can provide iPhone users with new features without having to charge them.

Download Kernel 2.6.24 — Linux Kernel Archives (Kernel.org)

• The latest stable version of the Linux kernel is:  2.6.24
• The latest snapshot for the stable Linux kernel tree is:  2.6.24-git2
• The latest 2.4 version of the Linux kernel is:  2.4.36
• The latest 2.2 version of the Linux kernel is:  2.2.27-rc2
• The latest prepatch for the 2.2 Linux kernel tree is:  2.2.27-rc2
• The latest -mm patch to the stable Linux kernels is:  2.6.24-rc8-mm1

If you need a dummy version of what changed, Kernel Newbies has the lowdown.

A funny thing happened the last time Apple released its earnings.  Looking forward to Q1 2008, Apple, which is notoriously conservative when it comes to earnings guidance, projected an aggressive EPS of $1.42 a share.  With Apple’s conference call set for tomorrow, analysts are expecting an EPS of $1.60.   And when all is said and done, look for Apple to release earnings tomorrow that will blow both of those numbers out of the water.

Though its stock price might indicate otherwise, Apple has never been better positioned to succeed, improve, and impress.  Apple’s line of Macbook laptops are selling at a record pace.  The iphone turned the telecommunications industry on its head and was able to garner an impressive share of the smartphone market in less than 8 months.  Apple stores are constantly packed with customers, its lineup of ipods has never been more diverse, and that’s just the beginning of the story.

How does this translate into higher earnings? 

1) iPods

Put simply, Apple is selling more ipods than anyone could have anticipated last October, save perhaps Apple.  For months, analysts were droning on about how the market for mp3 players was becoming saturated and that everyone who wanted an ipod most likely already had one.  What no one envisioned was just how popular Apple’s newest line of mp3 players (the ipod Touch and the updated ipod nano) would sell.  Even as I write this now on Wednesday afternoon, 5 of the top 8 items on Amazon’s bestselling electronics list are ipods.  Wall Street is expecting ipod sales of around 24 million units, but don’t be surprised to see Apple with a number close to, if not more than, 25 million units sold. 

Apple has been successful in continuously introducing new ipod models.  But more importantly, each new ipod model has something more to offer when compared against earlier models.  This is what continues to drive the phenomenal sales growth of Apple’s lineup of music players and what will undoubtedly be the reason why ipod sales will be larger than expected.

2) Macs

Looking past the mp3 player market, Apple’s refreshed line of imac desktop computers are also selling at an unprecedented rate.  In a recent note about Apple, RBC said that 25% of Best Buy representatives contacted noted that Macs were the number one selling PC at their stores.  This is an impressive number considering that Apple only accounts for 3 or so percent of the OS market share.  With that said, the bulk of Apple’s Mac revenue will be coming from its fleet of notebook computers, the macbook and macbook pro.  Just this summer, reports came out showing that 1 out of every 6 laptops purchased is a Mac and there is no reason to think that this trend was any different this past holiday season.

Apple’s Leopard (OS X.5) operating system has also been selling extremely well, and has decidedly outpaced sales of its previous operating system, Tiger (OS X.4).  Leopard was released this past October and it was impossible to predict how the release (which was delayed) would turn out.  Would there be bugs?  Would users care about its new features?  In fact, the release of Leopard was initially delayed so that Apple could devote more of its resources towards the iphone rollout in June ‘07, and there were definitely some questions as to whether or not Leopard was even polished enough to be released.  As it turns out, Leopard has been a resounding success.  Though there have been a few bumps along the way, users are by and large happy with Leopard and can expect to see a slew of  free incremental updates to the OS in the next few months.  Tellingly, a recent report noted that in the last month and a half, 81% of Apple buyers indicated that they were happy with their purchase of a Leopard loaded computer..  In comparison, around 50% of Windows XP owners were satisfied with their purchase, and only around 25% of Vista owners were pleased with theirs.

When you take all of this together, it’s clear that Apple desktop and notebook sales are surging.  Leopard is also selling extremely well, and might even be behind the explosive growth in Macs this past quarter.  That said, expect to see stronger than expected Mac sales announced tomorrow.

3) iPhone

Steve Jobs recently announced at Macworld that Apple has already sold 4 million iphones.  Wall Street was seemingly unimpressed as it was hoping for sales of 5 million.  The fact of the matter is that the 5 million magic number was never a goal of Apple’s nor even desired by Wall Street analysts.  “5 million iphones sold” was a rumor that made its way around the net with no substantive evidence to back it up.  What Apple has stated, however, is that it would like to sell 10 million iphones by the end of 2008, and before 2008 even began, Apple had almost reached 50% of its goal.

Apple is likely to see impressive iphone sales this past quarter given its recent and controversial price cut, coupled with sales overseas.  While there are reports out of Britain that the iphone is selling a little bit more lightly than expected, sales in other countries, such as France, are doing significantly better than expected.  All in all, the margins on Apple iphone’s are pretty high, and when one factors into the equation the monthly stream of revenue Apple receives from AT&T, Apple’s bottom line is looking pretty good this quarter.

Conclusion

Apple’s initial guidance was $ 1.42 a share on revenue of $9.42 billion, with Wall Street expecting an EPS of $1.60.  Given all of the above, however, look for Apple to destroy those earnings estimates with an EPS closer to $1.83 dollars a share and revenue well above $9.5 billion.  There is no doubt that Mac computers, ipods, and iphones are selling extremely well, and after tomorrow’s earnings report we’ll see that they’ve been selling even better than anyone could have anticipated. 

Industry sources are indicating that Microsoft plans to release Windows 7 (the follow up to Visa) in 2009, one year earlier than anticipated. Microsoft might be anxious to roll out a new update to its OS after the lukewarm reception had by Vista.

Microsoft, however, would be well-warned not to rush and push an unfinished product out the door. if you recall, Microsoft initially began working on what would become Vista in 2001. The project, initially codenamed “Longhorn”, was hampered by continuous delays and bugs, and when it was finally released, the public was less than thrilled. PC World even ranked it as the biggest tech disappointment of 2007. Tech analysts, and even Steve Ballmer himself, point out that Microsoft, in developing Vista, was trying to do too much, and as a result, the project was plagued with numerous delays and glitches.

Microsoft has hopefully learned its lesson and will now attempt to deliver incremental, yet value laden, OS updates that will actually get users excited.

From ArsTechnica, we’re learning just how hopeless we really are:

Windows Vista didn’t make a smooth market entrance; in fact, nearly every aspect of the operating system has been attacked since its release on January 30, 2007. Multiple SKUs allegedly confused customers, anti-DRM groups disliked Vista’s Protected Video Path and its overall DRM friendliness, and Microsoft’s definition of “Vista Capable” got the company sued. Toss in a plethora of bugs and the usual consumer backlash over GUI changes, and you’d think consumers would be avoiding Vista in droves. According to new information, however, they aren’t—Vista’s adoption rate over the past year actually exceeded XP’s in 2001, and consumers apparently choose Vista over XP by a 7:1 margin.

Article: “Despite problems, consumers choosing Vista over XP”

Apple commercials aside, I couldn’t imagine any consumers deciding to “upgrade to XP” over the previous installation of Windows Vista. It’s brilliant strategy and marketing on Apple’s part, but lets face it– people want change these days. The problem with Vista’s image is in large part tied to the corporation that seems to play the role of the ’status quo’ and is synonymous with failures in innovation on the OS front.

Don’t get me wrong, I’m not anti-Microsoft or anything and I must admit that it’s just a silly expectation that people would stick with XP over Vista. (Although I did!) Remember, a lot of companies and typical consumers don’t have a choice when they invest in new hardware. People have to go out of their way to get a souped up computer with an older OS that favors stability over ‘performance’ enhancements.

In the end, this just boils down to fan boy vs. anti-fan boy propaganda. Migration will happen, PC’s aren’t going to die to the new juggernaut on the street. (Apple) The world will continue to spin and humans will continue to make dumb decisions because it’s easier that way.

Let’s flame Bill Gates and Microsoft for a moment, shall we?

Bill Gates continues to show why Microsoft never ‘got it.’

Bill Gates recently lamented the problem with Business and Computing. No one pays any attention to Business! I wonder if this is some odd way of saying, “Vista sucks because consumers aren’t sophisticated enough to use it, but maybe if we focused on business…”

“The business computing market, which is way bigger than the consumer computing market, no one pays attention to it,” the Microsoft chairman said. Then he called us out: “Even in the Wall Street Journal, and you think, oh, this is the paper they’re going to tell me about business computing; no, it’s all about consumer computing.

Quick, someone get Bill Gates a Pacifier!

Sorry to tell ya, but consumer computing matters, Mr. Gates! For all of your genius and wealth, you never had a good grasp of how your company’s decisions have affected the average consumer over time. The fact that you’ve neglected the end-user for so long has made Microsoft vulnerable to competition.

Think about the purpose of a number of platforms out there. Forget Apple and it’s iMac line of computers, but what about Open Source OS platforms like Ubuntu and Free BSD? The owners and founders of both have aimed to create a computing solution for consumers and businesses that ‘don’t suck’. For all of the goodness that Windows has brought the average consumer, it has created a lot of heartache in the process.

Here’s just a list of problems with Windows off the top of my head that troubles both business and regular consumers:

1. Windows Networking is not much easier for the core Windows audience than Linux Networking is to an amateur programmer / tech enthusiast. Think about that one for a minute, why the heck do average computer users require costly installations and fees for using stuff as trivial as the Internet and/or file sharing? In Silicon Valley, even, average families have to pay Best Buy or some other company a King’s ransom just to get rolling. This stuff should work out of the box!
2. Dreaded DLL errors: If I ever see another dreaded .dll error or missing files from bad installations again, it’ll be too soon. I’ve shifted through all flavors of windows, Ubuntu, Slackware, FreeBSD, Gentoo and back again and I can say without a doubt, windows always seems to generate stupid missing file errors. This brings me to the next problem…
3. Blue Screen of Death: Over 10 years after the introduction of the Blue Screen of death with Windows 95, I’m still seeing that stupid screen. I still get random hangs and hardware crashes, I continue to be disappointed by poor Windows design. For the record, I currently spend most of my time using an IBM X41 with Windows XP and Gentoo dual-booting. P.S. Gentoo never crashes!
4. Internet Explorer sucks, it is a major source of the 21st century Windows hate. Not only is the damn thing slow but it never seems to render pages quite right. As a frequent web surfer who has spent some time on the design side, I have to say that Internet Explore is a heaping pile of crap. It’s not fun to see web pages work on every browser using w3c compliant code while several hacks and fixes need to be implemented to cater to not ONE, but THREE different versions of Internet Explorer that suck! That’s right, IE5, 6, and 7 all render certain CSS elements differently! I’m not even to get into the garbage that came before that, but I don’t recall it being anywhere near as bad as it is now.
5. Hardware installation has never been Simple, despite plug and play “technology”. I’m pretty Tech savvy, especially as far as Lawyers are concerned. I’m educated, I’ve been using computers for about 17 years now and consider myself an amateur programmer. Experience and knowledge aside, the lack of Microsoft / PC standards and ease of use has created plenty of headaches for me especially when family, friends and even people in the work place need help. Guess what? It’s taken days and days out of my life because Microsoft can’t seem to get their shit together on the hardware department. Just yesterday, I spent an afternoon trying to get a network set up and printers working for a friend and I left without finishing the job due to lack of time. This is after he paid $80 to a techie to install his network, set up WEP, and get the printer network going.

This is just the tip of the iceberg, I could probably go on for days about my wasted time due to poor Windows design, but that might depress my readers and make them want to shoot themselves. Thanks, just another horrible thing that can be attributable to Microsoft!

Oh, by the way, BILL:

I understand the iMac commercials are taking a toll on Microsoft profits and sales, ever wonder what makes them so effective? Hint: It’s not ‘just’ the awesome PC guy, it’s the product, stupid. I know there is so much more I could write, but I’ll stop for now.

Feel free to add your own gripes in comments if there is anything that ticks you off about Microsoft and Windows that has been lingering and tearing you up inside. Thanks for letting me get that off my chest!