July 19, 2007

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Editor’s note:
Security still an enigma for most CIOs

What's New
1. IBM: Anatomy of a corporate turnaround
2. Why CIO pay packages are increasing
3. Intel lowers chip prices, launches new chips

Technology Tool Box: IT Security
1. Un-integrated security can be dangerous
2. DNS attacks are draining corporate IT coffers

Expert Opinions

Management and Careers
1. Hiring talent in a tight market

Also Noted:
Internet service interrupted in New York; Free WiFi in London; Much more...

Among the challenges facing the modern CIO, convincing other executives to commit the same level of funding to security as to strategic, potentially money-making applications that directly advance organizational objectives is one of the most difficult. Still, as the stories in today's technology section illustrate, CIO's who don't integrate and deploy security strategies that pro-actively manage strategic risks do so at their peril. The main problem, as I see it, is that security is still seen by most organizations as an exercise in solid defense. The reason this approach is flawed, is that there are simply too many variables to account for--making security breaches all but inevitable. The InformationWeek article below illustrates a growing awareness among smart CIOs that security should not be viewed in a vacuum, but rather, should be integrated into the early stages of new business process design and application development. Similarly, NetworkWorld's coverage of the threats posed to Domain Name Systems, despite significant efforts and investments by corporate security professionals, illustrates the problems inherent in a defensive approach to security. The best defense, they say, is a strong offense. At any rate, I would be very interested to hear your thoughts on how CIOs can revise their approach to security, so if you have any ideas, please drop me a line. Enjoy the issue. -Patty  

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What’s New

1. IBM: Anatomy of a corporate turnaround

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During a conference call with financial analysts this week, IBM's CFO said that this quarter was one of IBM's strongest in years, raising the company's full-year outlook. However, it was just two short years ago that IBM was in trouble--performing well below expectations. This type of turnaround is impressive but how is it done? IBM has been providing corporate packages of research, software and services; it has hired aggressively in India and most importantly, the company was reorganized from a traditional multinational with country-by-country operations that worked in silos, into a seamless global enterprise organized by centers of expertise based on industries and technical skills. However, IBM still faces daunting long-term challenges, such as Indian insurgents in technology services business.  

For more on IBM's turnaround:
- see this CNET article on Big Blue

ALSO: IDG reports that the emerging nations of Brazil, China, India and Russia together represented five percent of IBM's second quarter revenue and it expects those numbers to double over the next four years. Article

2. Why CIO pay packages are increasing

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Along with new business responsibilities come a big increase in pay for CIOs, according to Baseline's ranking of high-paid information-technology executives. This year the list includes 39 millionaires, up from 21 last year. Many of those on the list manage other operations beyond technology, including logistics and customer service. For example Alltel's Jeff Fox, who made $9 million last year, is in charge of technology, but also is president of the company's shared services group. And, he's only 44--one of the youngest on the list. Looking for a piece of this million dollar action? A top-notch CIO needs to know more details about how each part of the company operates than his counterparts have to know about IT, according to John Stevenson, who has been CIO at Sharp Electronics and Avaya and is a former president of the Society for Information Management. "You need to have a dose of knowledge of every other executive position to be successful," he told Baseline. 

For more on CIO pay packages:
- see this Baseline article

3. Intel lowers chip prices, launches new chips

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Intel turned up the pressure on rival AMD this week, unveiling a faster quad-core desktop processor that's less expensive than that company's previous top-end chip. Intel introduced the Intel Core 2 Extreme QX6850 at $999--which is $200 less than the QX6800. It also introduced an Extreme brand of processor for notebooks, the X7800 mobile dual core with both cores running at 2.6Ghz. As you might recall, AMD recently announced price cuts for its highest end desktop processors as well. Intel says that OEMs will start shipping products with their new processors within two weeks.

To learn more about Intel's new products:
- see this press release
- and this DailyTechRag article

Technology Tool Box

1. Un-integrated security can be dangerous

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Perhaps the only thing that enterprises find more threatening than security vulnerabilities are the potential penalties for falling out of compliance. There is a consensus emerging that these two corporate pitfalls should not be viewed in a vacuum and that companies should integrate encryption, access control, and auditing functions.  According to Wikibon, a newly formed community of experts that offers free research and advisory services on storage issues, companies need to integrate compliance requirements with life cycle management. David Floyer, a former IDC analyst and one of the founders of Wikibon believes that encryption is one way to secure data when it comes to storage, but that's only part of the solution. It's not feasible to encrypt all of the data in a data center, since the volumes of data are typically too large and there are too many servers accessing data, among other factors. It does, however, make sense to encrypt data where there's a regulatory requirement, such as personal records. Encryption also makes sense when transporting data over a network or physically by tape.   

For more on the intersection between security and compliance:
- see this InformationWeek article

2. DNS attacks are draining corporate IT coffers

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Attacks on companies' Domain Name System (DNS) servers are causing CIOs to spend a considerable amount of time and money to deploy complex security measures to keep their sites protected from malicious attackers. And according to NetworkWorld, despite this investment, companies are still vulnerable. In a study of 465 IT and business professionals, more than half the respondents reported having fallen victim to some form of malware attack. Over a third were hit by a denial-of-service (DoS) attack, and more than 44 percent had experienced a pharming or cache-poisoning attack. External and internal DNS servers were equally vulnerable: Both types succumbed to attacks with roughly the same frequency, according to the study by Mazerov Research and Consulting. A DNS server compromised by a hacker could be used to funnel Web surfers to all sorts of phishing attacks and malicious Web sites, and in some cases could even cause havoc with directory services and email. 

For more on DNS attacks:
- check out this Network World article

Expert Opinions

Management and Careers

1. Hiring talent in a tight market

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It's getting tougher and tougher for CIOs to find good talent in today's tight job market. Forrester recently released a new report, "Recruiting IT Talent: Adjusting to a Hot Market," which spells out how to find sought after IT pros. The report offers some practice advice for CIOs: First off, stop searching for a silver bullet solution. There is none. "Competition for talent is scrappy and the most creative, tightly messaged, culturally aligned, people-focused IT organization will win in terms both of attracting talent and of retaining it over the long term," CIO Update reports. Secondly, CIOs must take charge of their recruiting future and not entrust their talent needs solely to HR and staffing firms. They must get involved with all levels of recruiting, from reaching out to college students to networking with peers. Also important is the idea that CIOs must look at things from a global perspective. "CIOs of multinational enterprise IT organizations need to think globally and act locally during workforce planning," the article points out. In a separate survey, Robert Half Technology reports that of 1,400 CIOs interviewed, 16 percent planned to hire IT professionals during the first quarter of 2007, while 2 percent planned to reduce the total headcount.

For more tips on hiring:
- see this CIO Update article

> Internet service interrupted in New York. Article

> Free WiFi in London. Article

> Oracle buys ID theft detection company. Press Release

> Tech employment is way up. Article

And Finally... A former spammer tells all. Article

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