Sunday, 26 July 2015

7 places you’ll be surprised to learn are still using Windows XP

More than a year after Microsoft ended support for the aging OS, some high-profile organizations are still using Windows XP -- and putting themselves at risk.

7 places you’ll be surprised to learn are still using Windows XP
Microsoft announced in April 2014 that it would no longer support the 13-year-old Windows XP operating system. However, now, more than a year later, Kaspersky Labs and Net Applications both report that between 16-17 percent of computer users still use XP. You may think that it's mostly consumers, but the reality is that millions of business-critical systems are still running Windows XP, leaving them open to potential security issues. "When a company ends support, like Microsoft did, then vulnerabilities don't get fixed. If these vulnerabilities get public, [they] will be all over the Internet and easy to exploit. The problem with XP is that it was such a good, robust system that is still has quite a large user base," says Andrey Pozhogin, senior product marketing manager at Kaspersky Lab North America.

We were surprised to uncover some large organizations still relying on this retired technology. Here's a look at seven places you wouldn't expect to still be using Windows XP.

The U.S. Navy
According to a recently unclassified Navy document, Microsoft applications affect "critical command and control systems" on ships and land-based legacy systems, leaving them open to potential cybersecurity risks. But they aren't standing idly by as they work to rid themselves of these legacy systems.

According to an IDG News Service report, the U.S. Navy just entered into a $9.1 million contract that would keep the XP security patches and updates coming until 2017. Over the entire length of the contract, the total will near $31 million.

"Without this continued support, vulnerabilities to these systems will be discovered, with no patches to protect the systems," the Navy document says. "The resulting deterioration will make the U.S. Navy more susceptible to intrusion ... and could lead to loss of data integrity, network performance and the inability to meet mission readiness of critical networks."

The Navy is also paying for continued support for Microsoft's Office 2003, Exchange 2003 and Server 2003. The Navy has been transitioning away from the obsolete systems but at the time of this report it has more than 100,000 workstations running Windows XP and other aging systems.

The U.S. Army
The Navy isn't the only branch of the military struggling with outdated technology. The Army purchased a Microsoft Custom Support Agreement (CSA) for Windows XP last year. Like the Navy, the Army doesn't want to give specifics on which systems are affected but the document states the following: "This procurement will ensure the Army has continued extended support to avoid security vulnerabilities on the existing licenses. The security updates for vulnerabilities rated 'critical' will be provided at no additional charge, but per hotfix, fees apply for security hotfixes rated 'important.' Non-security hotfixes are not available."

This would seem to indicate that, like the Navy, some of these systems are mission critical.

Crown Commercial Service
The Crown Commercial Service, Great Britain's government agency in charge of the improvement of commercial ties and procurement activities, has paid for XP extended support until 2015, but in May decided to end the contract, leaving thousands of computers at risk to attack from "low-level hackers," according to a recent article from The Guardian. Government officials said the departments in question had known for seven years that this day was coming and they would need to migrate away from Windows XP. "We expect most remaining government devices using Windows XP will be able to mitigate any risks, using the CESG guidance. Where this is not possible, they may need to review their own short term transition support," says Britain's Government Digital Service tech blog.

The National Health Service
Another quick stop in Great Britain brings us to their National Health Service, an organization responsible for a publicly funded healthcare system -- an enormous government agency. Last October, it reported that, "35 percent of NHS Trusts are still running Windows XP seven months after it reached end of life." In fact, 14 percent of those NHS Trusts were so reliant that they were unable to set a date for transition. With the recent high-profile hacking cases, the NHS seems like it could be a privacy disaster waiting to happen.

In 2008, the NHS had implemented a plan to update systems across the entire organization to address these issues but abandoned the endeavor after pouring 12 billion pounds into the plan.
Atms still using Windows XP

ATMs around the globe
Last October, a whopping 95 percent of ATMs were still using Windows XP and hackers where exploiting this to drain ATM machines. In 2014, Kaspersky Lab's Global Research and Analysis Team was hired as forensic investigators to find out how thieves were tapping ATM machines in Eastern Europe.

"During the course of this investigation, we discovered a piece of malware that allowed attackers to empty the ATM cash cassettes via direct manipulation. At the time of the investigation, the malware (Backdoor.MSIL.Tyupkin) was active on more than 50 ATMs at banking institutions in Eastern Europe. Based on submissions to VirusTotal, we believe that the malware has spread to several other countries, including the U.S., India and China," the Kasperky's team reported.

As recent as May, incidents continue to be reported in both Eastern and Western Europe. In the most recent one, thieves made away with 1.23 million pounds. The European ATM Security Team (EAST), the arm responsible for oversight of trends in ATM fraud said, "As a significant number of Europe's ATMs continue to use the Windows XP operating system, there are concerns that many remain vulnerable to ATM malware if the necessary preventative measures are not taken."

Water utility companies using XP
Last year, Forbes reported that an alarming 75 percent of life-sustaining water utility companies were still operating using Windows XP. Numbers like that make this area vulnerable to cyber attacks. According to Matt Wells, general manager for automation software at GE Intelligent platforms, the utilities industry is slow to adopt new technologies but with the ending of XP support, cloud computing will help these outfits transition to newer technology.

The U.S. electrical energy industry
In a recent Forbes article by Michael Assante, the former vice president and CSO for the North American Electric Reliability Corp. and former CSO for American Electric Power Company Inc, Windows XP is still being used on workstations in a majority of the electric and gas utilities in the U.S.

The energy industry reported last August that they were worried, too. In fact, cybersecurity has moved onto the list of the top five concerns for U.S. electric utilities, according to data from a recent U.S. News and World Report article, which revealed that "…if only nine of the country's 55,000 electrical substations were to go down -- whether from mechanical issues or malicious attack -- the nation would be plunged into a coast-to-coast blackout." Federal regulators have stepped in adding cybersecurity standards for the electric industry. Cybersecurity, according to the report, has "surged in the ranking of the Top 10 industry issues … leapfrogging two spots to number four."

Just for laughs

While not an XP issue, this Gizmodo article reports that in 1985, the Grand Rapids School District put into service a Commodore Amiga, programmed by a local student, to control heating and cooling services throughout its 19 public schools. Well, 30 years later, the Amiga is still faithfully performing its duties, although not without its share of repairs and replacement parts over the years. The best part is that the same student who originally programmed the system still lives locally and makes himself available to administer and repair any hiccups along the way. "The kid who programmed the machine is the only one who knows how to fix them," Gizmodo reports.


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Saturday, 11 July 2015

PC makers tighten inventories, remain edgy about Windows 10

Even as PC business contracts for 14th straight quarter, Mac sales surge 16%

Skittish about the impact of Windows 10, including the free upgrade-from-Windows-7-and-8.1 offer, computer makers drew down inventories and sent PC shipments plummeting in the June quarter, IDC said today.

The quarter was among the worst ever for personal computers, according to the research firm, which estimated the year-over-year contraction at 11.8%. That decline was bested only twice before in the two decades that IDC has tracked shipments: in early 2013, when the January quarter was off 13% and the September quarter of 2001, which posted a decline of 12%.

OEMs (original equipment manufacturers) shipped approximately 66 million systems in the three months that ended June 30, IDC said, down from the 75 million during the same stretch in 2014.

The dramatic downturn was due to several factors, said IDC analyst Loren Loverde, who runs IDC's PC forecast team, including a tough comparative from last year as enterprises scrambled to replace obsolete Windows XP machines. The 2001 operating system was retired by Microsoft in April 2014.

But Windows 10 also played a part, Loverde contended. "We've heard from various parties, including ODMs [original device manufacturers], component makers and distributors, that they've reduced inventory as Windows 10 approached," he said.

Although the industry is more bullish about Windows 10 than its predecessor, Windows 8, that's not been reflected in larger shipments simply because OEMs aren't sure how the new OS will play out in the coming quarter or two. To safeguard against overstocking the channel, and to some extent preparing for the launch of Windows 10, OEMs played it conservative and tightened inventories by building fewer PCs.

"Although it's very difficult to quantify, I'd say that this inventory reduction is a little bit more dramatic than before Windows 8," said Loverde.

Three years ago, inventories surged as PC makers cranked out devices -- 85 million in the second quarter of 2012, 88 million in the third -- figuring that Windows 8 was going to be a big hit and juice sales. That didn't happen.

"There were a lot of [retail and distribution] customers buying additional inventory and promoting Windows 8," Loverde said. "The [negative] impact on inventory is more substantial this time, and everyone is taking a wait-and-see approach, thinking that they'll make decisions in the second half of the year."

Some of the nervousness on the part of computer makers revolves around the upgrade offer Microsoft will extend to all consumers and many businesses with existing PCs running Windows 7 or Windows 8.1. Starting July 29, Microsoft will give those customers a free upgrade to Windows 10. The deal will expire a year later, on July 29, 2016.

Because Microsoft has never before offered a free upgrade of this magnitude, it's uncharted territory for Windows OEMs. A host of unknowns, ranging from whether the free upgrade will keep significant numbers on old hardware to the eventual reaction to the new OS, have made computer makers edgy about committing to fully packing the channel.

"It's even riskier when the market is declining," Loverde said of carrying large inventories.

And the PC business has been in decline, and will continue to contract.

IDC has held to its prediction that for 2015, global PC shipments will be down 6.2% from last year's 308 million, or to around 289 million. (That may change to an even more depressing number; Loverde said IDC had not yet adjusted the figure to account for the worse-than-expected second quarter.) In 2016, the industry will shrink by another 2%.

The brightest spot in the quarter's forecast was again Apple, which IDC had in the OEM fourth spot with shipments of 5.1 million Macs, a year-over-year jump of 16%. Other manufacturers in the top five -- Lenovo, HP, Dell and Acer -- were pegged with declines of 8%, 10%, 9% and 27%, respectively.

"Apple's a pretty unique company," said Loverde. "They've cultivated their market position and product portfolio, and, of course, their positioning is towards more affluent buyers who are not as price sensitive."

Loverde was convinced that some of the Mac's strong sales in the June quarter benefited from uncertainties about Windows 10 on the part of consumers.

Unclear, said Loverde, is how the Mac will fare if, as IDC and others believe, Apple introduces a larger iPad later this year, a tablet better geared to the productivity chores typically handled by personal computers.

"I think there will be some impact on Mac shipments, but Apple is always willing to cannibalize its own products," he said. "But the upside on tablets [generated by a larger iPad] and as a brand is bigger than the risk."
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