Have crimes been committed against Google in China? Forcing Google to improve its self-defense and be willing to fight

The official Google blog has a post titled “A new approach to China.”  And, after reading you could say Google has been a victim of a crime trying to steal intellectual property.  But what does Google do?

A new approach to China

1/12/2010 03:00:00 PM

Like many other well-known organizations, we face cyber attacks of varying degrees on a regular basis. In mid-December, we detected a highly sophisticated and targeted attack on our corporate infrastructure originating from China that resulted in the theft of intellectual property from Google. However, it soon became clear that what at first appeared to be solely a security incident--albeit a significant one--was something quite different.


First, this attack was not just on Google. As part of our investigation we have discovered that at least twenty other large companies from a wide range of businesses--including the Internet, finance, technology, media and chemical sectors--have been similarly targeted. We are currently in the process of notifying those companies, and we are also working with the relevant U.S. authorities.


Second, we have evidence to suggest that a primary goal of the attackers was accessing the Gmail accounts of Chinese human rights activists. Based on our investigation to date we believe their attack did not achieve that objective. Only two Gmail accounts appear to have been accessed, and that activity was limited to account information (such as the date the account was created) and subject line, rather than the content of emails themselves.


Third, as part of this investigation but independent of the attack on Google, we have discovered that the accounts of dozens of U.S.-, China- and Europe-based Gmail users who are advocates of human rights in China appear to have been routinely accessed by third parties. These accounts have not been accessed through any security breach at Google, but most likely via phishing scams or malware placed on the users' computers.

Google has taken action by improving its self – defense skills.

We have already used information gained from this attack to make infrastructure and architectural improvements that enhance security for Google and for our users. In terms of individual users, we would advise people to deploy reputable anti-virus and anti-spyware programs on their computers, to install patches for their operating systems and to update their web browsers.

And, they have taken the action of drawing international attention to the crime.

We have taken the unusual step of sharing information about these attacks with a broad audience not just because of the security and human rights implications of what we have unearthed, but also because this information goes to the heart of a much bigger global debate about freedom of speech.

Which is common with environmental groups who draw public attention.

Google’s blog has 619k subscribers.

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I would bet Google has chosen this issue as a battle to prove its motto “do no evil.”  And, Google probably knows it couldn’t fairly compete against Baidu.

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Impact of Google’s withdraw from China on GreenM3, China is #30 in traffic

There is tons of news out there on Google’s contemplating a withdraw from China.  There are over 2,500 news articles on the topic.  WSJ.com is just one example.

Google's Watershed Moment in China

By ANDREW PEAPLE

There's little doubt this is a watershed moment for Google. By publicly contemplating a withdrawal from China, the company is showing it values its reputation for providing a secure service to users more than a leading position in a massive and growing market.

But is pulling out the right decision?

Near-term, Google's internal agonizing will be soothed by the knowledge China remains a small part of its global business. Google's China operations will contribute just 1% of its 2010 profits, Citi Investment Research says.

Telegraph UK has a timeline article on the activity in China.  Look at the activities over the past year.

March 2009:

China blocks YouTube, which is owned by Google.

June 2009:

China blocks Google.com and Gmail briefly as it accuses Google of spreading obscenity over the internet.

September 2009:

Kaifu Lee resigns, amid rumours that pressure from the Chinese government had become intolerable. John Liu is appointed to replace him.

October 2009:

A group of Chinese authors accuse Google of violating their copyright by reproducing their work on its Google Books service.

December 2009:

Rumours suggest Google had heavily reduced its staff in China.

January 2010:

Google announces it will stop self-censoring and that it may pull out of the country after a series of cyber attacks.

My blog is my own little lab to get information on how things work.  Curious I went to Google Analytics to see where China fit in GreenM3 traffic position.  Spot #30.

1

United States

2

United Kingdom

3

India

4

Canada

5

France

6

Japan

7

Germany

8

Netherlands

9

Australia

10

Singapore

11

Spain

12

Taiwan

13

Denmark

14

Malaysia

15

Italy

16

Brazil

17

Philippines

18

Sweden

19

South Korea

20

Belgium

21

Hong Kong

22

Indonesia

23

Ireland

24

Poland

25

Russia

26

Thailand

27

Egypt

28

Switzerland

29

Vietnam

30

China

With results that low am I being censored?  I get no search hits from Baidu, China’s leading search engine.

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Google Electric Company is a popular concept, but most are missing energy storage as the strategy

I am having fun writing ideas on the GreenM3 blog.  There is so much going on now in the Green area and data centers, I can’t keep up with all the news. One of the latest news stories is Google filing with FERC for energy company status for Google Energy, creating a Google Electric company.

Google Energy

Energy

I’ve been watching the news to see if there is any particular insightful comments.  I wrote about the concept of Google Electric company in Nov 28, 2007.  Yes, 2 years ago.

Nov 28, 2007

Google Electric Company - Core Competency?

Larry Dignan on http://blogs.zdnet.com/BTL/?p=7149

Wrote a blog about the issue of Google getting into the energy business. This somehow seems like it is in Google's DNA when faced with make vs buy, they favor make.  They've done this with their OS and Servers they run their platform on.  Now, they are extending out to make their own electricity.

Google News does a good job of showing the various discussions.

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I have a few friends who work at Google and it easy to run thought experiments of what is not being discussed.

Thought experiments are devices of the imagination used to investigate the nature of things. We need only list a few of the well-known thought experiments to be reminded of their enormous influence and importance in the sciences: Newton's bucket, Maxwell's demon, Einstein's elevator, Heisenberg's gamma-ray microscope, Schrödinger's cat. The same can be said for their importance in philosophy. Much of ethics, philosophy of language, and philosophy of mind is based firmly on the results of thought experiments.

What I think Google has seen is energy storage from renewable energy sources – PV, Solar, and wind is essential.  I joked and questioned Google as an electric company 2 years ago, but a lot has happened in two years, and it makes sense from one point of view that Google' learn to store information as it stores information (indexing the web) and delivers higher value information when users need it.  To do this with electricity, Google needs to be able to buy and sell electricity.

As the largest consumer of data center electricity in the world, except for the US Fed Gov’t, Google is in a unique situation to use information to deliver higher value electricity. 

Also, Google Energy’s expertise as a power company will allow it to figure out how to lower its energy costs and carbon impact over the long run.  This is a not a new concept and has been used by industries like pulp and paper mills with their own power generation and water supplies.  Which fits in Google buying the pulp and paper mil in Finland.

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Missouri business leaders support development of data center tax incentives in the state

DataCenterKnowledge wrote on the Politics in data centers in NY, TX, and MO.

The Politics of Data Centers: NY, Texas, Missouri

January 6th, 2010 : Rich Miller

In recent years we’ve seen data centers become embroiled in state politics on topics such as whether to build new state data centers to manage citizens’ tax and benefit issues, where to put those data centers, who to hire to operate them, and whether to offer tax incentives to establish a state as a destination for development. This week we’ve data center make headlines in several states.

Missouri caught my attention as I have been there a few times meeting with business leaders.  Rich Miller goes on regarding Missouri.

Missouri: The state General Assembly in Missouri hopes to consider targeted tax incentives that will help the state attract more data center projects. Business groups, including the Missouri Coalition for Data Centers, hope to build upon a cluster of enterprise disaster recovery data centers in the Kansas City, and boost interest in the development of the state’s abundant supply of limestone caves as data center facilities. Missouri is home to several existing underground data bunkers, including The Mountain Complex near Branson and the Springnet Underground in Springfield.

The Missourinet article referenced by Rich has good points.

Business leaders put data center incentives on legislative wish list

by STEVE WALSH on JANUARY 3, 2010

in BUSINESS, TAXES

Among the many issues to be entertained during the 2010 session of the General Assembly, which begins on Wednesday at the State Capitol in Jefferson City, is one that would offer incentives in a bid to lure data centers to Missouri. The push for the legislation comes from what is known as the Missouri Coalition for Data Centers, which is made up of businesses and local economic development agencies.

The argument is to classify data centers as information factories.

“A data center, basically, is a warehouse for information storage,” said Tracy King, Director of Taxation and Fiscal Affairs with the Missouri Chamber of Commerce and Industry, a member of the Coalition. “You can kind of look at a data center as a manufacturer. Instead of manufacturing widgets data centers manufacture bits.”

Why is designation as a manufacturer important? The manufacturing industry can already take advantage of state-sponsored incentives.

“We’re offering those same exact incentives to the manufacturing industry right now,” said Ora Reynolds, President of Hunt Midwest Enterprises in Kansas City. “So, if you’re manufacturing widgets you get these incentives. If you’re manufacturing data you don’t. So, this is basically the same incentives that are already out there for an industry that’s been in the state for years and years and now we’re trying to bring a new industry in with similar incentives.”

Why do this, because the rest of the surrounding states do which is why they have attracted the big data center companies.

“Tax incentives at every one of our surrounding states are already in place,” said King. “For, let’s say a 100,000 square foot data center, they’re handicapped by about $15-million to do business in Missouri. So they’re not doing business in Missouri – they’re doing business in Nebraska, Iowa, Kansas, Oklahoma – who already have both tax exemptions in place and also some personal property tax exemptions or abatements.”

Besides the Tax Director and business leaders, there is support in the House and Senate.

Sponsors of data center incentives legislation have been found in both the House and Senate. Supporters acknowledge the proposal might face challenges during these tough budget times, but they insist that at the end of the day the state would benefit from such legislation.

You can bet soon after Missouri extends manufacturing status to data centers, there will be an increase in data center activity in Missouri.

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Are Washington State Taxes driving Data Center builders out of State?

DataCenterKnowledge has a post on Sabey’s partnership to expand out of the State of Washington.

Sabey Unveils Funding, Expansion Plans

January 8th, 2010 : Rich Miller

Rows of server racks inside the Sabey Corp. Intergate.Columbia data center complex in Wenatchee, Wash. 

Rows of server racks inside the Sabey Corp. Intergate.Columbia data center complex in Wenatchee, Wash.

Sabey Corporation has partnered with National Real Estate Advisors to form a new venture that will expand Sabey’s data center operations beyond its core market in the Pacific northwest, the companies said Thursday.

The new company, Sabey DataCenter Properties, will include Sabey’s existing data center developments. NREA will have a minority equity interest and will invest $100 million, which will be used to support the current portfolio and finance growth in new markets.

Where Sabey is going isn’t stated, but it’s not in the State of Washington.

Sabey is not identifying any of the markets where it may eventually operate data centers. But the company has forged a strong track record in building energy-efficient facilities, and its expansion comes at a time of growing interest in data centers built to the highest efficiency standards.

I’ve written on the past on the change in Washington State Sales Tax being applied to server equipment, and how Windows Azure servers were moved from Quincy, WA to San Antonio by Microsoft.

Aug 05, 2009

Washington State Sales Tax Drives Microsoft Windows Azure Servers to Texas

Mary-Jo Foley at ZDNnet picked up news on Microsoft’s decision to remove USA- Northwest from a deployment choice for Windows Azure.

Tax concerns to push Microsoft Azure cloud hosting out of Washington state

Posted by Mary Jo Foley @ 11:55 am

Microsoft is making preparations to move applications that developers are hosting on its Azure cloud infrastructure out of its Washington state datacenter, due to a change in the tax laws there.

Microsoft warned customers testing their apps on the Azure test release about the planned change earlier this week. Microsoft is readying a migration tool to help testers with the move, company officials said.

Cloud-computing and .Net expert Roger Jennings put together all the various reports and clues into a detailed August 5 post on his OakLeaf Systems blog.

One of the factors that is influencing the data center migration out of the state of Washington are the taxes.  But, with a 2.6 billion budget gap, don’t expect the state to change its taxation.

$2.6 billion gap in state budget prompts Dems to look at taxes

As the Legislature starts work to close a $2.6 billion budget gap, key lawmakers say tax increases may be inevitable. Top Democrats have indicated they'll suspend or modify Initiative 960, which requires a two-thirds legislative majority or voter approval for tax increases.

By Jim Brunner

Seattle Times staff reporter

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OLYMPIA — As the Legislature starts work today to close a $2.6 billion budget gap, key lawmakers say tax increases may be inevitable.

To clear the way, top Democrats have indicated they'll suspend or modify Initiative 960, which requires a two-thirds legislative majority or voter approval for tax increases.

But which taxes would be raised and who would pay them is far from clear.

Instead of a general tax increase — such as boosting the state sales tax — some top lawmakers are talking about more targeted approaches, such as extending the sales tax to candy, muffins and bottled water and increasing tobacco taxes.

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