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Google Inc.’s revenue climbed 14 per cent as the number of ads on the company’s search properties gained.

Sales, minus revenue passed to partners, rose to US$13.9 billion in the first quarter, the company said in a statement Thursday. That compared with analysts’ average projection for US$14 billion, according to estimates compiled by Bloomberg.

Google is stepping up investments to ensure that people continue to spend time using search, shopping and other Internet services. That in turn boosted the Web company’s advertising volume, which rose 13 per cent. Users are going straight to Facebook Inc., Amazon.com Inc. and other Web-based services as they spend more time on smartphones and tablets, and Google is making sure that its main search services continues to lure people and advertising dollars.

“Search continues to be a very valuable ad unit,” said Sameet Sinha, an analyst at B. Riley & Co. “Everybody likes search.”

Related

• Google Inc just launched Project Fi, a new low-cost wireless service in the U.S.
• Here comes ‘Mobile-geddon': Google Inc’s updated mobile search algorithm to have big impact on businesses’ web traffic

The shares of Mountain View, California-based Google rose in extended trading. The stock advanced 1.5 per cent to US$557.46 at the close in New York, leaving it up 5.1 per cent this year.

First-quarter net income was US$3.59 billion, compared with US$3.45 billion a year earlier.

Excluding some items, profit was US$6.57 a share, missing analysts’ average projection for US$6.63.

Google is stepping up investments in new businesses to drive growth. Earlier this week, it unveiled a new wireless service called Project Fi. Google also plans to offer a subscriber version of YouTube as soon as this year, letting viewers see clips without having to sit through ads.

The company also is trying to improve its search experience on smartphones. Earlier this week, Google updated its search service to favour websites that are tailored to mobile devices.

“They still own the search business,” said Martin Pyykkonen, an analyst at Rosenblatt Securities Inc. “But people are finding better ways — or at least alternative ways — to find the information that they want. That can be Twitter; that can be your friends on Facebook.”

Bloomberg News

It’s been a lively week in the security realm. Here’s a roundup of significant flaws in need of patching.

Microsoft releases critical security patches

This month’s Microsoft Patch saw the release of four patches rated Critical, and seven rated Important. According to the company’s advisory, the issues affect Windows, Internet Explorer, Microsoft Office, Microsoft SharePoint, and the .NET Framework. One of the Critical flaws, a vulnerability in Windows HTTP.sys, is already being exploited, according to SANS, who strongly advises that patch described in MS15-034 be applied as soon as possible.

Oracle patches multiple products

Oracle has released a Critical Patch Update containing 98 security fixes across product lines including the Oracle database, JD Edwards, Peoplesoft , Fusion Middleware, the E-Business Suite, Oracle Supply Chain, Siebel, its commerce platforms, Java, MySQL, and others. Some of the flaws are remotely exploitable without authentication. The Java patches include the last security updates for Java 7, which is going out of support, and user are urged to update to a supported version of Java if they haven’t already.

File sharing flaw in online storage allows access to private files

Collaboration vendor Intralinks has discovered that a flaw in services such as Dropbox and Box that it reported over a year ago, and that can expose private user information, has not been completely addressed. It said in its post, “In 2014, when using Google Analytics to review the results of some campaigns, we inadvertently discovered the fully clickable URLs necessary to access documents in some Dropbox and Box accounts. Subsequently, we found other issues with file sharing apps, and reported our concerns to the affected companies so they could take any necessary action.” However, it said that last month it again discovered accessible user information when analyzing a new campaign, including, in one case, a completed tax return revealing sufficient information to allow identity theft. Intralinks recommends that anyone sharing sensitive files using Dropbox subscribe to the business version of the product, which offers some safeguards that the free product does not.

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• Dropbox integrates with Office Online: News tech leaders need to know
• Toronto-based business intelligence company Datazen acquired by Microsoft Corp

Alert issued about Simda Botnet

The United States Department of Homeland Security, in collaboration with Interpol and the Federal Bureau of Investigation, has released a Technical Alert describing the Simda botnet, and offering ways to prevent infection and to remediate if affected. It noted that, “A system infected with Simda may allow cyber criminals to harvest user credentials, including banking information; install additional malware; or cause other malicious attacks. The breadth of infected systems allows Simda operators flexibility to load custom features tailored to individual targets.”

SearchBlox flaws revealed

Enterprise search and text analytics vendor SearchBlox has released an update to address a series of flaws in version 8.1 and below of its software that could allow attackers to execute arbitrary scripts, and access unauthorized data.

Blue Coat malware analysis appliance flaw

Security vendor Blue Coat says that all versions of its Malware Analysis Appliance prior to version 4.2.4 are vulnerable to a cross-site scripting flaw that could allow attackers to harvest user credentials. In its advisory, it says that there are no workarounds, and users should update to the latest software release as soon as possible.

HP network automation remote vulnerabilities

HP has issued a security advisory about multiple issues in its Network Automation product, including Cross Site Request Forgery (CSRF), Cross Site Scripting (XSS), clickjacking and other vulnerabilities which can be used to create remote exploits. CERT says that a remote, unauthenticated attacker may be able to trick an authenticated user into making an unintentional request to the web server that will be treated as an authentic request, leading to the possibility of privilege escalation, information leakage, code execution, or denial of service. HP recommends applying the patches detailed in its advisory as soon as possible.

Wind Mobile Corp. is beginning to look a lot like faltered upstart Public Mobile Inc.

The executive shuffle at Wind continues as the carrier’s new chief executive Alek Krstajic, who founded and led former rival Public Mobile until it was acquired by Telus Corp. in 2013, has brought aboard two senior members of his old team within his first month at the helm.

Wind named Bob Boron its chief regulatory officer, and Bruce Kirby its chief strategy officer and interim chief financial officer. The pair held similar positions at Public Mobile, where they worked with Krstajic.

Boron will replace Simon Lockie while Kirby takes over for Brice Scheschuk, who will both return their focus to Globalive Capital, a Toronto-based company that has invested in over 25 start-ups, 10 venture funds, 15 micro-cap public businesses and local real estate. Globalive, which is led by Wind’s founder and honourary chairman Anthony Lacavera, still maintains a stake in the fledgling carrier.

Related

• Wind Mobile Corp overhauls executive ranks, moves Lacavera to honourary chairman position
• Ottawa nixed SaskTel-Wind Mobile spectrum deal, sources say

Wind spokeswoman Amanda Gun-Munro confirmed the new hires, which were first reported by telecom industry site Cartt.ca, but declined to comment on when Boron and Kirby will assume their new roles, or when Lockie and Scheschuk will transition back to Globalive.

On March 23, Wind unveiled a major executive overhaul featuring Krstajic, a new chairman, two new directors and a new ambassadorial role as honourary chairman for Lacavera.

For the five-year-old upstart to solidify its position as Canada’s only viable fourth national wireless carrier, it will require long-term financing – a minimum of $300-million, per Lacavera – in the public and private markets to expand and repair the cellular network where Wind currently operates.

Checking your savings account balance will soon be as quick and easy as checking the time.

Canadian Imperial Bank of Commerce announced Thursday that it’ll be the first of Canada’s big five banks to make its mobile banking application available for clients to download on Apple Inc.’s Watch when the much-anticipated new gadget hits store and virtual shelves for purchase this Friday.

CIBC will join Bank of Nova Scotia subsidiary Tangerine, which revealed last month that its app will also be accessible to Apple Watch users, in the App Store. Clients from both banks will be able to perform functions such as viewing account balances and recent transactions.

Related

• Apple Inc wants to launch Apple Pay in Canada this fall, report says
• Canadian banks are offering Apple Pay in the U.S. — so why isn’t it on home soil yet?

These announcements showcase the many ways Canadian banks are willing and racing to satisfy people’s desire for convenience, or as CIBC put it in a release, giving “clients another option to bank when, where and how they want” — often through newer technologies.

In the release, CIBC boasts it was the first in Canada to bring to market a mobile banking app for iPhone and a mobile payment app, and the first among the big five banks to offer eDeposits. Tangerine had it second, behind Vancouver’s Westminster Savings.

Two German publishers have lost a court case that sought to brand popular ad blocker AdBlock Plus as illegal and anti-competitive.

Hello? Anyone there? Facebook unveiled a new voice-calling app for Android phones on Wednesday, the same day that its WhatsApp messaging service introduced voice-calling for iOS devices.

Phone calls, it seems, are not dead yet.

Called “Hello,” the stand-alone app is the seventh child of Facebook Creative Labs, the company’s arm tasked with creating new applications outside of Facebook. Others, such as the news-reading app Paper or the video sharing app Riff, have met with limited success.

Related

• Facebook Inc’s Sheryl Sandberg just said something that should terrify TV executives
• Facebook Inc sales disappoint as strong dollar hits advertising revenue

Hello’s aim is to give people more information about who is calling them. Because it’s connected to Facebook, Hello users can see information about their callers’ identity even if they don’t count them as a contact.

Users can also search for information about businesses within the app. Privacy settings match those on Facebook. If a number is shared only with one group, for example, it will be available only to that same group in the app.

Hello is currently available in the U.S., Brazil and Nigeria.

With a file from Bloomberg

We've done it again! For the fifth year running, we've won an award at the Security Blogger Awards which takes place at RSA.

From "joined up security" to the suggestion that Google proclaimed the end of malware on Android, find out what's happening at RSA 2015!

A Colorado man administered what we assume to be the highly unusual remedy of lead slugs in an alley behind his homeopathy store.

The proposed overhaul of the infamous Computer Fraud and Abuse Act would focus penalties on malicious computer crime.

Export Business Map gives geographic data of Canada’s top export markets

Coffee chain Costa's just sent out a warning about a possible data breach. Only 1 in 5000 accounts were affected, but the Coffee Club is offline for now. A bulk password reset will follow...

Tidal, the music service owned by rapper Jay Z, has not sparked the music streaming revolution its A-list artist backers hoped it would, with early ranking numbers for the app indicating it’s a colossal flop after the new music streaming platform dropped out of the top 700 U.S. App Store chart, and down to 56 on Apple Inc’s music chart.

Rival music streaming applications such as Pandora (exclusively available in the U.S) and Spotify Ltd., still occupy the top 10 area of the app chart, so it seems Tidal has also not managed to disrupt its competitors. Spotify sits at 38 in Canada and Tidal doesn’t seem to have registered at all on the Canadian App Store charts.

At a star-filled launch announcement last month, big name artists such as Kanye West, Nicki Minaj, Deadmau5, Daft Punk, Alicia Keys, Rihanna and Beyoncé showed up to support the app, which was billed as, “the first music streaming service that combines the best high fidelity sound quality, high-definition music videos and expertly curated editorial.”

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The general idea behind the platform appeared to provide artists, as well as other people involved in the recording process, a bigger cut of streaming revenue.

But giving multi-millionaires yet another way to make money, and not placing an emphasis on independent artists who have been more affected by the rise of music streaming than the average pop star, left many cynical about Tidal’s potential success. Many mocked the #TIDALforALL hashtag that trended on Twitter during the first few days of Tidal’s launch.

One of the biggest issues with Tidal for many potential customers is likely its price. Users can choose between paying a $10-a-month fee for digital audio-quality music, or $20 a month for CD-quality music. In the crowded music streaming space, competing services available in Canada such as Spotify, Rdio and Deezer, all offer some level of free service, something Jay Z’s Tidal doesn’t.

Even Dr. Dre’s U.S. exclusive Beats streaming music service, a relatively unknown app that was purchased by Apple last year for US$3 billion, has frequently cracked the top 20 iPhone revenue chart.

Related

• Spotify launches on PlayStation and announces free premium subscription for Fido customers
• Sony closing Music Unlimited, forges partnership with Spotify

Tidal’s CEO, Andy Chen, was recently fired in order to “streamline” the company, according to Business Insider, with new CEO Peter Tonstad, formerly Norway’s Minister of Environment, taking over the company. Twenty-five other employees have also been reportedly let go by the company.

The app has also been criticized by users who have dealt it a 2.5 star rating on the Apple Store. When Tidal was first announced it briefly jumped into the top 20 iPhone download chart in the United States.

EBay Inc. gave a quarterly profit forecast that topped estimates as the Web marketplace recovers from a security breach that forced users to change passwords and a Google Inc. search change that curbed traffic to the site.

Revenue for the second quarter will be $4.4 billion to $4.5 billion, the San Jose, California-based company said in a statement Wednesday. Profit before certain items will be 71 cents to 73 cents a share. Analysts on average projected sales of $4.57 billion and profit of 71 cents, according to data compiled by Bloomberg.

The recovery blunted concerns that EBay would lose some of its value once it separates from PayPal, the faster-growing payments division, under a planned split later this year. That could also make the marketplace business, which draws 155 million shoppers per quarter, more attractive as an acquisition. The split is on track to happen in the third quarter, the company said.

Related

• Ebay Inc cuts 2,400 jobs as it considers sale or IPO of enterprise unit
• PayPal to split from eBay, become its own publicly traded company in 2015

“The management team talked a lot last year about Google search changes and the security breach,” said Gil Luria, an analyst at Wedbush Securities Inc. “If those issues start going away, people will give the marketplace more weight and value it a little higher before the split.”

The shares of EBay rose as much as 4.7 percent in extended trading. The stock advanced less than 1 percent to $56.75 at the close in New York, leaving it up 1.1 percent this year.

First-quarter sales rose 4.4 percent to $4.45 billion, EBay said, falling short of the average analyst estimate of $4.42 billion.

Net income in the first quarter was $626 million, compared with a loss of $2.33 billion a year earlier. Excluding certain costs, profit in the latest period was 77 cents a share, compared with the average prediction for 70 cents.

EBay’s marketplace, an e-commerce pioneer, is facing intense competition from Amazon.com Inc. as well as brick-and- mortar retailers developing their own online businesses. Global e-commerce sales will hit $1.59 trillion this year, up 21 percent, according to EMarketer. EBay’s marketplace sales growth has lagged behind that pace so far this year, coming in at 7.3 percent in March, 5.1 percent in February and 6.8 percent in January, according to e-commerce consultant ChannelAdvisor Corp.

Bloomberg.com

Facebook Inc. missed analysts’ sales estimates in the first quarter, breaking a trend of far exceeding expectations and setting the company up for scrutiny of its increased spending.

Revenue rose 42 per cent to US$3.54 billion compared with the average analyst estimate of US$3.57 billion.

Facebook has been working to enhance the quality and reach of its advertisements, expanding its ad empire beyond its main application. The company has also improved its tools for tracking the ads based on identity and increased its focus on higher-impact video ads.

Related

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“It’s a real negative,” said Mark Mahaney, an analyst at RBC Capital Markets. “Facebook has been the single fastest, largest advertising platform on the Internet today, and there should be good reasons to wonder how long they can maintain that growth rate.”

Advertising makes up about 94 per cent of Facebook’s annual revenue.

Earnings excluding some items were 42 cents a share, compared with 35 cents in the same period last year. Analysts had expected 40 cents, according to an average of their estimates compiled by Bloomberg.

Facebook said its main application has 1.44 billion monthly active users, compared with 1.39 billion in the fourth quarter and analysts’ estimates of 1.43 billion.

Bloomberg.com

Customers will be allowed to pay only for the data they use

Google Inc. is set to unveil its planned U.S. mobile-phone service Wednesday, according to a person familiar with the matter.

Last month, the world’s largest Internet-search company said it was planning to offer a wireless service on a limited basis, without giving details on the timing. The person asked not to be identified because the because the plans haven’t yet been made public.

Selling its own mobile-phone service could enable Mountain View, California-based Google to add customers for its Android operating system, used by many different device makers, and make it easier to serve those users advertisements via smartphones and tablets.

The Wall Street Journal earlier reported the service could be introduced as soon as Wednesday.

NEW YORK • The site that sells everything from toilet paper to toys can now send you on a romantic getaway.

Amazon is expanding its travel service online, dubbed Amazon Destinations, the latest effort by the e-commerce site to bolster its service offerings.

The travel service offers deals on hotels and getaways in three metro areas, Los Angeles, New York and Seattle, and their surrounding regions.

Amazon has offered travel deals since 2012 but those were mainly flash deals with discounted rates. Now, hotels can offer rooms at published rates as well as deal packages and discounts. Some examples of hotels included are Suncadia Resort near Seattle, which has a golf course and hiking trails, or Two Bunch Palms, a hot springs spa resort in Los Angeles.

Related

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The travel service is part of Amazon’s local site which offers discounts on restaurants, entertainment, travel and other offerings from local businesses.

It pits Amazon against travel service sites like Expedia and TripAdvisor. Amazon has been broadening its online service offerings across the board.

Last month it launched Amazon Home Services, where businesses can sell to customers services like house cleaning and small renovation projects like TV wall mounting and garbage disposal installation.

The Seattle company is seeking to balance investments in new areas with turning a profit. Amazon.com Inc. reports first-quarter results on Thursday.

Shares rose US$4.89 to US$394.40 in afternoon trading.

The Associated Press

Twitter has introduced a new feature that could block abusive and threatening tweets before they are even seen by victims.

One of the best sources of information for finding out how a company is really running its business is its customers.

That’s what J.P. Morgan analyst Mark Murphy did to gauge how Microsoft Corp.’s commercial cloud business is doing and the outlook for the next 12 to 24 months.

Commercial cloud accounts for just six per cent of the company’s revenue, but it stands out due to a powerful growth trajectory of more than 100 per cent on about US$5 billion in revenue. Clearly, that segment will be critical in defining the next chapter for Microsoft.

Despite these impressive numbers, how is the company really doing?

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Murphy noted that its partners continue to see Microsoft gaining traction in the cloud, primarily due to its Office 365 productivity software and services for subscribers, which includes management of things such as e-mail and social networking. One partner went so far as to call Microsoft a “cloud powerhouse” in the making.

Others highlighted the substantial acceleration for the company’s Azure cloud computing platform and infrastructure, which is used to build and deploy applications and services through a global network of data centres managed by Microsoft.

Not all the comments were positive. Some partners believe Microsoft has altered its sales compensation for fiscal 2016 to bring it more in line with the cloud model. They suggested this could lead to a shakeup in the sales organization, both in the field and the channel.

One partner also highlighted the difficult decision associated with “lifting and shifting” a solution from a customer’s data centre to Azure, since it may force customers to rewrite all or part of the applications they want to move.

More broadly speaking, Murphy believes Microsoft chief executive Satya Nadella has vastly improved Microsoft’s image, with the help of his background in the cloud and enterprise. He’s also been friendlier to investors by speaking more openly about margin expansion and returning cash to shareholders, and demonstrating an ability to make tough organizational decision.

“While the PC cycle and Windows dynamic are still highly relevant, we believe Microsoft is pushing forward with a successful cloud strategy,” the analyst said.

Investors should expect further erosion in the company’s core Windows business as consumers continue to shift toward mobile devices. But Microsoft’s success in the Enterprise shouldn’t be overlooked, as it accounts for more than half of the company’s total revenue and is more profitable than the consumer business due to its strong market share in the OS, Office, cloud and database segments. Murphy also noted that Microsoft frequently tops the list of IT giants that will be most essential to the chief information officers he speaks to.

With its transition to the cloud having been “relatively seamless,” the analyst is confident Microsoft will dominate in the enterprise, and stands to benefit from a “broad and powerful” lineup of cloud solutions.