Danita Blackwood

The $700 Billion Solution & the Small Business Credit Crunch

2008-09-24T00:23:00Z

The current state of the U.S. economy, financial market turmoil, and a possible $700 billion solution dominates business news. Wall Street is getting a lot of attention, but things are tough on Main Street too as small firms all across the nation face a different kind of credit crunch. Small firms generate seventy-five percent of the nation's net new jobs and currently small businesses are generating job growth for the nation while large companies cut jobs. Entrepreneurs and small business owners can expect no national bail-out; but their needs must not be ignored during the focus on Wall Street's woes.

As a journalist with a small business media company, I know the importance of a good relationship with a bank, the ability to open a line of credit, and the importance of business credit cards. SBTV.com and our CEO Susan Wilson Solovic are in constant contact with small business owners. I have worked on many stories about the tightening of credit and the possible impact on small enterprises and their ability to expand. Many small business start-ups are forced to turn to credit cards as a source of capital. I have included links to some of the streaming video segments and interviews I have produced on credit, business credit cards and some of the changes and challenges placing more small business owners in a credit crunch.

This week the House of Representatives approved a bill entitled the Credit Cardholders' Bill of Rights Act (H.R. 5244), 312-112 to ease the small business credit crunch. This bill offers business owners options with the credit card companies and should help facilitate a quick economy recovery across the nation. But lawmakers in the Senate must approve the companion legislation to help small business survive these tough economic times. This might be a good time to place a call or send an e-mail to your Senator and let them know what you think.

As Washington works toward a $700 billion financial bailout plan for some of the nation's largest companies, it is certain all Americans will pay for the crisis on Wall Street. Small business owners are the backbone of the nation's economy and cannot be ignored on Capital Hill. Small business owners are accustomed to taking risks but they should not be forced to do it without a business basic like credit.

SBTV.com, Danita Blackwood, Susan Wilson Solovic, $700 billion solution, small business information, Washington, Capital Hill, Wall Street, credit crunch, credit cards; tough economic times, Congress, capital, business credit cards, Senate, Credit Cardholders' Bill of Rights Act,

A $700 Billion Bailout, Cyber-Attacks, and the Bottom Line: What You Can Do

2008-09-23T17:08:00Z

The current state of the U.S. economy, financial market turmoil, and a possible $700 billion solution dominates business news. These are issues impacting every American and every enterprise no matter the size or industry. The importance of the Internet to commerce, communication and the nation's defense is also a vital issue to individuals, enterprises and organizations across the nation. This important business lifeline is now under constant attack and the cyber-crooks are using home-based machines for their dirty-work!

National policymakers and cyber security experts are working to develop a plan allowing the government to effectively monitor private computer networks for cyber attacks, without infringing on the privacy rights of business owners and consumers whose data flows through these networks. A White House cyber security analyst estimates business losses due to cyber attacks tops two hundred billion dollars a year! In fact, one military contractor recently spent up to fifteen billion dollars to repair the damage caused by one cyber attack.

Small firms cannot count on escaping cyber-crooks because they are small and hope to fly under the radar. One new report indicates small networks and even individual personal computers play a big part in crippling cyber attacks. Researchers from SecureWorks found cyber criminals often use vulnerable personal computers or small networks as bots to launch cyber attacks!

Think these online crooks are a million miles away? Think again! In fact, in the SecureWorks report, the United States tops the list for cyber attacks with more than twenty and a half million attempted cyber crimes originating from U-S computers. China is ranked second with 7.7 million attempted attacks emanating from computers within its borders. Brazil is ranked third, followed by South Korea, Poland, Japan and Russia. These findings illustrate the ineffectiveness of simply blocking incoming communications from foreign IP addresses as a way to defend your organization from cyber attacks, as many hackers hijack computers outside their borders to attack their victims.

So what can individuals, small firms and community leaders do? Make sure your computers are protected. There is an important cyber-security summit scheduled for next month. The 2008 GTISC Security Summit on Emerging Cyber Security Threats is aimed at helping understand threats to digital information and develop strategies for securing it. The October 15, 2008 meeting hosted by Georgia Tech's Information Security Center will bring together thought leaders in the information technology and security fields to explore key cyber security threats and ways for countering them. This is the sixth security summit hosted at Georgia Tech since 2004.

Lt. Gen. Robert J. "Bob" Elder is among the speakers for next month's summit. Elder is Commander, 8th Air Force, Barksdale Air Force Base, La., and Joint Functional Component Commander for Global Strike and Integration, U.S. Strategic Command, Offutt AFB, Neb. He also commands the Air Force service component headquarters for cyberspace, global strike and network operations, and Strategic Command's bomber and reconnaissance Task Force 204. The "Mighty Eighth" provides long-range global strike, cyber warfare, information operations, intelligence, surveillance, and reconnaissance, battle management, and expeditionary construction capabilities to theater combatant commanders. Eighth Air Force is also responsible for operation and security of the Air Force computer enterprise network.

Organizers say the summit is not a product focused meeting. Instead, more than 250 attendees from academia, government and industry gather to discuss emerging cyber threats and explore potential solutions. You can learn more about attending by clicking here.

As Economy Slows and Unemployment Grows Work-at-Home Scams Escalate Online

2008-09-22T15:05:00Z

Traditionally as the unemployment rate rises, more people consider launching a business or working from home. Scam artists often target people wanting the flexibility of a home based enterprise with fraudulent offers. But a warning is going out about a new online scam targeting the unemployed. CareerBuilder.com, a reputable job search and employment firm, has joined the list of brands targeted by a criminal according to computer forensic experts. A crook or ring of criminals is stealing login credentials to the well-known job site by claiming to have a new Digital Certificate said to protect customers The CareerBuilder.com malware was especially interesting, said Gary Warner, Director of Research in Computer Forensics at the University of Alabama in Birmingham. “We've seen a long list of banks abused by this malware promising better security with Digital Certificates, but this is the first employment company targeted for this criminal’s scam,” Warner said. “By stealing CareerBuilder credentials the criminals will be able to make more believable job offers, and will be able to know who is actively seeking a job. They already have login credentials for banking sites, but they need to recruit more ‘Money Mules,’ which is what investigators call the victims who are tricked into sending the money out of the country.Warner’s investigations have revealed that the same criminals stealing these CareerBuilder accounts are attempting to convince desperate job seekers to work as financial assistants. In fact, these financial assistants receive a commission for receiving stolen funds into their personal bank accounts and then transferring the funds to the criminals via Western Union or Money Gram.Warner calls that “a sign that money laundering may be part of their new job.”Warner and his team of researchers have been tracking this malware family since May. The current campaign also links to work-at-home scams being hosted on the same IP addresses as the CareerBuilder malware.

The Financial Landscape & Big Names Change- Small Firms Offer Opportunity & Innovation

2008-09-19T16:35:00Z

As a journalist dealing with small business on a daily basis, I see the innovation and growth underway at some of the nation's smallest firms. The job picture is grim in many parts of the nation. American small firms continue to hire; albeit at a slower pace. Most small businesses are not experiencing the challenges of some of the nation's best know corporations. The recent collapse of three major financial institutions-Bear Stearns, Lehman Brothers, and Merrill Lynch-has left Wall Street reeling. While investors are concerned about the financial landscape, small firms offer opportunities for growth and innovation.

Are you skeptical about the impact of small firms? Consider Small businesses are the greatest source of new employment in inner cities, comprising more than 99 percent of establishments and 80 percent of total employment. In fact, small firms represent 99.7 percent of all employers. Go to your bathroom medicine cabinet: about half of all the most popular prescription drugs you will find there were initially discovered by small biotech companies.

One business author agrees small firms are a great place for investors to look for new opportunities: "Now might be the time to explore companies that seem a little off the beaten path, innovative outfits in the small- and micro-cap spaces," says Dian Griesel, author of the forthcoming Uncapped, and founder and CEO of the Investor Relations Group. "Even when times are rough on Wall Street, America never stops innovating or investing in our future."

Griesel sees biotech as a growing area and untapped opportunity: "Many tech and biotech companies in the micro-cap space are great examples of where the real cutting-edge research and development is occurring. In all likelihood, the micro-cap space is where we will see the emergence of things like oral insulin, cancer vaccines, and the next wave of nanotechnology. These companies act like a crystal ball for the future, and the well-positioned investor has the opportunity to reap windfalls," added Griesel.

Griesel is also the author of Capitalization Success, The 101 Platinum-plus Rules of Media Engagement, and the forthcoming Uncapped.

On this September 11th Think About How You Can Shape Our Future

2008-09-11T15:07:00Z

Entrepreneurs are innovators who generate one new idea after another. And I believe small business owners for the most part, are people who work to make the most of every moment, every opportunity, and get the most out of every resource. This may seem to be a strange way to start a blog focused on September 11^th. But as I look around, so many challenges and opportunities face this nation; it is my belief more citizens need to act like the small business owner---working to make the most out of everything we can to help our nation. I believe what we do as individuals is as important as what our elected officials do. It is my hope we can shape history and our future; and not the other way around.

Whether you are the business owner or a member of a small business staff, we all seem to constantly be on the move. However, it takes something big to move us emotionally. I hope today on September 11^th, you have a moment to take a break from your busy day and reflect on the Americans silenced forever on 9-11 and the others who have fought and won battles on fields of war and here at home.

The United States is known as the land of opportunity. As you think about the direction you want to take to claim your part of the opportunity ahead, also think about the direction you think this nation should take. So much is changing in our lives and in our world, help ensure the important things about this nation do not.

Word of Mouth Advertising is Flying High

2008-09-11T00:10:00Z

You may think word of mouth advertising had gone the way of the typewriter with the computer and search engine age. But one business is flying high putting online buying to work to create a buzz!

Discount airline,JetBlue,has travelers searching for online bargins buzzing because the carrier is auctioning off hundreds of flights and vacation packages this week on eBay. The flights are to more than twenty destinations and the vacation packages include some surprise destinations.

The opening bids on the JetBlue eBay auctions start at between a nickle and dime. The three, five and seven day auctions have travelers talking and e-mailing about the bargains! Flights leave on Thursdays or Fridays and return on Sundays or Mondays. All travel must be completed by October 6. If you want to check out the auctions head to www.jetblue.com/ebay.

The Women's Entrepreneurship Community Observes Some Important Accomplishments

2008-09-10T17:31:00Z

The nation's largest bipartisan women's business group, Women Impacting Public Policy, WIPP, just wrapped up an important meeting in Washington D.C. It is also where my boss, an outstanding small business leader, Susan Wilson Solovic picked up an award on behalf of SBTV.com, the AT&T Innovator Award.

WIPP also presented the Economic Blueprint: The Women Business Owners Platform for Growth at a public roundtable hosted by the Senate Committee on Small Business and Entrepreneurship. The Economic Blueprint was created by 30 women's business organizations as a call to action for Congress and the next administration. It outlines six critical public policy areas that affect the expansion of women-owned businesses: healthcare, access to capital, energy, procurement, taxes and telecommunications

Later today, our nation's capital will be the setting for a celebration of the 20th anniversary of the Women's Business Ownership Act of 1988 (H.R. 5050). This landmark legislation was the first comprehensive small business legislation aimed to help women entrepreneurs succeed. In spite of the ongoing challenges faced by women entrepreneurs 20 years since its passage, women have pushed forward with tremendous strength and determination.

Sponsors of the original legislation, including Former Congressman John LaFalce and Former Congresswoman Lindy Boggs, are scheduled to participate in today's event, along with the "founding mothers" of the women's business ownership community, current congressional advocates, and leaders of women's business organizations.

It is wonderful as women entrepreneurs to share a common vision and achieve our full potential as we contribute to our communities and families through building our businesses. This is a day to toast the founding mothers of the women's entrepreneurship community and look ahead to the challenges we can overcome with determination and resolve.

When everything goes wrong, remember Bernie Marcus

2008-08-29T23:10:00Z

As a journalist I like to think I can spot a story. Not just a news headline or a tease attention getter, but a story that pulls the reader or viewer in. A story has a clear and hopefully universal connection engaging the intended audience.

Not all stories are news. This blog is more on the story side of things. It is my sincere hope sharing this tiny little story will reveal some basic truths about the way the world works. It is my sincere belief there is a thread connecting experiences. It may take some time to notice and we are often too busy to see it, but I believe it happens more than we know.

While most of my siblings and playmates in the neighborhood would play dolls, I would pretend to be a weather girl as a child. Back in the day, before I started school, most journalists were men. The women on the local network affiliates were doing the weather. So, I pretended to be a weather girl using the straightest stick I could find. If my younger brother and sister didn't listen as intently as I thought they should, there might be a well-placed whack in their future from the handy weather pointer. After a few whacks, I no longer had a pretend audience for my weather forecasts. I was undeterred; I used a shorter stick for a pretend microphone and would interview my dolls. They didn't talk back and try to leave in the middle of a pretend broadcast.

The fall of 1964 interrupted my burgeoning broadcasting career because the stick had to be put away as I would start school. I hit the books but never forgot my dreams of reporting and being a part of the small screen. I took part in theatre, volunteered to read to the blind over the radio, did anything I could to prepare myself for becoming a story-teller on the tube. I had abandoned the early hope of a career in meteorology because by the time I reached high-school the "weather girls" had morphed into serious meteorologists. The study of meteorology requires solid math skills and third grade was the last grade I did not fear arithmetic.

I had the opportunity to be the announcing voice at the first "garden show" in my community when I was a junior in high school. I jumped at the opportunity. It was only two or three nights, but I would travel into the city and be announcing in the biggest civic center in my home state! This announcing job at the garden show introduced me to the world of home improvement. I began working at a now-defunct store named "Handy Dan"; a job I would work during high school and college until I landed my first reporting position at a small television station in 1980. I worked almost full-time at "Handy Dan" while going to school full-time so I learned a lot in the classroom and on the aisles of the store.

I've been thinking about those "Handy Dan" days a lot this week. A philanthropist and legendary entrepreneur came up in an editorial meeting at my office this week. The business owner who was listed among the top charitable donors in the nation for his $200 million donation to the Georgia Aquarium is making small business news. So why would Bernie Marcus remind me of my high school and college days at Handy Dan? You see, the retailer isn't best known as one of the first home improvement chains. It has another distinction. Marcus and I were both employees of Handy Dan. The defunct retailer is best known in the business world for firing Marcus. The day after Handy Dan gave him a pink slip, Marcus put a plan into motion that led to the founding of "The Home Depot."

So on days when it seems like nothing is going right on your job, remember Bernie Marcus. If I get the opportunity to interview him, I hope he will remember me. I can still recall some of my memorized announcements; "Good evening Handy Dan shoppers, the time is now 8:50 and all departments of your Handy Dan store will be closing in ten minutes. We'd like to take this opportunity to thank you for shopping with us, and hope you will visit again soon. Handy Dan will re-open......"

A Business & Technology Pioneer Has a Warning About a Different Ecosystem!

2008-08-28T05:01:00Z

Later tonight Former Vice President Al Gore is scheduled to speak to Democratic Party faithful. It has been eight years since Gore lost one of this nation's closest elections for the White House. But he has emerged as the most recognized unsuccessful U.S. presidential nominees in history. Gore's efforts to protect the environment in a method that strengthens the economy were the basis of a best-selling book and then an award-winning documentary. Last year, An Inconvenient Truth, won two Academy Awards!

I've been writing a lot and reading even more about how going green and become environmentally friendly can be a money-saver and good will creator for small firms. But another kind of environmental concern has gotten my attention: a warning about the nation's innovation ecosystem.

While there are a lot of jabs about Gore and the invention of the Internet, an early Web innovator is sounding an alarm about the health of the environment for innovation in the United States. Judy Estrin has written a book based on an extensive tech innovation background. Estrin co-founded Bridge Communications in 1981 which merged into 3Com five years later. In 1988 Estrin was involved in start-up Network Computing Devices and became its CEO in 1993. Estrin's third start-up, Precept Software, was launched in 1995 and acquired three years later by Cisco. She went on to help launch other firms and also serves on FedEx and Walt Disney; but she is a new author too!

In her new book, "Closing the Innovation Gap", Estrin says innovation is crucial to social, economic and cultural development. Estrin interviewed over 150 technology innovators as part of the research for the book and concludes a short-term outlook and a reliance on quick fixes and fast profits have diluted the curiosity and patience that sustain true innovation and create the potential for future economic growth.

Estrin calls not only on business leaders, but government and non-profit movers and shakers to save the innovation ecosystem of the nation. Her suggestion for reform is to focus on four challenges - creating energy or reducing its use; understanding climate change; improving health care; and improving personal and national security. To learn more about Estrin and her ideas for reigniting the spark of innovation and creativity, click here.

Small Business Owners Economic Outlook More Positive in New National Survey

2008-08-26T05:07:00Z

A new national random survey of a thousand small business owners reveals entrepreneurs' economic confidence rose for the second straight month in August, 2008! The survey conducted by Rasmussen Reports, LLC for Discover Business Card indicates the small business concerns about the overall state of the economy continue to improve. The Discover^® Small Business Watch^SM reached 86.9 in August, up 2.3 points from July and more than 15 points higher than June.

"We saw an increase in their confidence in the direction of the overall economy, but that was offset by more owners saying they're having cash flow issues," said Ryan Scully, director of Discover's business credit card. "Their perceptions of the conditions for their own businesses were flat, making this gain harder to pin down. There is still a great amount of caution out there."

The number of owners who think the economy is getting worse dropped to 60 percent from 71 percent in July. In addition, 23 percent of small business owners feel the U.S. economy is getting better, which is the highest rating since August 2007.

51 percent rate the economy as poor, a decrease from 54 percent in July; while 15 percent ranked it as good, up from 11 percent in July.

42 percent say they have experienced cash flow issues over the last 90 days, a significant increase from 33 percent in July 2008.

Perceptions of their own circumstances remained flat this month: 30 percent of owners say economic conditions for their business are getting better, up slightly from 28 percent in July, while 44 percent say conditions are getting worse, up just a point from 43 percent in July.

On the issues, healthcare remains a growing concern. Three out of four small business owners, 72 percent, do not offer health care to their employees. And it is apparently getting harder to find: 70 percent of owners say that finding affordable healthcare for themselves and their employees is very or somewhat difficult, up from 69 percent in January 2008 and 67 percent in January 2007.

A Lesson for All Ages: Enterprising Student Learns on Several Fronts

2008-08-25T05:05:00Z

When Michael Showalter's folks asked for a little help from the teenager with the money he would need for college; they had in mind an after-school job at a local business or maybe helping out neighbors with odd jobs. But instead of working for someone, Michael started a small business, Giuseppe's Italian Ice, which quickly turned a profit. The teen was hooked and used his business' success story to win the McKelvey Foundation's $40,000 college scholarship, awarded to student entrepreneurs. Now the recent high school graduate will use the scholarship money to continue his education at the University of Michigan.

The teen's enterprise, Giuseppe's Italian Ice, operates out of pop-up tents, dishing up traditional Italian Ice to tired, thirsty fairgoers at festivals and outdoor events across the Midwest. Showalter buys the product from Little Jimmy's Italian Ice in New Jersey, where it's manufactured according to a century-old family recipe.

"It's healthier than most desserts, especially stuff that you find at a festival -- it doesn't have high-fructose corn syrup," said Showalter. "Popular flavors are lemon, blue raspberry, watermelon and cherry."

His enterprise, named after his father, began a year ago with an initial investment of $14,000. Showalter recouped those startup costs handily, and now Giuseppe's has eight employees, friends of Showalter's. Operating expenses included buying two tents -- Showalter has invested another $20,000 to expand his market, and next year, Giuseppe's Italian Ice will be sold in both Ohio and Michigan.

According to Dennis Moore vice president of Little Jimmy's, Showalter demonstrated true entrepreneurial grit, planning and executing a business that could have taken a lifetime to build, in just a matter of months

As tuitions rise and the economy slows, enterprising students can benefit from the trend toward giving among successful entrepreneurs who are feeling philanthropic as retirement approaches. Colleges offering entrepreneurship majors fund scholarships as well. Showalter graduated from high school this year, and hasn't chosen a major yet at the University of Michigan. However, he is sure he'll continue selling Giuseppe's Italian Ice at festivals and fairs, right through college.

The Entrepreneurial Scholarship offered by the McKelvey Foundation is awarded to high school students who start their own businesses or nonprofit agencies. The foundation's founder is Andy McKelvey, who started his own first business selling eggs at age 14, and went on to found several successful businesses, the largest of which evolved into the online employment ad giant, Monster.com. The McKelvey Foundation currently supports over 600 students achieving a better future. You can find more information at http://www.mckelveyfoundation.org/

IKEA ® Plans to Invest 77 Million Dollars in Green Start-Up Businesses

2008-08-22T05:03:00Z

^{IKEA^® plans to invest $77 million in startup firms working to create environmentally friendly products, furniture and technologies. These products are reportedly more than just the furniture and home products now associated with the international retailer; but could include alternative home energy products including wind turbines, solar panels and water conservation systems for home and small business use. You can learn more about the retailer's environmental approach in a new report online. Click here to access.
IKEA^® has more than thirty five stores in the United States and more than 285 stores worldwide. In October, IKEA's first store will turn 50! The Almhult store in Sweden will celebrate fifty years in business. A much younger division, IKEA BUSINESS^®, is now operating in 22 countries around the globe to serve creative entrepreneurs. In October, IKEA BUSINESS^® and the WOMEN'S LEADERSHIP EXCHANGE^®are hosting a business building conference for entrepreneurs in the Boston area. You can get details and register online today by clicking here. The WOMEN'S LEADERSHIP EXCHANGE^®is a partner business organization with SBTV.com.}

Billions of Dollars in Business Taxes Go Unpaid

2008-08-21T05:03:00Z

Many foreign and U.S. based companies are failing to pay federal income tax according to federal researchers. A study by the Government Accountability Office indicates two-thirds of US corporations paid no federal income taxes between 1998 and 2005. The report finds a majority of foreign owned businesses escaped a tax bill during the same seven year period.

More than 38,000 foreign corporations had no tax liability in 2005 and 1.2 million US companies paid no income tax, the GAO said. Combined, the companies had $2.5 trillion in sales. About 25 percent of the US corporations not paying corporate taxes were considered large corporations, meaning they had at least $250 million in assets or $50 million in receipts.

Internal Revenue Service records reveal over one point six million U-S businesses owe over $58 billion in unpaid federal payroll taxes, including interest and penalties. Federal investigators charge these businesses are taking advantage of the existing tax enforcement and administration system to avoid fulfilling or paying federal tax obligations.

Over a quarter of payroll taxes are owed by businesses with more than 3 years of unpaid payroll taxes. Some of these business owners repeatedly accumulated tax debt from multiple businesses. For example, the IRS found over fifteen hundred entrepreneurs to be responsible for non-payment of payroll taxes at three or more businesses, and 18 were responsible for not remitting payroll taxes for a dozen different businesses!

The GAO is the investigative arm of Congress and the recent testimony about the billions of dollars in unpaid taxes owed by businesses before a Senate Committee is online. You can find more details by clicking on this link: http://www.gao.gov/new.items/d081034t.pdf

Peer to Peer Networking

2008-08-20T19:50:00Z

When most small business owners talk about networking; they are referring to a business conference or a local chamber luncheon. More savvy entrepreneurs are taking their networking online; for example SBTV.com Small Biz Central, is an online destination where small business owners and the self-employed can take part in forums, share ideas, and network much as they would at the local Rotary club. There is another online networking getting a lot of attention; peer to peer networking. Peer-to-peer networking, or P2P, has become the method of choice for sharing music and videos. While initially used to share pirated material, the system is now used by NBC, BBC and others to deliver legal video content and by Hollywood studios to distribute movies online. Experts estimate that peer-to-peer systems generate 50 to 80 percent of all Internet traffic. Most predict that number will keep going up.

However this peer-to-peer networking is the source of tension between users of bandwidth-hungry peer-to-peer users and struggling Internet service providers. To ease this tension, researchers at the University of Washington and Yale University propose a neighborly approach to file swapping, sharing preferentially with nearby computers. This would allow peer-to-peer traffic to continue growing without clogging up the Internet's major arteries, and could provide a basis for the future of peer-to-peer systems. A paper on the new system, known as P4P, will be presented this week at the Association for Computing Machinery's Special Interest Group on Data Communications meeting in Seattle.

"Initial tests have shown that network load could be reduced by a factor of five or more without compromising network performance," said co-author Arvind Krishnamurthy, a UW research assistant professor of computer science and engineering. "At the same time, speeds are increased by about 20 percent."

"We think we have one of the most extensible, rigorous architectures for making these applications run more efficiently," said co-author Richard Yang, an associate professor of computer science at Yale.

The project has attracted interest from companies. A working group formed last year to explore P4P and now includes more than 80 members, including representatives from all the major U.S. Internet service providers and many companies that supply content.

"The project seems to have a momentum of its own," Krishnamurthy said. The name P4P was chosen, he said, to convey the idea that this is a next-generation P2P system.

In typical Web traffic, the end points are fixed. For example, information travels from a server at Amazon.com to a computer screen in a Seattle home and the Internet service provider chooses how to route traffic between those two fixed end points. But with peer-to-peer file-sharing, many choices exist for the data source because thousands of users are simultaneously swapping pieces of a larger file. Right now the choice of P2P source is random: A college student in a dorm room would be as likely to download a piece of a file from someone in Japan as from a classmate down the hall.

"We realized that P2P networks were not taking advantage of the flexibility that exists," Yang said.

For the networks considered in the field tests, researchers calculated that the average peer-to-peer data packet currently travels 1,000 miles and takes 5.5 metro-hops, which are connections through major hubs. With the new system, data traveled 160 miles on average and, more importantly, made just 0.89 metro-hops, dramatically reducing Web traffic on arteries between cities where bottlenecks are most likely to occur.

Tests also showed that right now only 6 percent of file-sharing is done locally. With the tweaking provided by P4P algorithms, local file sharing increased almost tenfold, to 58 percent. The P4P system requires Internet service providers to provide a number that acts as a weighting factor for network routing, so cooperation between the Internet service provider and the file-sharing host is necessary. But key to the system is that it does not force companies to disclose information about how they route Internet traffic.

Other authors of the paper are Haiyong Xie, a Yale graduate now working at Akamai Technologies Inc., Yanbin Liu, at IBM's Thomas J. Watson Research Center, and Avi Silberschatz, professor and chair of computer science at Yale. The UW research was supported by the National Science Foundation. The presentation will take place Thursday, Aug. 21, 1:45 p.m. at the Grand Hyatt Regency in Seattle. For more information on the presentation, see http://ccr.sigcomm.org/online/?q=node/402. For more information on P4P, see a Yale press release at http://opa.yale.edu/news/article.aspx?id=5859.

Technology Can Help Business Owners Monitor Employees -- Is it Invasion of Privacy?

2008-08-20T05:02:00Z

Technology is transforming almost every part of business including human resources. Technical tools including global positioning systems, internet monitoring and biometric readers allow employers to monitor staff for safety and vital business reasons.

But where does a business owner stand in using surveillance technology to record employee activities for business purposes? Could a worker make a claim of invasion of privacy if their phone calls, computer use, or company car is monitored with GPS technology by their employer?

To avoid liability, employers should notify employees that the employer reserves the right to use GPS to monitor location, or technology to check phone and other communications or activities for safety and business reasons. SBTV.com Legal Advisor Cliff Ennico offers tips on legally monitoring employees and independent contractors in this streaming video segment I produced. Click here to see the segment.Any expectation of privacy may be avoided by notifying employees that company vehicles have GPS trackers installed and/or that company-issued cell phones have GPS capability, and that the employer may monitor vehicle (and employee) location and movement. Employers may justify GPS monitoring to employees as an aid in the recovery of stolen vehicles, to locate the vehicle (and the employee) in an accident or emergency, to ensure that drivers are taking required rest and meal breaks, and to monitor employee efficiency. You will find many more legal tips and segments about common workplace and business issues on www.sbtv.com