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What can IIoT, the birthchild of the 4th Industrial Revolution, do for you? – Tech Wire Asia

IIoT helps work wonders in todays world. Source: Shutterstock

DIGITALIZATION has drastically transformed nearly all industries, including manufacturing. The transformation is so compelling that it has led to a new era known as Industrial Revolution 4.0 (IR 4.0).

It builds upon the foundations laid by the 3rd industrial revolution, IR 4.0 layers-in smart and autonomous systems that are driven by data and machine learning (ML), and relies heavily on the Industrial Internet of Things (IIoT).

For most manufacturers, the successful integration of IIoT into manufacturing processes is like having a superpower.

The seemingly endless benefits and capabilities that IIoT can provide, to control and automate applications, is clear. However, most manufacturers dont know where or how to begin this journey.

The first step is always crucial, as it can determine the success of IIoT implementation. Cutaway the technical jargon of the benefits surrounding IIoT, and it is easy to see what IIoT offers is simply a way to solve age-old industrial automation problems, and to address new ones like cybersecurity.

To start right, manufacturers must begin by transforming digitally. This includes updating existing systems that are built for specific processes to those that are can support various kinds of processes. Most importantly, they must have the capability of dealing with data at the scale that IIoT requires.

With the right mindset and system in place, here are the next steps that should follow:

Manufacturers must rethink their IT architecture. The usual way of implementing IIoT is to first stitch together various things such as controls, PCs, firewalls, gateways, servers, and now cloud services, to accomplish a given task.

However, getting all these to work together is challenging, as there are multiple technical domains with their own operating costs, and increased security vulnerabilities. This makes IIoT complex.

Therefore, processes applications and networks should be simplified using industrial PCs (IPC) or programmable automation controllers (PAC), which can combine formerly separate functions.

With traditional control systems, devices are tightly coupled to specific pieces of software, and come with a host of problems.

First, it weakens existing architectures, inhibiting the connectivity and scalability that IIoT applications require. Further, IT teams need to carry a heavier burden as they maintain infrastructure of unfamiliar operating technology (OT) systems.

Using networks like MQ Telemetry Transport (MQTT) for decoupling can drastically improve performance through bidirectional communications which only transmit data when changes occur.

With only one secure open port, security can also be improved. Further, with no re-entry of tags and a single source of truth on tags, management and maintenance is simplified.

With edge computing, users can keep the legacy equipment and applications in place whilst adding on the computing and networking capabilities that are required for integration into the IIoT.

Take monitoring Original Equipment Manufacturer (OEM) equipment performance as an example.

Instead of having a client open a tunnel through their firewall, which poses security issues, suppliers can monitor OEM equipment through an edge-programmable controller that can transfer data to a secure MQTT broker outside the firewall.

Another example of how edge computing can be leveraged is in the collection of Manufacturing Execution System (MES) and Overall Equipment Effectiveness (OEE) data.

Instead of having to navigate various firewalls, VLANs, and other segmented network configuration, edge devices can deliver information effectively to a central, on-premise MQTT server to its subscribers.

IIoT is undeniably the future of the manufacturing industry. Having the intention to leverage it is always good.

However, just having the right intentions will not make the cut, businesses must also have the right implementation to ensure a smooth and successful transition into the era of the Industrial Revolution 4.0.

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Power S812 Gets Another Reprieve, And Other Power Systems Stuff – IT Jungle

December 2, 2019Timothy Prickett Morgan

For whatever reason, Big Blue did not create a cut-down version of the Power9 entry server aimed at the smallest of the small businesses that run themselves on the IBM i platform. Meaning there was no Power S912 or Power S912 Mini replacement for the Power S812 and its specially priced Power S812 Mini. (The former is based on the Power9 chip, while the latter is based on the older Power8 chip, which has a lot less oomph per core.)

Back in March, IBM extended the life of the Power S812 and its Mini variant until November 29 of this year to help better plug the hole at the bottom of the product line. These machines were supposed to be removed from the product catalog on May 31. Now, after careful consideration, we see in announcement letter 119-076, dated November 12, that IBM is once again extending the life of the Power S812 and its Mini variant, all the way out to June 2020. Features for the Power S812 machines that were previously withdrawn have also been given a stay of product catalog execution, too.

As we have said before, without a low-end Power S912 or Power S912 Mini alternative, there is no reason at all to cancel the Power S812 and IBM should sell it as long as customers want it. Big Blue should just make a bunch of these put the processors and motherboards and put them in a warehouse somewhere. We think IBM should be aggressive on pricing with these machines to get customers on older Power5, Power6, and Power7 iron to move ahead, and the 64 memory cap should only be put in place for IBM i workloads and not Linux so customers could add a bunch of Red Hat Enterprise Linux partitions to the machine and consolidate Windows Server and Linux workloads on X86 iron onto logical partitions on the Power S812 system.

In announcement 119-083, IBM was uncharacteristically brief and said that the Power Enterprise Pools 2.0 software running on machines with Power Systems firmware level 940 or later can now span up to 1,000 virtual machines across a cluster of Power iron and up to 32 systems in a pool managed by a single cloud management console and up to 500 virtual machines per Hardware Management Console. IBM has been promising this larger pooling of capacity since April, and is now delivering it.

In announcement letter 219-242, IBM is adding Proactive Support for Power Systems to its Power Systems configurator tools for AIX, IBM i, Linux, and SAP HANA stacks. Proactive Support takes Software Maintenance for either AIX or IBM i and takes it to the next level, adding in dedicated managed support personnel from IBM as well as a bunch of proactive tools to monitor and help manage the systems and enhanced problem resolution capabilities to deal with problems fast when and if they crop up. Proactive Support for Power Systems debuted back in September 2018, which we told you about here.

Finally, in announcement letter 919-189, some older 1.6 TB and 3.2 TB NVM-Express flash cards and an older 16 GB DDR4 memory card used in selected Power Systems machines have been withdrawn.

Entry Power S812 Gets A New But Still Short Lease On Life

The Lowdown On Pricing For The Power S812 Mini

IBM i License Transfer Deal Comes To The Power S812 Mini

IBM Gives The Midrange A Valentines Day (Processor) Card

More Insight Into The Rumored Power Mini System

Geared Down, Low Cost Power IBM i Box Rumored

Tags: Tags: AIX, Hardware Management Console, HMC, IBM i, Linux, Power S812 Mini, Power S912 Mini, Power5, Power6, Power7, Power8, Power9, SAP HANA, X86

IBM i PTF Guide, Volume 21, Number 47Guru: End Of Year Feedback

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Data in the Cloud is Much More at Risk Than Enterprises May Think – CISO MAG

By Venkat Krishnapur, Vice-President of Engineering and Managing Director, McAfee India

Cloud computing has become near-ubiquitous, with Indias cloud market poised to reach over US$7 billion by 2022. The use of cloud services has empowered organizations to accelerate their businesses with more agile technology at moderate costs. Cloud is making IT more strategic than ever and companies are structuring themselves around the rapid transformation, growth and agility the cloud delivers. However, this rapid migration is also presenting complexities and risks that few businesses are equipped to deal with, and the security of data has taken center stage. While cloud providers are enabling more security than ever before, there are aspects of Security that they do not cover, and it becomes the responsibility of the users to ensure those are mitigated.

The data dilemma

While its true that sensitive data can be stored safely in the cloud, this is not an inevitable conclusion. According to the McAfee 2019 Cloud Adoption and Risk Report, 21 percent of all files in the cloud contain sensitive data and sharing of sensitive data in the cloud has increased by more than 50 percent. While most of this data is stored in well-established enterprise cloud services such as Box, Salesforce, and Office365, its necessary to realize that none of these services guarantee 100 percent safety.

Irrespective of how robust your threat mitigation strategy is, the threat rates are too high to have a reactive approach. Access control policies must be ascertained and enforced before data ever enters or exits the cloud.

Think of it this wayjust as the number of employees who require the ability to edit a document is much smaller than those who need to view it, it is likely that not everyone who needs to access certain data needs the ability to share it. Examine all permissions and access the context associated with data in the cloud environment. Control who has access. Access management requires three capabilities: the ability to identify and authenticate users, the ability to assign users access rights, and the ability to create and enforce access control policies for resources.

Large institutions that have a range of data, including sensitive consumer data to protect, and many cloud solutions to choose from, must balance potential benefits against risks of breaches and access integrity. What many organizations fail to realize when moving to the cloud is, to what extent they are responsible for securing their own cloud environment. Cloud providers (vendors) secure the infrastructure but securing data, and applications are all the responsibility of the cloud customer.

The Responsibility Equation

When it comes to security, CISOs are speculating if external providers can protect their sensitive data, while also ensuring compliance. There exists a misconception that the Cloud Service Provider is responsible for securing the cloud environment. This is where shared responsibility comes into play. In simple terms, this means that the organization and the vendor split responsibilities for cloud deployment. While the vendor may handle everything from physical networks, servers, and storage to operating systems, and even applications, but the organization will need to be responsible for the rest. In reality, no matter what level of service the vendor offers, the organization is ultimately responsible for the security and compliance of cloud deployment.

As it is with all aspects of cloud, responding to security incidents is also a shared responsibility. CISOs must learn to collaborate effectively with the Cloud Service Provider, to examine and respond to potential security occurrences. To collaborate effectively, they need to understand what information the vendor can share, and the limits within which they can assist.

Companies that are fulfilling their shared responsibility by securing their data are assuming substantially more benefits than those who arent taking data protection into their own hands. There are ways and means of mitigating security risks and the cloud is a feasible alternative for enterprises; the advantages from cloud-managed services far outweigh concerns.

Organizations need to regularly assess the security posture of their cloud environments, and that of their vendors, suppliers, partners all third parties. The Verizon breach is a fine example where the vendors mistake turns to be the organizations headache. The shared security model exists for a reason. No matter who is responsible for the security of the cloud data, the organization is eventually responsible for what happens to their data.

CASB a key enabler

Cloud access security brokers (CASBs) are on-premise or cloud-based security nodes, that sit between cloud service consumers and cloud service providers, to enforce security and compliance for cloud applications. These help organizations extend the security controls of their on-premises infrastructure to the cloud.

CISOs need to evaluate the full risk landscape in their on-premise and externally hosted cloud environments that can compromise security. Think of them this waythey act as central data authentication and encryption hubs for both cloud and on-premise applications, accessed by all endpoints, including personal devices like smartphones and tablets. CASBs are an essential element of a cloud security strategy, that helps organizations govern the use of cloud and protect sensitive data. These implement security procedures like authentication, authorization, encryption, device profiling, alerting and anomaly detection/prevention.

By using CASBs, organizations can:

Conclusion

Technology has come a long way since the dawn of computing that included conventional ways of data management. Today, cloud computing is revolutionizing the IT industry, shaking up the business landscape, and pretty much everything else it touches. Although migration to the cloud is helping CIOs in their digital transformation journeys, hastily jumping into it without the necessary maturity can throw all their efforts out of the window.

While the business advantage of cloud usage is significant, this rapid migration is also introducing complexities and risks that most organizations dont have provisions to deal with. If properly addressed, these issues will not hinder your IT roadmap and data doesnt have to remain anchored on-premise. The future of cloud rests upon introducing industry standards, that will help address regulatory, management and technological matters.

The stronger your cyber defenses are, the better you are at reducing the risk and the impact when something happens.

Disclaimer: CISO MAG does not endorse any of the claims made by the writer. The facts, opinions, and language in the article do not reflect the views of CISO MAG and CISO MAG does not assume any responsibility or liability for the same. Views expressed in this article are personal.

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Global Cloud Computing Market Competitive Analysis 2019 By Top Companies Strategies Till 2028 – Sound On Sound Fest

New York City, NY: Dec 02, 2019 Published via (Wired Release) The research offers the Cloud Computing Market 2019 Basics:Definitions, categorization, software, and analysis. Furthermore focuses on market product stipulation, arrangements, procedures, Cloud Computing improvement and so on. Thereafter, it studies the worldwide Cloud Computing market vital regional market demands. For example, profit, potential, stock price, manufacture, dispersion, requirement development speed, and forecasting, etc. In the long run, this market report set up SWOT analysis.

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Is Crowd Computing the Next Big Thing? – EE Journal

The upshot: Neocortix can muster smartphones to act as cloud computing resources.

From where we all sit, we see lots of cloud computing either being developed or fully rolled out. The general public is also heavily involved with the cloud, although they may not be as aware of it. To much of the public, the cloud might feel like an amorphous notion of giant banks of computers perhaps dominated by the Big Tech Overlords that are out of their control. In other words, theyre not personally involved with the cloud; its elsewhere and invisible.

And, for the most part, thats true. But theres one company, Neocortix, that has been working for a couple of years to change that. They aim to leverage the vast array of smartphones in the wild, harnessing them to handle cloud-computing-type work in the background when were not using the phone for something else. Add up the number of smartphones around the world, and theres some serious computing potential out there. Call it crowd computing?

And phone owners could be paid for the service to rent out their phones computing capacity. Neocortix claims on their website that top users can earn up to $80 a year for a phone thats engaged in computing for 8 hours a day; if available for 24 hours, it can earn up to $240 a year.

While this sounds straightforward enough (Neocortix will aver that it was anything but), several questions or perhaps concerns immediately come to mind. There are at least six of them:

Lets take these in order.

The security and privacy things both popped immediately to my mind. Lets start with the phone user. This isnt something that a phone can simply be roped into. You have to install an app, and with any app come permissions. If this app were to ask to use the phone or send texts, that would probably be a no-go. Neocortix say that theyve got a 2-1/2-year record of being responsible with the permissions, and they intend to keep it that way. If they were to change that policy on an update, then the phone owner would be prompted for new permissions. In other words, this isnt something that could be snuck into a future revision under the radar.

So, if we trust permissions enough to allow notorious privacy-abusers like Facebook to install apps on our phones, then, hopefully someone with a decent track record should be easier to OK. For the time being, Neocortix has been vetting their cloud users, but that doesnt scale and will be stopping in the not-too-distant future. So the permissions will be what we count on to protect our phones.

What about for the folks doing the computing? Should they be afraid that phone users would be able to see whats going on? Will data breadcrumbs be left on the phone? According to Neocortix, the computation happens in a secure container. In fact, to them, this looks like Linux. The container is unable to see outside files and processes on the phone. Thats good for both the person doing computing and for the phone owner. Theres also no long-term storage at this point. Any data is erased when the session ends. They have a storage version on their roadmap, so that policy may change someday.

When it comes to illicit use, their approach is to use policy and enforce it. Theres only so much that can be done to force behavior using technology; at some point you have to limit things by policy. Even for something as simple as photo storage, each such cloud service has policies as to what kind of content is acceptable (or legal). Although Facebook is working hard at this, right now, automated bots have limited success at flagging certain legal content that violates their internal standards and, in true cat-and-mouse fashion, folks try to alter images in ways that can foil the bots. So, ultimately, Facebook has to rely on complaints and their ability to put users into Facebook jail or ban them outright.

The same holds for pretty much any cloud service, and it will hold for Neocortix as well. I asked about a hypothetical situation once a storage product were to be available: lets say that some cloud-service user is abusing the system to park illicit photos on the various phones. If caught and terminated, what happens to the files on the phones? And, in particular, would the phone owner end up being legally responsible for those images?

The specific answer is TBD. If, in the future, we were to offer a distributed shared-economy storage product, we would have to have permissions, disclaimers, policies, protections, encryption, and remedies at all levels of the product to protect the phone owners and our company from a malicious [cloud-service] customer. Getting that right can be done, but it would be a significant amount of work which we would take very seriously, and that is one of the main reasons that we have not begun any work on such a storage product we have our hands full with our Scalable Compute product, and we will for the foreseeable future.

The next question about the battery has a surprisingly simple answer: this will work only while the charger is plugged in. Likewise for the data-plan question: this works only when the phone is connected via WiFi, meaning that it doesnt chew up data-plan data ever. So they guarantee, with clear text, that participating will not drain your battery and will not overrun your data plan.

Those usage conditions suggest that most phones will be on the nightstand charging at night when they can participate. That provides about eight hours a day of use (and potential income). Spare phones, however, can also be utilized up to 5 phones total for one account. If those phones are left on, with the charger connected and the WiFi active, then they can provide 24 hours of computing availability. This is where the earning potential of 8 vs. 24 hours comes from. If you have two regular-use phones and three spares on the same account, then you have 2 x $80 plus 3 x $240 for a total of $880 per year. And yes, if you earn more than $600 in a year, you will be 1099ed.

Finally, how do the cloud-computing customers interact with this whole service? Neocortix has worked very hard to make the interaction look exactly as it would look if using Amazons cloud service. Given the potential challenges of getting folks to sign up for something new like this, the usage model is a barrier that Neocortix doesnt want to introduce into the process. Existing scripts and approaches should work with little or no modification, easing that friction.

So, will we all eventually be hosts to unlimited amounts of computing on our phones? Its hard to say; it depends on how good a job they do convincing people that its safe. It sounds like theyve done all the right things. But phones have become these playgrounds for companies trying to harvest data from everywhere. Theres some dodgy history to be overcome, and I count myself as one of the skeptical ones when it comes to downloading apps. Then again, I usually come around if theres real value to be had. So, if this gets traction, Id probably join the crowd. Would you?

More info:

Neocortix

Sourcing credit:

Lloyd Watts, Founder and CEO, Neocortix

Related

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India vs. the people: The battle over cryptocurrency ownership continues – Forkast News

India has a curious relationship with blockchain. On the one hand, the Indian government is a huge proponent of blockchain technology, and nearly half the states in India have already initiated government-sponsored blockchain projects. At the same time, the government has been very ambivalent toward cryptocurrency, drafting a slew of measures in the last couple of years to control its growth.

In April last year, the Reserve Bank of India (RBI), which functions as the countrys central bank, issued a ban prohibiting banks from receiving or transferring any money related to cryptocurrencies. This came as a huge blow to the crypto ecosystem in India because people were no longer able to cash out their cryptocurrency holdings. Some of the countrys top crypto exchanges like Koinex and Zebpay ended up shutting down while others like WazirX decided to navigate the situation by creating alternate peer-to-peer exchanges.

The RBIs ban isnt the only stumbling block for Indias cryptocurrency ecosystem. In July this year, a committee appointed by the Indian government proposed a blanket ban on cryptocurrencies across the country and recommended imposition of severe fines and penalties on all crypto-related activities. The committees recommendations have taken the form of a draft law that will soon be up for discussion in the Indian Parliament. If it gets passed, this law could mean the end of Indias already struggling cryptocurrency scene.

Activists fight back

Naturally, these measures have met with major protests from Indias cryptocurrency players. Their attack is two-pronged. As far as the RBI banking ban is concerned, the Internet and Mobile Association of India has filed a petition in the Supreme Court that is still being heard. They argue that the RBI is acting out of its zone of authority by banning banking for virtual currencies. They claim that unless theres a legislative policy regarding cryptocurrency in place, the RBI has no business creating regulations around this issue at all.

As for the proposed legislation that will soon be up for discussion in Parliament, there is a strong grassroots movement coming from within Indias cryptocurrency community calling for a rethink of these regulations. Their stance is simple and pragmatic given the decentralized nature of cryptocurrency transactions, the government will find it very hard to actually prevent them from happening.

Read more: SFC aims to regulate digital asset trading platforms

Instead, these transactions will enter the gray market. This means that chances of fraudulent activity will now go up dramatically, and fraud victims, who would be seen as complicit in illegal activity, will likely hesitate to seek redress. Positive regulation, rather than a blanket ban, would be a much better approach. Not only would the government be in a much better position to monitor fraudulent activity, but it would also be able to realize revenue through cryptocurrency taxation.

Another argument is that it would be really hard for the Indian government to continue promoting and supporting blockchain technology if it bans cryptocurrency completely. Cryptocurrency and blockchain are intrinsically linked, with many blockchain startups issuing their own tokens and raising money through ICOs, or initial coin offerings. A blanket ban will end up discouraging the growth of blockchain in India.

Growing public support

This call for a more informed approach toward cryptocurrency has found massive support across the board. #IndiaWantsCrypto a social media campaign for positive cryptocurrency regulation is well over 300 days old but continues to see a growing following. There also seems to be a growing demand for cryptocurrency investing in the country, particularly among high-net-worth individuals. A survey by the Hurun Research Institute shows that as many as 9.6 percent of Indian high net-worth individuals said that they would increase their cryptocurrency investments in the next three years.

Then there are the cryptocurrency exchanges, the entities that are the most affected by this environment of uncertainty. While some have bowed to the inevitable and closed down, others continue to innovate. CoinDCX, one of Indias top crypto exchanges, already offers a suite of services, including a P2P platform, margin trading in more than 200 markets, and cryptocurrency lending. Now, it has partnered with Australian crypto trading platform Koinfox so that its users can access advanced trading tools like risk-management strategies and algorithmic trading.

WazirX, another crypto exchange, has recently launched a Smart Token Fund program. This is a community-driven initiative where cryptocurrency enthusiasts can connect with more advanced traders who can trade with their funds in return for a percentage of the profits.

Despite Indias draft legislation and the overall uncertainty, there does seem to be some cautious optimism in its cryptocurrency community. The grassroots movement for positive regulation seems to be gathering significant momentum, and most experts are convinced that India wont be saying goodbye to cryptocurrencies anytime soon.

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Cryptocurrency This Week: Binance Launches Ethereum Futures, Hackers Steal $50 Mn From Korean Exchange And … – Inc42 Media

Binance along with TravelbyBit has also created a crypto-backed travel rewards card

Over cryptocurrencies worth $205 Mn have been stolen from eight crypto exchanges world over

Coincover, BitGo launch crypto-insurance product, called Cryptocurrency Wills.

Following the footsteps of China, while the Indian government is working towards the development of blockchain, it is equally focussed on banning cryptocurrencies in the country as well. The existing draft cryptocurrency bill says so.

Responding to a question in Lok Sabha, Ministry of Electronics and Information Technology (MeitY) stated,

Considering the potential of Blockchain Technology and the need for shared infrastructure for different use cases, an approach paper on national level blockchain framework is being prepared, for scaling up and wider deployment of blockchain-based use cases.

Meanwhile, Bitcoin, after registering a 6-month low price at $6.63K on November 25, has gained over $1K since then. The cryptocurrency is currently trading at $7,780.

Lets take a look at this weeks news!

Leading cryptocurrency exchange Binance has launched Ethereum futures contracts with up to 50x leverage on its Binance Futures trading platform. The platform had earlier launched BTC contracts and claims to have already reached an all-time high daily trading volume of more than 370,000 BTC (approximately $2.7 Bn USD) in recent market spikes.

Commenting on the launch, CZ (Changpeng Zhao), CEO of Binance said,

Binance Futures is a relatively new product, so is the crypto derivatives industry. We are committed to driving product innovations and growing our industry.

The company, which last week had acquired Indian cryptocurrency exchange WazirX, has also announced a partnership with Australian crypto entity TravelbyBit. The duo has created a cryptocurrency-backed travel rewards card to facilitate crypto payments on major travel websites.

After Youbit, another South Korean exchange Upbit exchange has now been hacked. According to various reports, this year alone, over cryptocurrencies worth $205 Mn have been stolen from eight crypto exchanges world over, including the latest Upbit.

According to Upbits website, on November 27, hackers had stolen $49 Mn worth of Ethereum from its hot wallet.

In a statement, Lee Seok-woo, CEO of Doo-myeon which operates Upbit disclosed, At 1:06 PM on November 27, 2019, 342,000 ETH were transferred from the Upbeat Ethereum Hot Wallet to an unknown wallet.

The cryptocurrency exchange has suspended its operations till further notice.

UK-based startup Coincover and BitGo have launched Cryptocurrency Wills, a crypto insurance product. Out of 18 Mn Bitcoins mined so far, as over 4 Mn Bitcoins are reported to be lost, the Cryptocurrency Wills is being presented as a wholesome assurance to cryptocurrency asset planning for the future.

The Cryptocurrency Will Kit will have a Unique ID Card, two Cryptocurrency Will notifications cards, and an instructional booklet, said reports. The customers need to store their cryptocurrencies in a multi-signature wallet of BitGo, which will provide an end to end double authentication security solution to the customer. The customer will possess at least two keys with ID numbers for transactions.

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China Shuts Down 173 Cryptocurrency Exchanges and Token-Issuing Platforms – BeInCrypto

China has reportedly shut down all cryptocurrency exchanges operating within the country, according to a Twitter update from Chinese blockchain outlet CnLedger.

CnLedger quoted the Peoples Bank of China (PBoC) Financial Stability Report (2019), stating that the 173 Chinese virtual-currency trading and token issuing platforms have all exited without risk.

This move means that the Chinese government has finally closed down every competitor in the cryptocurrency space, leaving the door open for its soon-to-be-released stablecoin. The PBoC had informed the general public about the legality of cryptocurrencies and what it plans to do to curb illegal bitcoin trading, last week. It vowed to crack down on cryptocurrency exchanges. In the ensuing announcement, the agency said it would use measures such as inspections and a ban on crypto trading activity to resolve related risks in a timely manner.

Cryptocurrency speculation has risen in China in recent weeks since President Xis heartwarming speech on blockchain technology. The increase in optimism for blockchain technology has followed with a restrictive arm towards cryptocurrency trading. The PBoC even reiterated its commitment to stamping out cryptocurrencies by informing investors not to confuse the technology with the use case.

China has gone full throttle in its case of informing the world that it likes blockchain, not Bitcoin. This is coming less than two weeks after hailing Bitcoin as the first successful application of the blockchain technology.

Chinas Silicon Valley, Shenzhen, has instigated a crackdown identifying 39 cryptocurrency companies that it claims have been responsible for defrauding consumers. Just last week, Beijing based cryptocurrency exchange BISS was shut down by the authorities and arrests were made.

Images courtesy of Twitter, Shutterstock.

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More traditional investors are eyeing cryptocurrency to diversify their portfolios – Forkast News

Cryptocurrencies are not known for their stability as an investment, yet growing numbers of institutional investors are diversifying their portfolios with digital assets, according to a survey by Fidelity Investments.

The survey found 47% of institutional investors saw cryptocurrencies as suitable to add to their investment portfolios, and the same percentage of respondents appreciated the innovation behind the digital assets.

Institutional investors are using funds to invest in cryptocurrency and get exposure without [risk], as it is a cash settlement so you dont have any custody risk, nor do you have any [money laundering risk with] tainted coins. These are issues you have all the time otherwise, said Jan Brzezek, founder and CEO of Crypto Finance AG.

Crypto Finance is a crypto asset management, brokerage and storage platform that aims to mitigate the risk involved in investing in various cryptocurrencies. Despite the volatility of cryptocurrencies such as bitcoin, a growing number of investors are experimenting with them as an asset class.

Earlier this month, the New York State Department of Financial Servicesgranted a license to Fidelity Digital Assets, a cryptocurrency branch of Boston-based Fidelity Investments.

Tom Jessop, President of Fidelity Digital Assets, told Reuters that demand for digital currencies has been changing, and that they are Seeing strong demand and greater diversity of client types there are more traditional investors. When we started it was crypto funds and hedge funds.

Nonetheless, Bitcoin prices have recently dropped nearly 50% in value from their highest point in 2019, and is trading at around USD$7,000, according to CoinDesk.

One reason why investors may be seeking out cryptocurrencies is global economic instability affecting traditional assets amid an ongoing trade war between China and the U.S. Moreover, 46% of respondents to Fidelitys survey said that they found digital assets low correlation to other assets as a positive factor.

Hong Kong may become a testing ground for the use of digital assets as a financial instrument as the citys Securities and Futures Commission (SFC) recently announced anew regulatory framework for virtual asset trading platforms.

SFC CEO Ashley Alder said at Hong Kong FinTech Week that the new rules will cover aspects of financial security including custody, know-your-customer requirements, anti money laundering rules and market manipulation.

See related article: Behind the Scenes Conversation with: Ashley Alder, CEO of Securities and Futures Commission

A lack of regulation for cryptocurrency in numerous countries has been one aspect hindering wider adoption from traditional investors, and observers will watch to see how the legitimacy of obtaining an SFC license will affect the industry.

Other financial organizations experimenting with cryptocurrency include the owner of the New York Stock Exchange, Intercontinental Exchange Inc., and CME Group Inc.

Forkast.News Senior Editor Sam Reynolds spoke with Brzezek on the sidelines of Hong Kong FinTech Week to find out how traditional investors are starting to adopt cryptocurrencies.

Sam Reynolds: We are back at Hong Kong FinTech Week and were talking now with Jan from Crypto Finance. Crypto Finance offers a fund that gives investors some exposure to crypto. Jan, tell us about your product and how would it differ from investing directly in crypto.

Jan Brzezek: Yeah, thanks very much for having me here. Were not just doing asset management, we have two other offers as well, which is brokerage and custody infrastructure. But back to your question on asset management. What we do is we come from traditional finance.

We aim to fulfill all the best practice in the traditional world, and give clients and traditional investors access to this asset class without the operational risk on top, which is normally pretty high in crypto, and thats what most of the investors are still cautious on. Thats why they are not currently investing.

Sam Reynolds: Well, thats a good point. When you talk about risk, that is pretty much synonymous with crypto, so perhaps you can go into how this risk is avoided with your products.

Jan Brzezek: So what we do is we set up a CTA fund. Thats a long/short fund and algorithmically quant-driven fund where we just go long and short the bitcoin futures at a CME. Currently, the only CME bitcoin futures are the only regulated proper futures which have proper liquidity.

Obviously you have Bakkt now as well, but liquidity there is still rather small. And with that, you can really get this exposure without [risk], as it is a cash settlement so you dont have any custody risk, nor do you have any [money launderingrisk with] tainted coins. These are issues you have all the time otherwise.

Sam Reynolds: We had the Crypto Winter, which was a time where crypto assets, be it coins like Bitcoin or Ethereum or other projects, experienced quite a big chill. Talk to me about this Crypto Winter and how you guys survived it.

Jan Brzezek: It was definitely not fun for everyone in the space, but I think it was very healthy. There was such a hype before and now you really see most of the not really professional or sustainable businesses disappear. So you have very good companies here who are strong, tech-wise, business-wise, professionally set or professionally managed, and I think thats exactly what we need in the space.

Sam Reynolds: So we are at Hong Kong FinTech Week. What is your favorite trend youve seen here so far in the show floor?

Jan Brzezek: I think Asia is very progressive in general. For Hong Kong, obviously, as a very big financial hub, it was very important to be here as well and to meet investors, partners, other fintechs. You have very good companies here in Hong Kong in the crypto space.

And for me, it was good to feel a little bit the spirit, and to see whats going on, exactly what they are doing. Maybe we can cooperate. You know, its this is about an ecosystem. Its not just about you or me. Its about working together and really building this foundation and this technology.

Sam Reynolds: Exactly. Definitely seeing lots of that at the show, cooperation and building a stronger ecosystem. All right. Well, thanks for your time.

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How to match your IT workloads to the right cloud – TechBeacon

When it comes tomanaging a multi-cloud world, matching your workloads to the best cloud hosting platforms is one of thebiggest challenges. Rational decision making often gives way to an emotional exercise, where beliefs, biases, and other human behaviors set the stage for a less-than-optimal hosting strategy.

If you use themodel described below, as our team did, you'll increase your chances of establishing a fact-based, data-driven hosting strategy that's easier to define and execute, while avoiding any perceptions of bias in your recommendation.

[ Enterprise Service Managementbrings innovation to the enterprise. Learn more in TechBeacon's new ESM guide. Plus: Get the 2019 Forrester Wave for ESM. ]

As Cloud CTO at Micro Focus, I was asked to helpbuild a model that we could apply with as little prejudice as possible. So our teamestablished a set of core principles that enabled us to build a balanced model that we can consistently use to evaluate the placement of specific workloads as well as for our overall hosting strategy.

It could work for you, too. The core principles are:

While your hosting decision model should support placement decisions for multiple workload types, there is almost no end to the number of workload types you could define. That's why you need to introduce a usability challenge into the model.

In this, less is more. We narrowedour list to three core workload types: development and rapid prototyping, traditional production, and cloud-native production.

Development and rapid prototyping workloads include everything development and testing teams might require from a hosting provider to develop and test their code.

Traditional production workloads are those that rely on the base infrastructure-as-a-service (IaaS) set of resources and have no cloud software-as-a-service (SaaS) requirements. You can deploy them in almost any public or private cloud environment.

Cloud-native production includes cutting-edge, cloud-reliant workloads that make moderateto heavy use of cloud concepts and/or rely on cloud platform-as-a-service (PaaS) offerings.

[ Learn how to transform your IT with AIOps in TechBeacon's guide. Plus: Download the analyst paper on how AI is changing the role of IT. ]

While building our model, we analyzed many KPIs from our body of research, picked up a set of KPIs that formed the model core, and then categorized those into five dimensions.

Building a model with dimensions helps us to have logical KPI groupings and to establish a scoring system per dimension. In this way, we can easily evaluate a hostingenvironment based on how well it scores in each dimension, instead of comparing each and every KPI across hosting options.

Figure 1: The five dimensions of a hosting assessment model. (GTM is "go-to market" strategy.)Source: Micro Focus

Heres a high-level view of the models five dimensions, along with a few KPIsfor each.

Thisdimension establishes the hosting environment's security and complianceposture, allowing you to weigh how secure and compliant each one is.

These KPIs evaluate employee background checks, physical access, access logs, and how cryptographic keys are being managed. The KPIs should evaluate support for ISO27001 or GDPR to assess complianceposture.

Comparing hosting providers on cost can be a futile exercise if you're focused on migrating a large data center, which is too big and has many variables, or if you're comparing compute or storage units, which is too granular.

The hosting decision model introducesthe concept of application comparison. For every workload type you pick, you need a poster-child application that you can model in each environment you're evaluating. Calculate the infrastructure cost for hosting that application from the bottom up, and then compare between providers.

Account for your labor costs for each application, since that can be different for each environment. For example, a private cloud has infrastructure support requirements that don't exist with public cloud. A best practice is to use labor per compute unit (virtual server), then multiply by number of servers within the application model.

Finally, if you wish to gaininsight intohow each environmentmight affect your organization's earnings, your cost model should have an earnings before interest, taxes, and amortization (EBITDA) impact, expressed as a percentage.

Here you evaluate the potential support each environment provider offers. This may highlight whether the environment provider will be able to deliver the level of support you need to properly rely on the provider for hosting services, as per your expected service-level agreement (SLA).

Some of your KPIs should measure the provided support level and the number of dedicated technical resources the hosting service provider will assign to you.

Since some workloads will be hosted with an environment provider to drive business, you should establish what potential business leverage a provider could deliver. This could be a critical insight that guides your hosting decision.

KPIs might includeanestablished joint go-to-market strategy, the amount of market development funds the hosting entity will provide, and how many joint and aligned global system integrators or regional system integrators are available.

Assessing environment resilience and performance is a key factor in meeting internal and customer SLAs, so properly evaluatingthese criteriais critically important.

To obtain such metrics you might need to rely on your previous experience to calculate anaverage number of incidents, mean-time-to-repair, or theperformance and availability of sample applications. However, you could also obtain publicly accessible information abouthosting providers to calculate the KPIs.

Some KPIssuch as whether the hosting entity supports demand elasticity, zero-downtime upgrades, and support for multi-zone availabilitymay be readily available from the provider's marketing literature.

Now that you have identified your model's dimensions and supported workload types, you can determine which workload types best align with your various dimensions.

For example, development and rapid prototyping might lean more toward hosting environments that optimize for cost, while traditional production might be better suited to environments that optimize for quality of service and security.

You can introduce this bias into your model with a weighting scheme where positivelybiased dimensions receivea higher weighted score than do other dimensions for a given workload type. See the images below for specific examples.

Once you have defined your model, it's time to populate its dimensions and KPIs with data for the cloud hosting platforms of choice. For this exercise, you need to gather data from yourexperience in hosting workloads,industry benchmarks, and any self-assessments made public by the hosting environment providers.

For balanced KPI results, you need between four and six months of data to counter any seasonality and other biaseswithin the datasets. Remove outliersby using the median instead of the average.

Once you have calculated the KPIs, assign a score between 0 and 10 to each dimension. Since each KPI is likely to have a different impact on the overall dimension score, apply your weighting logic as you calculate the dimension score.

The outcome of this phase is your cloud assessment model for each cloud-hosting option. Each should have a score for every dimension, as well as detailed KPI scores within those dimensions.

This gives you a standard lens through which to differentiate your cloud hosting options.

Using the weighting schemeyou created for each workload,evaluate each cloud hosting provider for each workload type. Do this by using the cloud hosting dimension score with the workload weight for each dimension, normalized between zero and 10.

You've now created an overall score for each combination of workload type and cloud-hosting platform. The higher the score for a specific workload type, the more aligned that cloud hosting platform is for that workload.

By establishing this baseline, you'llprovidea hosting decision recommendation that matches workload types with the right cloud hosting platform.

There are cases, however, that might impose additional requirements that cut across your recommendation results. For example, if a government or geographical presence is required, then your recommended cloud hosting platform must support that.

The lesson here: Build your overall cloud hosting strategy on your model's output while allowing for a certain percentage of cases that will go out of bounds.

Matching your workloads to the right cloud hosting platforms need not become an emotional exercise. Follow the steps above and you'll have a much more rational, data-driven basis for making those decisions while avoiding any perceptionof bias.

[ Learn how robotic process automation (RPA) can pay offif you first tackle underlying problems. See TechBeacon's guide. Plus: Get the white paper on enterprise requirements. ]

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