ETD: 868 VoIP Experience; Crack in Computer Security Code Raises Red Flag; Eight Things Every Marketer Needs to Know About the Luxury Market

E-Tailer's Digest etd_post at gapent.com
Tue Mar 15 12:40:02 GMT 2005


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0868            March 15, 2005
  George Matyjewicz, Moderator         mailto:georgem at gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
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  CONTENTS

  [1]  Greetings
  [2]  VoIP Experience
  [3]  Crack in Computer Security Code Raises Red Flag
  [4]  Eight Things Every Marketer Needs to Know About the Luxury Market

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  [1]  Greetings.
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Hi All:

Two of our list members share their experience with VoIP, with one on them 
including legal issues and confiscation of equipment.  Very interesting 
reading material.  Yes, you can save, if you are willing to sacrifice.

Just when we thought electronic signatures were safe, comes a report that 
the security is not safe, and can be broken.  As an old partner from 
Australia once said, they only safe computer is one where it is unplugged 
and buried somewhere.

Pam Danziger was a keynote speaker yesterday and has a report available on 
the luxury market.  It is one of the hottest retail markets (the other 
being dollar stores), so it behooves you to take a look.

Tell us about your business which will remain  for posterity at 
our  "Members: Who Are You?" site.   This is a courtesy to our members who 
contribute to our forum, and not merely a way to advertise for 
free.  Anything to do with the retail world, i.e., supplier, retailer, 
consulting, etc.  http://etailersdigest.com/resources/members/index.htm And 
we have a form there for you to tell us about you.  As I said when I first 
proposed this idea, we have "known" each other for a long time, yet we 
often don't know anything about each other.   So, tell us who you are and 
what you do.

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com

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  [2]  VoIP Experience
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Our company has been using Vonage for all outbound calls and some of our 
inbound 800 numbers for the last six months. We've been able to cut our 
monthly phone expenses in half, but the trade off has been lower 
reliability. There are times, like this week, where at least half of our 
outbound calls don't go through on the first try. Calls are either dropped 
while being placed or we get a "fast busy" signal. Also, even though we pay 
more than a residential customer, Vonage doesn't offer support options 
specifically for businesses. We realize that VoIP as offered by Vonage and 
its competitors is far from mature and there will be growing pains. 
Ideally, we would like to be offered a real business plan, with better 
reliability and support.

Our long distance was running $1600 to $1800 a month and it is now down to 
around $900. We have unlimited outbound calls for a flat fee per line and 
our inbound 800 calls are now around 4 cents a minute, with the first 100 
minutes included in our plan. There was little investment on our part. We 
are currently using seven lines and there is a $30 activation fee per line 
and Vonage supplies the VoIP adaptor, which is connected to our phone 
system as any other phone line. We already had the Internet bandwidth 
available, so there is no additional charge there. The occasional problems 
with Vonage do get cleared up and my boss is willing to put up with them 
because of how much we save on our phone bill.

Best Regards,

  --Dean Martin
Pointofsale.com
---------------------------
888-430-1685
509-375-0598
Fax: 509-375-0629
http://www.pointofsale.com

+++ [Next] +++

I have been investigating the VoIP market for the last year or so, 
principally with an eye to the Bermuda market. We have the problem here 
that every phone call for a distance greater than 21 miles is an 
international call. The best rate available with POTS (plain old telephone 
service) is 16c a minute for evening and weekends to the US, UK or Canada. 
To talk to somebody during business hours is 29c to the same countries. 
With VoIP I can now do it for under 4c a minute or free if using Skype (or 
similar).

I have been using DialPad and found it to be very satisfactory and I use 
Skype for calling friends or relations who have the same software on their 
PC. I do not find the quality for SkypeOut (the method of calling to POTS) 
to have such clear voice quality.

I have also imported handsets direct from China which make the conversation 
much more natural. Using your computer's mike and speakers tends to give 
echo on the conversation and wearing a headset makes you look like a call 
centre employee.

So there you are, a great telephone alternative for the people of Bermuda 
which could save them a lot of money every month.

However, in the eyes of the Bermuda Government I am operating a Public 
Telecommunication Service without a license and on Christmas Eve at 4.30, 
my office was raided by representatives of Government. They had a warrant 
to take away my PC and any other items deemed appropriate to pursue their 
case against me in the courts. They also put a seal on my web site making 
it impossible for people to purchase from me.  I am still waiting to hear 
any more from them about further progress.

In summary, I have found VoIP to be a very efficient and economic method 
for international calling. Quality of calls is on a par with the average 
mobile conversation. I would recommend every SME to give it a try. In these 
days of ever increasing costs, any savings can make a contribution to the 
bottom line. If in doubt, use VoIP to talk to your vendors/suppliers and 
use POTS to talk to your customers!

You can see the handsets that I am offering at www.Bermuda-VoIP.com 
Shipment of these handsets is expensive to anywhere outside Bermuda, but if 
any reader of E-Railer's Digest would like one they can drop me an email 
via the web site and we can come to an arrangement!  You will also find a 
lot of other information on the site which might answer some questions 
about VoIP.

Best regards


Richard Woolnough
Bespoke Solutions Ltd
www.BespokeSolutionsLtd.com
+1(441)295 0951
We can tailor your business

PS A sign of the times - Bermuda's best known department store, 
Triminghams, announced on Tuesday that it is closing its doors at the end 
of July after 163 years in business.  My interest? I used to work for them 
for 19 years before parting company four years ago.
http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20050309/NEWS/103090045

+++ [Moderator's Comments] +++
Thanks for sharing Richard.  It is scary to think that the government can 
seize equipment like they did.  What we take for granted in countries like 
the U.S., isn't so in other countries.  The telcos have a monopoly, 
especially in the Caribbean (I know, Bermuda is not in the 
Caribbean).  Justifying their position, they spent lots of money building 
an infrastructure and were guaranteed no competition for a period of time 
(usually 10 years).

Keep us posted.

George

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  [3]  Crack in Computer Security Code Raises Red Flag
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With worries about online security already at a high pitch, the discovery 
of a crack in a widely used Internet encryption technique has raised 
another red flag among government agencies and computer-code experts.

The technique, called a "hash function," has been used for years by 
Web-site operators to scramble online transmissions containing credit-card 
information, Social Security numbers and other sensitive data. Hash 
functions are at work, for instance, for most of the millions of 
transactions that take place on the Internet every day. The system, 
involving an algorithm, or mathematical formula, was thought to be 
impenetrable.

But last month, a team of researchers from Shandong University in eastern 
China began circulating a draft of a paper showing that a key hash function 
used in state-of-the-art encryption could be less resistant to an attack by 
hackers than had been thought.

Hash functions generate digital fingerprints, or "hashes," of documents or 
data. As with fingerprints, the uniqueness of the hash is what makes hash 
functions a great tool for verifying the authenticity of information.

But the Chinese team found different pieces of data that yielded the same 
hash when team members used a hash algorithm called SHA-1 -- and their 
method generated the identical hash far more efficiently than experts 
thought possible. SHA-1 is a federal standard promulgated by the National 
Institute of Standards and Technology and used by the government and 
private sector for handling sensitive information. It is thought to be the 
most widely used hash function, and it is regarded as the state of the art.

Cryptographers say exploiting the flaw for malevolent purposes doesn't seem 
practical, even using a lot of computer power. Hash functions are also 
often used in conjunction with other cryptographic techniques, which 
haven't shown any flaws. But if someone were to exploit the newfound flaw, 
the most immediate threat would be to applications involving 
"authentication." A hacker theoretically could set up a dummy Web site that 
appears to have the security credentials of a trusted, secure site -- and 
then steal data that is shipped to this site by unsuspecting users.

Despite what are believed to be remote chances of abuse, the discovery has 
set off alarms in the computer-security industry because it overturns a 
bedrock belief about a popular encryption system. "Our heads have been spun 
around," says Jon Callas, chief technology officer at encryption supplier 
PGP Corp. of Palo Alto, Calif. "Everything is now topsy-turvy." PGP has 
begun to replace SHA-1 in its programs.

Details at...
http://online.wsj.com/article/0,,SB111084838291579428,00.html

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  [4]  Eight Things Every Marketer Needs to Know About the Luxury Market
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A white paper that contains the text of "The Eight Things Every Marketer 
Needs to Know About the Luxury Market," presented by Pam Danziger in a 
keynote Address on luxury at GlobalShop 2005 in Las Vegas is available at 
http://www.unitymarketingonline.com/downloadPDF.php

"In the past few years, the luxury market has been 'traded up' and 
'marketed down.'  It's been 'masstiged,' 'democratized,' and 'reinvented.' 
And worst of all for marketers today, it's been 'obfuscated,'" says Pam 
Danziger, president of Unity Marketing.

Drawing upon a three-year longitudinal study of luxury consumers, 
Danziger's speech will set the record straight on the new luxury market and 
how marketers and retailers can tap its potential.  Danziger explains how 
the only way marketers can win with consumers today is to enhance and build 
more luxury into their brands at every price point. The challenge is that 
the concept of luxury has changed as the tradition-bending baby-boom 
generation has evolved into the new luxury market.

Contact:  Pam Danziger, 717-336-1600


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