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2011年5月9日星期一

U.S. Raises Pressure on Pakistan in Raid’s Wake

Both the adviser, Thomas E. Donilon, and Mr. Obama, in separate taped interviews, were careful not to accuse the top leadership of Pakistan of knowledge of Bin Laden’s whereabouts in Abbottabad, a military town 35 miles from the country’s capital. They argued that the United States still regards Pakistan, a fragile nuclear-weapons state, as an essential partner in the American-led war on Islamic terrorism.


But in repeatedly describing the trove of data that a Navy Seal team seized after killing Bin Laden as large enough to fill a small college library, Mr. Donilon seemed to be warning the Pakistanis that the United States might soon have documentary evidence that could illuminate who, inside or outside their government, might have helped harbor Bin Laden, the leader of Al Qaeda, who had been the world’s most wanted terrorist.


The United States government is demanding to know whether, and to what extent, Pakistani government, intelligence or military officials were complicit in hiding Bin Laden. His widows could be critical to that line of inquiry because they might have information about the comings and goings of people who were aiding him.


“We have asked for access,” Mr. Donilon said on the CNN program “State of the Union,” “including three wives who they now have in custody from the compound, as well as additional materials that they took from the compound.”


The request had echoes of previous struggles with Islamabad, starting with the days right after the Sept. 11, 2001, terrorist attacks. Then, the United States insisted that Pakistan clearly choose sides and join the United States in fighting Al Qaeda, and Pakistan formally broke ties with the Taliban government, which was still in power in Afghanistan. But ever since, Washington has frequently lost out in its efforts to seek information about the loyalties and actions of top Pakistani officials.


Eight years ago, for example, the Bush administration demanded interviews with Abdul Qadeer Khan, the chief of Pakistan’s main nuclear weapons laboratory, as the United States sought to understand who in the Pakistani military or intelligence apparatus had helped sell nuclear weapons technology and designs to Libya, North Korea and Iran. Pakistan has refused, perhaps because Mr. Khan, while seeking freedom from house arrest, briefly threatened to tell all.


As one American official said after Mr. Donilon spoke Sunday: “Our guess is that the wives knew just who was keeping Bin Laden alive for all these years.” He added later, “It’s the Khan case all over again.” He insisted on anonymity as the United States tries to ease Pakistan’s anger over Mr. Obama’s decision to conduct the raid without telling Pakistani officials in advance, or seeking their involvement.


The Pakistani government has said nothing about allowing interviews of the wives, who were among the handful of survivors of the raid. One wife was shot in the leg by commandos as she tried to protect Bin Laden moments before he was killed.


Pakistan has said it will conduct its own investigation, but American officials doubt it will be credible. For more than two years Pakistan has slow-walked investigations into the 2008 siege in Mumbai, India, by a terrorist group, Lashkar-e-Taiba, that is believed to have strong links to portions of the Pakistani intelligence apparatus. To the distress of Pakistani officials, a trial scheduled to start soon in Chicago is expected to reveal evidence about the role in that attack of an officer of the Inter-Services Intelligence, Pakistan’s main military intelligence agency.


The sparring over the investigation about Bin Laden’s support structure threatens to go to the heart of what top American intelligence officials now routinely call the “double game” played by Pakistan. Mr. Obama alluded to that on “60 Minutes” on Sunday evening, saying, “We think that there had to be some sort of support network for Bin Laden inside of Pakistan.”


Mr. Obama added: “But we don’t know who or what that support network was. We don’t know whether there might have been some people inside of government, people outside of government, and that’s something that we have to investigate, and more importantly, the Pakistani government has to investigate.”


The debate inside the administration over how hard to press Pakistan for answers — and whether to make public any evidence the United States possesses — has revived the question of whether it is time to dispense with, or radically amend, the unspoken bargain between Islamabad and Washington.


For years, the terms of that deal were simple: for the sake of getting Pakistani assistance in hunting down Qaeda leaders, Washington funneled billions of dollars to the Pakistani military. And it said next to nothing about its fears that fundamentalists were burrowed in Pakistan’s huge nuclear complex, or about the country’s race to expand its arsenal, one of the fastest-growing in the world, a buildup that American officials fear could put more nuclear material at risk of falling into the hands of terrorists.


But as Mr. Donilon argued implicitly on Sunday, an alternative to that bargain could be even worse. Severing Pakistan’s funds could end the cooperation on counterterrorism — which still works fairly well in some of the tribal areas — and it would mean losing virtually all visibility into the worrisome nuclear arsenal.


“We have had difficulty with Pakistan, as I said, but we’ve also had to work very closely with Pakistan in our counterterror efforts,” Mr. Donilon said. “More terrorists and extremists have been captured or killed in Pakistan than in any place in the world.”


As Leonard S. Spector, the director of the Washington office of the Monterey Institute’s nonproliferation center, said, “It is hard to abandon Pakistan because of the danger of the nuclear program and the need for help in counterterrorism.”


On Thursday, the Pakistani chief of staff, Gen. Ashfaq Parvez Kayani, threatened a rethinking of all intelligence and military cooperation with the United States if it ever again mounted an operation similar to the Bin Laden raid. (Mr. Donilon refused Sunday to rule out a repeat.)


But the military council, reacting to widespread fears in Pakistan that a similar American commando operation could seize Pakistan’s arsenal of roughly 100 nuclear weapons, told Pakistani reporters that the country’s weapons and materials were “well protected” and that “an elaborate defensive mechanism is in place,” according to The Frontier Post, a Pakistani newspaper.


 

2011年5月6日星期五

Bits: PowerReviews Raises Money for E-Commerce Reviews

 

PowerReviews, a company that helps e-commerce sites show product reviews written by other customers, has raised $10 million in venture capital.


When you shop online at REI, RadioShack, Brookstone or 5,000 other Web sites, the reviews you read from other customers warning that the shoes run big or suggesting a digital camera are made possible behind the scenes by PowerReviews. It also sells review software to brands that aren’t retailers, like those in health care, financial services and education, which use it for real-time focus groups.


Shoppers are more likely to make a purchase if they read customer reviews, according to PowerReviews, even if some of the reviews are negative. At Diapers.com, for instance, the percentage of people who made a purchase after shopping on the site increased 14 percent after a month of showing reviews.


E-commerce companies have been slow to adopt social networking tools, even though shoppers say they want to make online shopping a social activity the way it is offline. Product reviews are a small way that Web sites make shopping more social.


Unlike many e-commerce sites, PowerReviews lets people add information about themselves in profiles. A mother reviewing a stroller could say that she has twins and lives in a hilly city, for instance, or a runner could say that he has wide feet. Reviewers can also connect their Facebook accounts to add their profile information.


“It provides a lot more contextual information about that reviewer so the shopper can actually feel more confident and comfortable with who the person is,” said Pehr Luedtke, chief executive of PowerReviews.


People can follow reviewers they relate to and see all their reviews on a site, and future reviews will appear in the shopper’s Facebook newsfeed. Seventy percent of reviews shared to Facebook get comments or likes, according to PowerReviews.


While retailers at first worried about allowing customers to write negative reviews on their sites, they have long since been forced to get over that because customers expect the information, said Cathy Halligan, senior vice president of marketing and sales at PowerReviews and former chief marketing officer at Walmart.com.


PowerReviews, whose biggest competitor is Bazaarvoice, raised the fresh capital from the Four Rivers Group and the Woodside Fund, in addition to previous investors who had already invested $27 million. The company plans to use the money to hire more engineers and salespeople to sell the product to retailers.


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2011年4月30日星期六

Caterpillar Surpasses Earnings Expectations and Raises Its Outlook for the Year

Caterpillar, the heavy equipment maker, said Friday that its first-quarter profit soared more than fivefold. It also raised its financial outlook for the year as a growing economic recovery increased demand for its mining and construction equipment.


The results topped analysts’ expectations, and shares rose $2.77, or 2.46 percent, to $115.41.


Its first-quarter profit reflected an industrial sector that is growing again, with most of its sales growth coming from the sale of big machines. When the recession hit in 2007, construction and mining companies cut back their spending on heavy machinery first, Mike DeWalt, Caterpillar’s director of investors, told analysts Friday.


For more than two years, companies held back their investment. But now they appear to have no choice but to replace aging machinery, raising Caterpillar’s sales, Mr. DeWalt said.


That means spending is likely to continue as companies replace more vehicles and even expand on growing demand.


The company said its net income climbed to $1.23 billion, or $1.84 a share, from $233 million, or 36 cents a share, in the period a year earlier.


Revenue rose 57 percent, to $12.95 billion from $8.24 billion.


Analysts had expected earnings of $1.30 a share on revenue of $11.43 billion.


Revenue at Caterpillar’s machinery and power systems division surged to $12.28 billion from $7.55 billion.


Based on its higher-than-expected sales, Caterpillar raised its 2011 outlook, forecasting revenue of $52 billion to $54 billion and net income of $6.25 to $6.75 a share.


It previously forecast revenue above $50 billion and net income of roughly $6 a share.


Caterpillar said its outlook would have been higher if not for the earthquake and tsunami in Japan, which damaged many of its suppliers. Supply disruptions and delays are likely to cost it $300 million in lost sales and $100 million in lost profit.


 

Gift to M.I.T. from Bose Founder Raises Tax Questions

But Amar G. Bose, who received his bachelor’s, master’s and doctoral degrees from M.I.T. and was a professor there from 1956 to 2001, placed some unusual restrictions on the Bose shares he donated to the university.


While the shares give the university majority ownership, they are nonvoting and thus confer no control over the company and its operations. Nor can M.I.T. sell the shares. It will receive dividends from Bose, which Nathaniel W. Nickerson, a spokesman for the university, said in an e-mail would be “used broadly to sustain and advance M.I.T.’s education and research mission.”


While Mr. Nickerson said it was “a very significant gift,” he would not discuss the financial details, including the potential value, saying that Dr. Bose and the Bose Corporation want to “keep details of financial matters confidential.”


M.I.T. officials, in announcing the donation, praised Dr. Bose’s teaching and research. “Amar Bose gives us a great gift today, but he also serves as a superb example for M.I.T. graduates who yearn to cut their own path,” Susan Hockfield, the university’s president, said in an article on its Web site.


Dr. Bose could not be reached for comment.


But some tax experts said the gift and the lack of detail about it raised questions. “We don’t know much about the terms of this gift, but it seems like it clearly falls into a gray area that has been of concern to Congress,” said Dean Zerbe, national managing director of the tax consulting firm Alliantgroup. “The university needs to be more forthcoming about the arrangements behind this donation so we can get a clear picture of what’s going on.”


Roger Colinvaux, an associate law professor at Catholic University and previously a staff member of the Congressional Joint Committee on Taxation, also said the gift raised questions for him. “If the shares truly can’t be sold so that there is some restriction on the university’s ability to transfer stock, then it would suggest it is a contribution of partial interest only, which would not be deductible as a charitable contribution,” said Mr. Colinvaux, who recently published an article in The Florida Tax Review that argues that the laws governing charity are outdated and inadequate. But Erik Dryburgh, a nonprofit lawyer, said he did not see a problem with the gift. “On its face, I don’t see the abuse or potential abuses that were present in some of the more abusive gift transactions we saw in the past,” Mr. Dryburgh said.


Mr. Zerbe and Mr. Colinvaux, though, said the gift brought to mind various tax shelters involving charities that came under scrutiny during the time they worked in Congress.


Mr. Nickerson, however, denied that Dr. Bose’s gift was similar to those tax strategies. “Further, it would not be appropriate for us to discuss the taxes of any of M.I.T.’s donors,” he said.


Most of the tax shelters cited by Mr. Zerbe and Mr. Colinvaux involved an elaborate strategy where privately held companies gave nonvoting shares to a charity and then, after a period of time, bought them back. The transactions attracted the attention of regulators puzzled by why donors would give nonprofit groups nonvoting shares, whose value — and thus potential for tax deduction — is limited by their nonvoting nature.


In 2003, the Senate Permanent Subcommittee on Investigations looked into such transactions and found that in some cases, they were an elaborate way of using a charity’s tax-exempt status to erase tax liabilities for the other shareholders of the company involved.


A charity involved in such a tax strategy would receive income from the company in proportion to the size of its holdings of nonvoting stock. But while that income was taxable, it was not distributed to the charity and stayed at the company to be reinvested.


The charity did not owe taxes on the income, anyway, because it was tax-exempt.


Later, the charity would sell the nonvoting shares back to the company at fair market value, and the company would distribute the income, tax-free, that had been associated with those shares among its other shareholders.


In other, similar cases, charities that received nonvoting stakes in privately held companies through gifts of stock used large losses they had incurred on unrelated businesses to offset taxes for other shareholders. Mr. Dryburgh wrote a paper on that type of tax shelter.


In 2004, the I.R.S. listed as “restricted” such transactions and denied deductions associated with them.


 

2011年4月23日星期六

Amazon’s Trouble Raises Cloud Computing Doubts

“This is a wake-up call for cloud computing,” said Matthew Eastwood, an analyst for the research firm IDC, using the term for accessing services and information in big data centers remotely over the Internet from anywhere, as if the services were in a cloud. “It will force a conversation in the industry.”


That discussion, he said, will most likely center on what data and computer operations to send off to the cloud and what to keep inside the corporate walls.


But another issue, Mr. Eastwood said, will be a re-examination of the contracts that cover cloud services — how much to pay for backup and recovery services, including paying extra for data centers in different locations. That is because the companies that were apparently hit hardest by the Amazon interruption were start-ups that, analysts said, are focused on moving fast in pursuit of growth, and less apt to pay for extensive backup and recovery services.


Amazon set up a side business five years ago offering computing resources to businesses from its network of sophisticated data centers. Today, the company is the early leader in the fast-growing business of cloud computing.


In business, the cloud model is rapidly gaining popularity as a way for companies to outsource computing chores to avoid the costs and headaches of running their own data centers — simply tap in, over the Web, to computer processing and storage without owning the machines or operating software.


Amazon has thousands of corporate customers, from Pfizer and Netflix to legions of start-ups, whose businesses often live on Amazon Web Services. Those reporting service troubles included Foursquare, a location-based social networking site; Quora, a question-and-answer service; Reddit, a news-sharing site; and BigDoor, which makes game tools for Web publishers.


The problems companies reported varied, but included being unable to access data, service interruptions and sites being shut down.


Amazon has data centers around the world, but the current problems have come from its big center in Northern Virginia, near Dulles airport. Amazon’s Web page on the status of its cloud services said on Friday that matters were improving but were still not resolved. A company spokeswoman said the updates would be Amazon’s only comment for now.


Big companies, that have decided to put crucial operations on Amazon computers are apt to pay up for the equivalent of computing insurance, analysts say. Netflix, the movie rental site, has become a large customer of the Amazon cloud. Most of its Web technology — customer movie queues, search tools and the like — runs in Amazon data centers.


Netflix said it had sailed through the last couple of days unscathed. “That’s because Netflix has taken full advantage of Amazon Web Services’ redundant cloud architecture,” which insures against technical malfunctions in any one location, said Steve Swasey, a Netflix spokesman.


BigDoor, a 20-employee start-up in Seattle, was knocked down by Amazon’s travails. It had backup and recovery services with Amazon, said Keith Smith, the chief executive, but only at Amazon’s data center in Virginia. “There’s always a trade-off,” Mr. Smith said, noting the expenses and developer time that would have been required to do more.


By Friday evening, most services at BigDoor, which makes game and rewards features for online publishers, were back up, but its Web site was still down.


The long-term toll to cloud computing, if any, is uncertain. Corporate cloud computing is expected to grow rapidly, by more than 25 percent a year, to $55.5 billion by 2014, IDC estimates.


Major technology suppliers are aggressively promoting different cloud offerings — some emphasizing a utility-style service, like Amazon, and others focusing more on selling big companies the hardware and software to more efficiently juggle computing workloads. The latter use the cloud technology, but companies own and control them — so-called private clouds.


The Amazon interruption, said Lew Moorman, chief strategy officer of Rackspace, a specialist in data center services, was the computing equivalent of an airplane crash. It is a major episode with widespread damage. But airline travel, he noted, is still safer than traveling in a car — analogous to cloud computing being safer than data centers run by individual companies.


“Every day, inside companies all over the world, there are technology outages,” Mr. Moorman said. “Each episode is smaller, but they add up to far more lost time, money and business.”


The Amazon setback, he said, should prove to be a learning experience. “We all have an interest in Amazon handling this well,” said Mr. Moorman, whose company is a competitor in the cloud business.


 

Amazon’s Trouble Raises Cloud Computing Doubts

 

“This is a wake-up call for cloud computing,” said Matthew Eastwood, an analyst for the research firm IDC, using the term for accessing services and information in big data centers remotely over the Internet from anywhere, as if the services were in a cloud. “It will force a conversation in the industry.”


That discussion, he said, will most likely center on what data and computer operations to send off to the cloud and what to keep inside the corporate walls.


But another issue, Mr. Eastwood said, will be a re-examination of the contracts that cover cloud services — how much to pay for backup and recovery services, including paying extra for data centers in different locations. That is because the companies that were apparently hit hardest by the Amazon interruption were start-ups that, analysts said, are focused on moving fast in pursuit of growth, and less apt to pay for extensive backup and recovery services.


Amazon set up a side business five years ago offering computing resources to businesses from its network of sophisticated data centers. Today, the company is the early leader in the fast-growing business of cloud computing.


In business, the cloud model is rapidly gaining popularity as a way for companies to outsource computing chores to avoid the costs and headaches of running their own data centers — simply tap in, over the Web, to computer processing and storage without owning the machines or operating software.


Amazon has thousands of corporate customers, from Pfizer and Netflix to legions of start-ups, whose businesses often live on Amazon Web Services. Those reporting service troubles included Foursquare, a location-based social networking site; Quora, a question-and-answer service; Reddit, a news-sharing site; and BigDoor, which makes game tools for Web publishers.


The problems companies reported varied, but included being unable to access data, service interruptions and sites being shut down.


Amazon has data centers around the world, but the current problems have come from its big center in Northern Virginia, near Dulles airport. Amazon’s Web page on the status of its cloud services said on Friday that matters were improving but were still not resolved. A company spokeswoman said the updates would be Amazon’s only comment for now.


Big companies, that have decided to put crucial operations on Amazon computers are apt to pay up for the equivalent of computing insurance, analysts say. Netflix, the movie rental site, has become a large customer of the Amazon cloud. Most of its Web technology — customer movie queues, search tools and the like — runs in Amazon data centers.


Netflix said it had sailed through the last couple of days unscathed. “That’s because Netflix has taken full advantage of Amazon Web Services’ redundant cloud architecture,” which insures against technical malfunctions in any one location, said Steve Swasey, a Netflix spokesman.


BigDoor, a 20-employee start-up in Seattle, was knocked down by Amazon’s travails. It had backup and recovery services with Amazon, said Keith Smith, the chief executive, but only at Amazon’s data center in Virginia. “There’s always a trade-off,” Mr. Smith said, noting the expenses and developer time that would have been required to do more.


By Friday evening, most services at BigDoor, which makes game and rewards features for online publishers, were back up, but its Web site was still down.


The long-term toll to cloud computing, if any, is uncertain. Corporate cloud computing is expected to grow rapidly, by more than 25 percent a year, to $55.5 billion by 2014, IDC estimates.


Major technology suppliers are aggressively promoting different cloud offerings — some emphasizing a utility-style service, like Amazon, and others focusing more on selling big companies the hardware and software to more efficiently juggle computing workloads. The latter use the cloud technology, but companies own and control them — so-called private clouds.


The Amazon interruption, said Lew Moorman, chief strategy officer of Rackspace, a specialist in data center services, was the computing equivalent of an airplane crash. It is a major episode with widespread damage. But airline travel, he noted, is still safer than traveling in a car — analogous to cloud computing being safer than data centers run by individual companies.


“Every day, inside companies all over the world, there are technology outages,” Mr. Moorman said. “Each episode is smaller, but they add up to far more lost time, money and business.”


The Amazon setback, he said, should prove to be a learning experience. “We all have an interest in Amazon handling this well,” said Mr. Moorman, whose company is a competitor in the cloud business.