Must the Macalope do everything?

Hopefully the final word on the 802.11n enabler charge.

The Macalope had thought the rather inconsequential business of Apple’s decision to charge for its 802.11n enabler was behind us, but two recent posts — one pro and one con — both manage to get it wrong, so he guesses he’s going to have to weigh in on the issue.

The Seattle Times’ Brier Dudley says:

…Apple said generally accepted accounting principles forced it to charge customers $1.99 for a software upgrade. Accounting standard-setters said that’s untrue.

(The Macalope may address the entirety of Dudley’s bone-headed piece in another post.)

Meanwhile, InfoWorld’s Tom Yager says:

Apple is required to charge you for the enabler. 802.11n was R & D intensive; it’s not your granny’s WiFi. You can’t amortize R & D costs against new products–in this case, AirPort Extreme and Apple TV–and then give that same R & D away somewhere else. That would create what’s called an accounting irregularity, and these aren’t popular at places like Apple and Dell just now. The only way to put 802.11n into existing Mac users’ hands was to turn it into a product against which R & D could be charged.

The Macalope knows what you’re saying to yourself. You’re saying, but, Macalope! Those can’t both be right!

(You do know the Macalope can’t hear you when you talk to your computer, right?)

So, mighty Macalope, was Apple required by GAAP to charge customers for the enabler or not?

(Still can’t hear you!)

No, technically it was not. Dudley’s statement is technically correct while Yager’s is technically incorrect.

But before you picket your local Apple Store, you should hear what Dudley jackassically fails to discuss, which Yager does get into. Because Apple’s decision suddenly makes a lot more sense when you look at what the cost to the company would have been to not charge for the enabler.

After apparently receiving some, ahem, negative feedback on his piece, Dudley defends his statement by indignantly linking to a Wall Street Journal piece and pulling a favorable quote. But he ignores one of the piece’s key grafs:

If Apple had given the enhancement away free, Apple’s auditors could have required it to restate revenue for that period and could possibly have required Apple to start in the future to defer all the revenue from computer sales until all such enhancements are shipped, this person said. That would have had a devastating impact on Apple.

Yes, Apple was technically incorrect in stating that it was “required” by GAAP to charge for the enabler. It could just have easily decided to reopen its books (for the second time in about as many months), taken a charge against prior earnings and potentially affected its future ability to recognize revenue when products ship. That sounds awesome, doesn’t it?

In addition to having a responsibility to its customers, Apple has one to its shareholders, and that option is clearly damaging to shareholders.

Ultimately, however, this whole thing is a rather absurd discussion. Are we really arguing over a $1.99 download? And since when did the Wall Street Journal have a cadre of reporters assigned to covering Apple’s accounting treatments?

Can we be done with it now?

Good thing he didn't double-dog dare

Cringely on Gates.

Because then this would be really embarrassing.

Cringely on Gates famous challenge to break Windows every month:

According to US-CERT, some 812 Windows vulnerabilities were discovered in 2005 alone — an average of one per month … for 67 years.

The Macalope, his antlers dripping with sarcasm, is sure that won’t happen to Vista (trolls can read a more detailed version of the Macalope’s opinion on Vista security here).

And, speaking of trolls, some of the Macalope’s friends who happen to be trolls may find this amusing (tip o’ the dripping antlers to Wil Wheaton).

And the joke comes full circle!

Artie MacStrawman.

Step 1: Crazy Apple Rumors invents Artie MacStrawman.

Step 2: Someone starts an Artie MacStrawman blog (actually, the second Artie MacStrawman blog).

Step 3: Irony-deficient security enthusiast takes Artie MacStrawman to task for being… Artie MacStrawman.

I’ll just leave you with this last bit of ignorance from the Artie MacStrawman blog, “I love Apple, Mac OS X is invulnerable and I’d jump off a cliff if Steve asked me to.” and “The Mac is utterly impregnable to attack. I’ll never switch to Windows or Ubuntu or something.” That sums up the thinking of most OS X users… a flawed sort of logic that really makes me believe that OS X is the new Linux… at least when it comes to cocky, arrogant, know-it-all users….

You can’t write this stuff.

Stunning analysis. But not in a good way.

Fortune’s Deirdre Terry baffles the Macalope.

Fortune’s Deirdre Terry asks some questions about Jobs’ DRM statement that no one’s thought of:

So yes, it would be more convenient for everyone if all digital files could be played by any player or any other digital device. But where’s the customer clamor?

Could Jobs’ eloquent plea on behalf of consumers all be a gambit to force Apple’s content suppliers to renegotiate their deals and make it possible to download music and video directly onto the iPhone?

Unfortunately for Terry, the reason no one’s thought of them is probably because they’re so blindingly ignorant.

While customers aren’t exactly in revolt over FairPlay (Doctorow’s not a customer anymore), there is ample outcry for DRM-free music and plenty of evidence that DRM is what’s holding back the online music business.

But it’s her main point that’s so eye-poppingly bizarre. There’s absolutely nothing the Macalope knows of from a licensing perspective that would stop Apple from allowing someone to directly buy and download FairPlay-protected music from iTunes on an iPhone. He certainly wouldn’t want to try it using Cingular’s crappy EDGE data transfer speeds and wouldn’t want to try syncing on a regular basis on anything short of 802.11n [Edited for clarity as the Macalope was thinking “syncing” by not typing it. Damn these hooves!]. That’s probably why the iPhone — right now — seems to require USB docking to iTunes to transfer music.

It’s a rather baffling why Terry seems to think that Apple’s deal with the recording companies prevents FairPlay-protected songs from being transmitted over 802.11. That’s obviously not true as you can share your library over a network and stream it to an Airport base station.

Does Fortune pay for analysis like this? And how much?

Then why not do it?

Why can’t Apple set some of your music free right now?

Cory Doctorow says, OK, you want to offer DRM-free music? Do it. There are numerous artists that would love to sell their music DRM-free on iTunes.

But Apple has been saying for years that DRM on iTunes is all or nothing (see the third comment, and a tip o’ the old antlers to Hack the Planet).

That’s clearly a business decision — there’s no technical reason Apple couldn’t offer both DRM-ed and DRM-free songs. But it could easily be contractual. Apple’s agreement with the big four may say they can’t offer DRM-free music as the recording industry executives might fear that the great communist scourge of uncontrolled music files would eat their lunch and make love to their women better than they can.

Jobs has many reasons for challenging the labels — mostly due to Apple’s legal issues in Europe — but that doesn’t make his statement any less significant and Doctorow’s persnickety response doesn’t give it enough credit.

Right now it really does seem that DRM-free music is coming to a Mac (and a PC) near your some time in the not too distant future. Customers want it, analysts want it, and now technology companies want it.

Real Steve: "Imagine."

Jobs opines on DRM.

Steve Jobs provides his Thoughts on Music (tip o’ the antlers to BoingBoing) and specifically DRM.

Here are some key sections:

Apple was able to negotiate landmark usage rights at the time, which include allowing users to play their DRM protected music on up to 5 computers and on an unlimited number of iPods.

However, a key provision of our agreements with the music companies is that if our DRM system is compromised and their music becomes playable on unauthorized devices, we have only a small number of weeks to fix the problem or they can withdraw their entire music catalog from our iTunes store.

So far we have met our commitments to the music companies to protect their music, and we have given users the most liberal usage rights available in the industry for legally downloaded music.

Apple has concluded that if it licenses FairPlay to others, it can no longer guarantee to protect the music it licenses from the big four music companies.

Imagine a world where every online store sells DRM-free music encoded in open licensable formats. In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat.

Why would the big four music companies agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven’t worked, and may never work, to halt music piracy.

Much of the concern over DRM systems has arisen in European countries. Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free.

It’s an interesting read. Jobs also says that as only 3% of music on an iPod is FairPlay-protected, Apple doesn’t see it as a scheme to lock users in.

The part of Steve Jobs will be played by Charlton Heston. The part of Mitch Bainwol will be played by Yul Brynner (antler tip to Your Daily Dosage for the correction).

Apple does not read this blog

Or they do and they hate the Macalope.

Looks like there’s a new “Get a Mac” ad.

Entitled “Security”. And the fact that it was posted today (or so the Macalope surmises) is most likely a return salvo after Gates’ comments to Newsweek.

Um…

OK, it’s really funny but it’s kinda not what the Macalope had in mind when he asked Apple to demonstrate that it takes security seriously.

Sigh.

More security professionalism, please.

The Macalope responds to a post by David Maynor

David Maynor has come out in defense of Bill Gates’ recent comments that OS X is security swiss cheese and he churlishly derides the Mac community’s response.

In the post, Maynor reminisces that Apple’s “Get a Mac” ads were what got him into Apple security research last year. Is it just the Macalope or is that a little odd? As a child did he also run after Mean Joe Green with a Coke bottle, begging him to throw a jersey at him?

The thing that really upsets me about the Mac community going off on Bill Gates is that Apple does the same exact thing. Their “we don’t have security problems” commericals [sic] are the same thing as what Bill Gates said. If you want to be mad at Bill then hold Steve accountable for the same actions as well. The arrogant commericals [sic] Apple runs has done nothing but win them alot of researchers who are breaking their systems that would not have otherwise given them a second look.

The Macalope thought there was something strange about Maynor’s assertions here so he went back and watched all of the “Get a Mac” ads. Do you know how many of them discussed security?

One.

So, it’s not “commercials”. It’s “commercial”.

Why did David Maynor get so bent out of shape over one commercial? Seems a little absurd.

It’s also a little absurd that Maynor is trying to conflate Apple’s silly, funny ad with statements made by the founder and chief technologist of Microsoft to a Newsweek reporter.

Those things are not comparable.

But for grins, let’s pretend that they are and take a look at the relative truth behind each. Here’s the salient part of the “Get a Mac” ad entitled “Viruses.”

PC: Last year there were 114,000 known viruses for PCs.

Mac: PCs. But not Macs.

Is this true?

The year in question is 2005 and the data comes from a report from Sophos that says:

By December 2005, Sophos Anti-Virus was identifying and protecting against over 114,000 different viruses, worms, Trojan horses and other malware.

So, we can quibble over the use of the word “virus” to describe a host of malware, but it’s not really important to the argument. Sophos does, however, make a Macintosh version of its program, so maybe some of those are Mac viruses.

OK. Just how many Mac viruses are there?

According to Viruslist.com, 111. [CORRECTION: As noted in comments, this is the number of vulnerabilities, not viruses. The number of viruses is actually probably significantly lower which maybe helps proves the point about the Mac’s lower market share being its saving grace.]

Now you can look at the ad’s assertion yourself and decide if it’s “arrogant”, but the Macalope will note that Apple’s at least 99.9% correct here ((114,001 – 111) / 114,001). And it’s 100% correct if you just take it at face value – there are not 114,000 viruses for the Mac.

Maybe it’s the text Apple shows after you run the “Viruses” ad on the web that caused Maynor so much chafing. Let’s look at that.

114,000 Viruses? Not on a Mac.

Kinda covered that.

Mac OS X was designed with security in mind.

Well, that’s a piece of rather obvious fluff. Of course it was.

Windows just wasn’t built to bear the onslaught of attacks it suffers every day.

This is true simply be definition. Most viruses are written for Windows. An OS can’t “bear the onslaught” of a virus written to take advantage of one of its flaws. OS X was not “built to bear the onslaught” of the 111 viruses written for it.

A Mac offers a built-in firewall, doesn’t advertise its existence on the Net, and isn’t compromised within an hour of being turned on.

All undeniable fact.

Aaand that’s it.

Hmm.

Maybe it’s just the Mac guy Maynor doesn’t like. Some people don’t like him.

OK, let’s look at the primary security-related statement against the Mac in Gates’ interview.

Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally.

No. They do not. They didn’t even come out with one every day in the month of January. If Gates had said something more generic like “They keep coming out…” one might be inclined to cut him some slack, but he didn’t. He said “Every single day…” and that is false.

Gates does have something more of a point about upgradability and one can argue about who copied whose interface all day long.

But that’s not what Maynor’s talking about. He’s talking about security and it’s really not a contest. Apple’s ad is true and Gates’ comments are not.

Yet Maynor feels justified in giving props to Bill Gates for stickin’ it to the man.

He also expects howls of uproar over his assertion that Vista is more secure than OS X. Truth be told, Maynor’s far more qualified to make a judgement about that than the Macalope, but the horny one would point out that just because Vista’s more secure on paper, doesn’t mean that it will provide a more secure user experience. Windows is still and will continue to be the bigger target.

The biggest threat OS X has seen recently is from the supposedly responsible members of the security world who seem to be trying to provide Microsoft cover and bring trouble to Mac users by publishing (and executing) OS X exploits.

All because they didn’t like an ad and got pissed off by some comments on Slashdot.

If you read Maynor’s post, you’ll notice that it would be very easy to pump up the volume of the snark in response. Maynor is not a very good communicator. He may be a very good security researcher, but he’s not a terribly good writer (yet, anyway) and history has proven that he’s not terribly adept at PR.

So the Macalope could just haul off on Maynor and we could all have a good time, laugh ourselves silly and go back to watching That Phone Guy. But keep reading. Let’s hear Maynor out.

Microsoft only changed when users demanded better security, and it’s only when the Mac community calls for similar protections that Apple will include them in products.

Here, dear readers, comes the glorious moment. That most special of after-school special moments.

Because you know what? Here, he’s right.

He’s absolutely, 100% right. No matter what crazy-assed things he’s said up until now, his final point is spot-on.

We, as Mac users, have been skating. We’ve been skating on the fact that no one writes exploits for the Mac. And as Apple becomes more and more of a household name, that will not stand.

This is not to say that Apple isn’t already working on security enhancements for OS X or that it will ever have as much malware as Windows. But while Apple has been attempting to leverage its historically good reputation, Microsoft has been trying to reverse its historically bad reputation by aggressively implementing new technologies that will make it harder to write exploits for Windows.

The Macalope wants OS X to be the most secure operating system there is, practically as well as theoretically, and there is certainly some evidence that Apple does not take security seriously enough. Maynor did not even mention the company’s flippant handling of the incident where it shipped iPods infected with a Windows virus.

That incident, by the way, was marked by a universal condemnation of Apple’s comment from Apple bloggers (including the Macalope) and suggestions that the company needs to take security more seriously, an inconvenient truth for Maynor who loves to rail against Mac zealots.

To be fair, some guy on Slashdot probably thought Apple’s comment was teh awesome so…

In general, the Macalope says the hell with David Maynor. Anyone who gets such a gigantic bee up his butt over a 30-second ad shouldn’t be taken seriously.

But at the same time the Macalope would really like to see Apple demonstrate that it does take security more seriously than as a marketing tool.

UPDATE: Maynor provides some clarification in a post that the Macalope agrees with in its entirety. He’s also taken exception to this post in comments.

UPDATE THE SECOND, ELECTRIC BOOGALOO: The blogstorm continues as Maynor responds to John Gruber’s brief post.

You are not mad that Microsoft’s latest Operating Systems out classes OSX hands down in the areas of security and anti-exploitation technology but instead one comment Bill Gates made to a reporter? Tell you what, when Microsoft starts running commercials that feature the Month of Apple Bugs then you have every right to complain.

This is really interesting. Maynor, who complains at great length in a previous post about how Apple’s Lynn Fox screwed him by issuing false statements to reporters, does not find Gates’ false statement to a reporter to be noteworthy. It is noteworthy. It’s noteworthy in the kind of way that you write a response to it on your blog. Not in the kind of way that you decide “Oh, yeah? Well, I’m gonna crack Windows!” and then you come up with an exploit but you screw up the delivery and devote months of your life to defending yourself and quit your job because you think your employer screwed you and finally decide to write a book about the whole affair.

In general, the Macalope expects more truth from a Newsweek interview than a commercial where actors are pretending to be computers, but maybe he’s just one of those craaaazy Mac zealots.

As for the first part, the Macalope’s not sure why this isn’t obvious to Maynor but it’s hard to get worked up over security and anti-explotation technology when there are so few exploits for the Mac. Your average Mac user has never, ever been a victim of malware. Ever. Once.

Is this thing on? Hello? Hello?

Of course, an ounce of prevention being worth a pound of cure, the Macalope would really like to see Apple implement some of the technologies Maynor is talking about and sooner rather than later. So he’s doing what Maynor suggests.

So there.