The worst IT project disasters of 2013

The Healthcare.gov rollout leads a pack of painful projects

Trends come and go in the technology industry but some things, such as IT system failures, bloom eternal.

"Nothing has changed," said analyst Michael Krigsman of consulting firm Asuret, an expert on why IT projects go off the rails. "Not a damn thing."

"These are hard problems," he added. "People mistakenly believe that IT failures are due to a technical problem or a software problem, and in fact it has its roots into the culture, how people work together, how they share knowledge, the politics of an organization. The worse the politics, the more likely the failure."

Here's a look at some of this year's highest-profile IT disasters.

Healthcare.gov: By now everyone knows about the health insurance shopping website's problems upon the Oct. 1 go-live, when many users couldn't access the system and only about 30 percent were actually able to sign up for health care.

Following a frenzied effort to fix bugs in the system, U.S. officials said Healthcare.gov had been stabilized as of Dec. 1. But the work is not yet complete. Last week, officials said 25 percent of applications sent from Healthcare.gov to private insurers contain errors that were caused by the website.

Yet to come is a final fix, as well as a full accounting of why the Healthcare.gov launch stumbled.

Krigsman is skeptical that fallout from Healthcare.gov will lead to any major reforms. But the controversy has had one effect, he added. "IT failures have really hit the mainstream media in a way they never did before."

Queensland Health payroll system: The government of Queensland, Australia, announced in August that IBM would no longer be allowed to sign new consulting contracts with the state after its "bungle" of a payroll system project that reportedly could cost taxpayers up to AUS$1.2 billion (US$1.1 billion).

"It appears that IBM took the state of Queensland for a ride," Queensland Premier Campbell Newman said at the time.

Last week, Newman's administration began pursuing a lawsuit against IBM, according to published reports.

It's not clear how that effort will play out, given that a 264-page analysis of the project commissioned by the government concluded earlier this year that due to past agreements, "there was no means by which the State may seek damages from IBM for breach of contract."

For its part, IBM has maintained that the project's issues were out of its hands, and that the state failed to properly scope the project and define its requirements.

MyCalPAYS: In February, the state of California terminated its contract with SAP in connection with a massive payroll project called MyCalPAYS. More than US$250 million has been spent on the project, which dates to 2005. SAP, which says it isn't to blame for the problems, came aboard after the state fired original contractor BearingPoint.

Last month, California Comptroller John Chiang filed suit against SAP, seeking compensation. California has paid SAP $50 million for its work on the project, but it's not clear how much money the state will get back even if its lawsuit is successful.

Marin County, California, sued SAP and Deloitte over a different ERP project. The case was settled but reportedly netted the county only $3.9 million, after it spent $5 million on legal fees and more than $30 million on the system, which will be replaced with a different product.

Royal Bank of Scotland: Computer system woes continued this year for RBS, including an outage on Cyber Monday that left account holders unable to make payments or get cash.

The Cyber Monday failure was "unacceptable," RBS CEO Ross McEwan said in a statement. RBS has failed to properly invest in its IT systems for decades, but a plan is under way now to change that with details coming next year, he added.

Last year, RBS suffered an IT failure that led to delays in wage and tax credits being paid into customer accounts.

Deloitte's unemployment system woes: Deloitte found itself under fire in California, Florida and Massachusetts this year over problems with unemployment compensation systems built by the consulting firm.

The problems resulted in delayed payments to thousands of job seekers. Deloitte principal Mark Price told Massachusetts lawmakers during a public hearing in October that the state had "a successful, working system today," and only a "relatively small percentage" of jobless people had been affected. The problems stemmed from "very specific data issues" in the state's legacy system, he said. Price also said the reports of problems with Deloitte's projects in Florida and California were overblown.

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Microsoft's new volume-licensing scheme could simplify buying, managing products

Microsoft service include a new Web site that offers a new set of options for making purchases and keeping track of agreements easier

Midsize companies should get ready this month as Microsoft introduces a new purchasing scheme that changes the way it deals with its volume licensing customers.

The company says the purpose of the new Microsoft Products and Services Agreement (MPSA) is to make buying and managing volume licenses easier, according to a blog by Richard Smith, the general manager of Microsoft’s World Wide Licensing & Pricing.

BACKGROUND: An Independent View of Microsoft Software License Agreements

SECURITY: Microsoft bulks up security; brings encrypted email to Office 365 Enterprise bundles

MPSA replaces Microsoft Business and Services Agreements, Select Plus Agreements and Microsoft Online Services purchasing terms and conditions. The program will include a new Web site that offers a new set of options for making purchases and keeping track of agreements easier, according to Smith.

An online seminar on the MPSA is scheduled for Dec. 10 for U.K. customers, according to the blog Software Ruminations.

Customers using hybrid clouds based on Microsoft products want more flexible licensing to accommodate their unique needs, Smith writes in his blog.

The contract structure for volume licenses changes under MPSA so there will be one agreement covering all of a customer’s organizations and individual entities in a way that “delivers the best overall value based on total volume,” as Smith describes it.

Buying all Microsoft software and online services as a single package means fewer terms and conditions to manage, he writes. MPSA will include Web-based tools for choosing payment options and give customers an overall view of what they’ve bought and licensed. Eventually the tools will be expanded to gather business intelligence to help customers plan future purchases, he says.

Microsoft has piloted MPSA during the past year, and this month becomes available in the U.S., U.K., Germany and Canada, with more to come next year.

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Microsoft takes off the gloves with Windows Server 2012 R2 and Windows 8.1

Long list of updates answer criticisms and throw punches at virtualization, cloud foes

In Windows Server 2012 R2 and Windows 8.1, Microsoft has released a combination of operating system updates that we find very compelling. Microsoft has joined much of the rest of the industry in annual release roll-ups with feature additions, and this time, they listened to the critics. More interesting are the one-upmanship features targeted directly at its virtualization and cloud competition. Some were stunning, despite a few strange and perhaps anecdotal basic problems that we found.

Windows 8.1 is the answer to loud and vociferous complaints regarding radical changes to the user interface found in Windows 8, and is currently a free upgrade for 8.0 users. What's apparent in 8.1 is that Microsoft is committing strong changes to the tablet and touch user interface in its Surface devices first, in order to compete with Apple and Android. If 8.0 didn't convince you, then 8.1 is a shot across the bows of those believing that desktops and notebooks rule IT.

Microsoft has targeted Windows 2012 R2 directly at data center and service provider use, along with baseline connectivity to Azure Cloud services and third party Azure services providers. Microsoft's other targets are Oracle and VMware.

Microsoft offers a free add-in for Windows 2012 R2 of its Azure Pack to connect cloudlike constructs, and anchors it with various free and paid appliance services that battle competing IaaS/SaaS providers and other MSP/cloud competitors. Through gritted teeth, Microsoft is also supporting specific instances of commonly used Linux distros as manageable guests within the Hyper-V and Azure infrastructure.

By contrast to the heavy work done in 2012 R2, Windows 8.1 is a far lighter weight set of changes, and largely addresses criticisms of Windows 8.0.

Authentication and access enabling technologies are important in a BYOD universe. Many Windows users find Apple's iTunes to be difficult to use as an authentication system under Windows, with frequent unthreaded new releases. Microsoft has responded with a unified identity method enhancement of its Windows Intune ecosystem and Active Directory-poised authentication methods.

The Good News
What we liked about Windows 2012 R2 is that it's generally easier to use than Windows 2012 -- fewer sharp edges -- and 2012 R2 contains stronger networking, storage, and hypervisor skills, we found in testing. Microsoft has also made it almost fiendishly consistent and easy to join Windows 2012 R2 to Azure Clouds -- and it's practical if organizations have fast Internet pipes.

Both new Windows releases are highly targeting enterprise customers, although a Windows 2012 R2 Server Essentials Edition (traditionally limited to 25 or fewer users) is available, and not reviewed here. The Essentials Edition must live within three total VMs, which limits possible users, unless something unforeseen and magical happens in hardware.

If organizations want a control plane, Microsoft attaches System Center 2012 R2 releases of Ops Manager, Virtual Machine Manager, and Configuration Manager that are deeply intertwined into the depths of Server 2012 R2 and Hyper-V.

During briefings with Microsoft, we had to constantly disambiguate what was a Server or Azure or System Center feature as Microsoft blends them together. In doing so, Microsoft wants its value proposition to be considered as a mixture of the three, but this review focuses on only the Server, Windows 8.1, and the free connection to Azure Pack.

For its part, Windows 8.1 solves the silliness of bringing back the familiar Desktop, along with ways to access applications in ancient and hallowed ways. While the Windows Start menu is gone (available from third parties if desired), there's a method to show apps selections onscreen easily. Windows 8.1 is also faster than 8.0 — this additional speed makes the most impact when it comes to video drivers and the Server Message Block (SMB3) communications transport protocol.

SMB3 speed isn't proprietary to Windows as SAMBA 4.1 -- the open source SMB emulator that can be used by Mac OS, Linux, BSD, and other non-Windows operating systems, is now compatible with SMB3. However, SAN and NAS devices may not support SMB3 until vendors can get caught up.

Much attention in Windows 8.1 surrounds features that will be found in tablets, like Microsoft's own Surface Pro. Multi-touch object manipulation and attention towards touch and tethered keyboard combinations abounds. We tested 8.1 and found an enormous variety of keyboard manipulations and touch motions that produced interesting effects.
Microsoft server 2012

2012 R2 and Hyper-V
Windows 2012 R2 contains a number of storage options poised towards Hyper-V, but we found that R2 can probably be booted from a wristwatch and store data on our sneakers -- if we format them NTFS. We successfully booted local hardware (you may need BIOS updates), iSCSI, and virtual network storage. Many will be booting VMs, and Microsoft has made this especially simple under Hyper-V V3.

Hyper-V V3 has received much work, and Microsoft considers it a “Generation 2” hypervisor VM-hosting platform that delivers a higher degree of para-virtualization and cuts away much hardware layer specific driver emulation, although other OS versions/distros of hosted VMs can still find connection points.

Hyper-V V3 and its Windows 2012 VMs also boot UEFI, rather than traditional memory-location-specific BIOS. This gave us a few fits, but works. There is the capacity to move virtual machines from host to host using compression, and where compatible hardware is available to support it, very fast transports -- 10Gigabit Ethernet, Infiniband, and other faster-than-10G Ethernet connections. The high-speed connections are crucial to VM movements among hosts in hypervisor fabrics.

We tested Microsoft's virtual network switching component, and found it easy to manipulate, although we disconnected several remote hosts by making inept choices. The instructions weren't clear to us, and we were able to crater the communications of two of our test servers with ease. The drive to our network operations center is a long one.

The SDNs inside Hyper-V V3 are more easily manipulated by System Center 2012. Microsoft includes IP Address Management/IPAM in Hyper-V, and as VMware has found, is heaven-sent for those with genuine desires to form virtualization platforms where VMs can be easily transported from host to host for either performance or isolation within a defined fabric/VM farm.

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TECH Products of the week

Our roundup of intriguing new products from companies such as Cisco and Fortinet

Product name: Mocana Mobile App Protection
Key features: Mocana’s enhanced MAP app-wrapping solution enables enterprise IT to easily add stronger security features to iOS 7 apps. It includes enhanced single sign-on and secure browser capabilities, as well as performance improvements. More info.

Product Name: Trustwave Managed Security Testing
Key features: enables businesses to schedule, manage and adjust penetration tests based on their business priorities and security needs using a cloud-based portal. More info.

Product: Verdasys Digital Guardian Connector for FireEye
Key features: Combines and correlates threat intelligence and creates rules for endpoint agents to search out potentially compromised machines; contains and blocks further infections in real-time across the network and endpoint. More info.

Product name: EnCase Analytics
Key features: Security intelligence product deriving insights from data generated by endpoint activity. Through its interactive visual interface, EnCase Analytics exposes suspicious patterns, commonalities and anomalies for rapid adjustments to identify threats. More info.

Product name: CORE Impact Pro 2013 R2
Key features: This latest version of CORE’s professional vulnerability assessment and penetration testing software allows organizations to proactively test IT infrastructure and identify exactly where and how an organization’s critical data can be breached. More info.

Product name: FortiGate-3700D
Key features: offers a high performance, high-speed, compact network firewall appliance for enterprise data centers, large service providers, cloud providers, and carriers. More info.

Product Name: IPsonar ESI
Key features: Yielding comprehensive network visibility, IPsonar ESI uses active network discovery that continuously incorporates data uncovered via passive listening techniques for real-time discovery of new connections and devices on a network. More info.

Product name: ProgrammableFlow Version 5
Key features: OpenFlow Network Fabric, including controller and portfolio of switches, scales to 200 switches per controller, supports OpenFlow 1.3 and offers network virtualization and secure multi-tenancy. More info.

Product name: Nexus 3132Q
Key features: provides Layer 2 and 3 switching of up to 2.5 terabits per second and more than 950 million packets per second. Wire-rate Layer 2 and 3 switching on all ports in a compact one-rack-unit (1RU) form factor; Mobility and Workload Isolation through hardware-based VXLAN perfect for enabling scalable, multi-tenant,cloud-based architectures; Full support for Openflow and Cisco OnePK for programmability options for SDN environments; 40-Gbps Quad Small Form-Factor Pluggable (QSFP) connectors, with 32 Enhanced QSFP ports. More info.

Product name: Nexus 3172PQ
Key features: provides Layer 2 and 3 switching up to 1.4 terabits per second and more than 950 million packets per second. Wire-rate Layer 2 and 3 switching on all ports in a compact one-rack-unit (1RU) form factor; Mobility and Workload Isolation through hardware-based VXLAN perfect for enabling scalable, multi-tenant, cloud-based architectures; Full support for Openflow and Cisco OnePK for programmability options for SDN environments; 10-Gbps Enhanced Small Form-Factor Pluggable (SFP+)-based top-of-rack switch with 48 SFP+ ports and 6 Quad SFP+ (QSFP+) ports. More info.

Product name: OutSystems Platform - Enterprise Cloud
Key features: the only PaaS available as a cloud, on-premises or hybrid solution that rapidly generates standard Java and .NET web and mobile applications with fully automated DevOps support. More info.

Product Name: Sighthound
Pricing: For use on one camera, it is free. For the Basic version (2 cameras), it is $60 annually with $12 version upgrades. For the Pro version (unlimited cameras), it is $250 annually with $50 version upgrades.

Key features: a software that works with security cameras in the home or office. It works with any IP and web camera. It downloads easily on to your computer and finds your cameras to connect within 60 seconds. The software then gives your existing cameras advanced detection/recognition capabilities. More info.

Product Name: Co3 Privacy Module
Key features: Automating data breach preparedness and response. Latest enhancements support Asia-Pacific regulations. Co3 continuously updates latest changes throughout the U.S, Canada, EU and now Asia-Pac; New Customization features streamlines configuration and management.

Product name: ePMP 1000 GPS Sync Radio and ePMP 1000 Integrated Radio
Key features: a fixed wireless access solution with GPS sync technology that operates in the 5GHz frequency band. It delivers industry-leading throughput at over 200Mbps using 2x2 MIMO-OFDM technologies. More info.

Product Name – MindArray IT Performance Manager
Key features - Newest release enhances unified monitoring of applications, server, network, and virtualization and quickly locate problem's root cause across all the layers. Now offers SLA management with real-time analytics. More info.

Product name: Privilege Guard ePO Edition 3.8
Key features: provides comprehensive security management from a single management console and architecture, simplifying implementation, management and reporting of all privileged activity on desktops and servers. More info.

Product name: HubTargeter
Key features: reaches out and grabs customers for local businesses via Twitter, combining geo-targeted search that pinpoints keywords in tweets with personalized responses that connect relevant, local businesses with new customers. More info.

Product Name: N-series Citrix Ready HDX Verified System-on-a-Chip (SoC) Thin Client
Pricing: N400 Enterprise Bundle - $159; N500 Enterprise Bundle - $229; N500w Enterprise Bundle - $279

Key Features: full support for mobility with updated security features and integrations with the latest Citrix technologies. More info.

Product name: Omnipliance Core with OmniAdapter 10G MX
Key features: provides data visibility into less demanding 10G networks and 24x7 uptime assurance. More info.

Product name: Syncsort ECX Enterprise Catalog
Key features: gathers, centralizes and catalogs information about NetApp and VMware environments, allowing users to search, report, analyze and take action on information. More info.

Product name: ScaleOut hServer V2
Pricing: The community edition is a free license and enables up to a four-server ScaleOut hServer grid and 256GB data set size. Commercial editions are available at about $1,000 per processor core for a perpetual license and $400 per processor core per year for an annual subscription.

Key features: provdes a real-time execution engine for Hadoop MapReduce applications integrated with an in-memory data grid for analysis of live data; it delivers 20x speedup in benchmark testing. More info.

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Microsoft moves closer to unifying Windows and Windows Phone

Microsoft has long planned on one store to bind them, and that is now getting closer.

Microsoft's cross-platform strategy is no secret. Much of the same code found in Windows 8.1 is also in Windows Phone 8, including the kernel. So it stands to reason that, in time, apps should be easily portable between platforms, especially WP8 and Windows RT.

Well, Microsoft is continuing that effort. The company just announced it is creating a unified developer registration experience for the two platforms. The site has nothing to do with the developer end; it handles the business side of things. The idea is to make it easier for developers who want to create apps for both Windows and Windows Phone by giving them one point of registration instead of two.

Under the new registration program, Windows Phone developers will have access to the Windows Dev Center, which handles PC and tablet sales, for no additional cost. The same works both ways, as Windows developers now have access to the Windows Phone Dev Center for no additional cost. In both cases, the developer uses the same Microsoft Account to log in on either site and has access to both Centers.

So, existing developers can now submit apps to both stores at no additional cost under one Microsoft account while new developers can register under just one account. The registration fee is a very modest $19 for an individual developer and $99 for a company account. Developers already registered for both stores will receive a code via email this month for a free one-year renewal when their existing registration is up for renewal.

The process of submitting apps will remain slightly different due to the differences in platforms, but Microsoft aims to have a single submission process as well. And of course, there is the effort to make one developer platform, so apps can be generated across the board from a single code base. But, one thing at a time.

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5 IT security horror stories (and 5 solutions)

When it comes to security, your employees may be your weakest link. While policies and training can go a long way toward helping your employees keep devices and data safe, sometimes technology is the answer.

Your business relies on the security of its networks, storage and mobile devices to protect personal information and corporate data. But often, the weakest link in a data security plan is the human element. While education and training can go a long way toward helping your employees keep devices and data safe, sometimes it's up to technology to save the day.

Jaspreet Singh, CEO and Founder of data protection and governance company Druva, outlines five of the worst data security horror stories and explains how they could have been prevented.

Problem: Mobile Device Loss
Almost 70,000 laptops, smartphones and other mobile devices are lost every year at airports, in hotel rooms, in taxis, says Singh. The loss of personal and business information can be crippling and embarrassing, and can leave your company at risk for even greater theft and data loss, Singh says.

Mobile Device Loss Solution
Obviously, you want your employees to understand the importance of keeping their devices with them at all time. But, in the event a loss or theft happens, technology can come to the rescue. With continuous synchronization and data backup, even if a device is lost or stolen, it can easily and quickly be reprovisioned on a new device. And with data loss protection (DLP) software, sensitive data and information can be wiped from the device remotely, significantly reducing the chance of a breach.

Problem: Data Theft
In a highly publicized incident, one large storage and archiving company was the victim of a massive data theft when a huge number of encrypted drives were stolen from a van transporting them to an off-site facility. Don't think it could get worse? The van was unlocked and unattended, making the theft much easier.

Data Theft Solution
The physical security of devices when in transport or in a storage facility is just as important as securing the data they contain. Make sure your off-site storage facility and the transportation method used to get your drives there are secure, and that staff is highly trained. You also should encrypt all the data and devices, which can mitigate risk in the event of a theft.

Problem: Laptop Theft
A physician at Lucile Packard Children's Hospital at Stanford University reported that his hospital-issued laptop was stolen from his car, putting the information of about 57,000 patients at risk. While the computer was password-protected, it wasn't immediately apparent what kind or how much data was on the computer.

Laptop Theft Solution
Installing eDiscovery software could have helped more easily discern that, fortunately, the information on that laptop was years out of date, and didn't contain any financial or personal identifying information. Of course, such a theft is still a concern, but could have been much worse, Singh says.

Problem: BYOD
Bring Your Own Device offers employees flexibility and freedom, but can also put confidential information and proprietary business information at risk, Singh says. If users are accessing confidential files or personal information over unprotected wireless access (or, as previously stated, lose their device) your business could be at risk.

BYOD Solution
Education is one of the first lines of defense against this sort of breach, Singh says. Make sure your employees understand the risks and, if they can help it, that they aren't supposed to access certain files or information using their devices. If a device is lost or stolen, DLP software can wipe a device and make it unusable for the thief.

Problem: Web Traffic Detour
For about 18 minutes in April 2010, about 15 percent of U.S. government Internet traffic was redirected through China, including traffic to and from the sites of the U.S. Army, Navy, Marine Corps, Air Force, the office of the Secretary of Defense, the Senate and NASA, Singh says. Though the Chinese government denied it, a major flaw was found in a government data center that could easily have been exploited to redirect traffic.

Web Traffic Detour Solution
Singh says building in restricted user access could have prevented such an incident. By incorporating a blacklist and whitelist of authorized users, network administrators can control which users, which devices, and which specific IP addresses are permitted to access specific data, applications, and computing functions, he says.

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Juniper targets key new switch directly at Cisco Nexus 6000

Based on Broadcom Trident II, QFX5100 will support dense 10/40G and Virtual Chassis for smaller fabric alternative to QFabric

Juniper Networks is expected to soon announce a new switch for top-of-rack applications that supports Broadcom's Trident II silicon for dense 10/40G Ethernet capabilities and competes directly with Cisco's Nexus 6000.

Juniper is expected to tout throughput, latency, power consumption and table entry benefits of the QFX5100 over the Nexus 6001, sources say.

Specifically, the QFX5100 switch is said by sources to include 48x1/10G + 6x40G, 96x10G + 8x40G, and 24x40G with two expansion slots for 4x40G module variations. QFX5100 is also said to have latency improvements over previous generation QFX switches, the QFX 3500 and 3600, which average sub-microsecond latencies.

[DATA CENTER DIRECTIONS: Juniper switching boss talks technology challenges, Cisco Nexus 6000]

Support for Broadcom’s new Trident II silicon, which many in the industry – including Cisco’s Insieme spin-in, Dell and Arista Networks – are building new switches on, means QFX5100 will be optimized for 10/40G and have inherent support for the VXLAN specification for VLAN scaling. Co-authored by Broadcom, VXLAN is intended to scale VLANs from 4,094 to 16 million to accommodate the exploding number of virtual machines in the virtualized data center.

Broadcom’s Trident II chip is designed to support up to 32 40G Ethernet ports and 100+ 10G ports. Ports on the QFX5100 can be configured and channelized to support up to 32x40G or 104x10G, source say.

And as expected, QFX5100 will support Virtual Chassis capabilities via Junos release 13.2X50. Up to 10 member switches can be configured into a Virtual Chassis and managed as a single switch, with increased fault tolerance and high-availability, and a flatter Layer 2 topology designed to minimize or eliminate the need for Spanning Tree and other protocols.

The capability may also allow users to configure smaller fabric “pods” without the need for a QFabric Interconnect device. Indeed, Virtual Chassis will also work on existing QFX 3500 and 3600 switches with the new Junos release but only if the switches are in standalone mode – not as nodes in a QFabric.

Sources say the Virtual Chassis capability will usher in a new Virtual Chassis Fabric (VCF) architecture from Juniper that allows a 20-node mix of QFX5100, 3500 and 3600s, and Juniper EX4300 switches to form a data center fabric without a QFabric Interconnect. As such, VCF is a fabric alternative to QFabric, they say.

The Virtual Chassis capability was expected. The pods VCF produces could be interconnected for scale with Juniper’s new EX9200 switch, Juniper Senior Vice President Jonathan Davidson said last spring.

The 48x1/10G QFX5100 will be available this quarter. The other variations will be available in the first quarter of 2014. Virtual Chassis will also be available in the first quarter of 2014.

VXLAN gateway and Cloudstack integration will be available later in 2014, sources say.

Juniper declined comment.

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