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Ransom Cartel ransomware creator sentenced to 16 years in prison
Thousands of servers can be backdoored by exploiting buggy motherboard controllers
Thousands of Internet-connected servers sold by the world’s biggest manufacturers can be remotely backdoored by exploiting critical vulnerabilities—some more than a decade old—that lurk deep inside system motherboards, according to research presented Wednesday.
Baseboard management controllers are miniature computers that are embedded into the motherboards of virtually every enterprise server. The microcontrollers, typically abbreviated as BMCs, run with their own operating system firmware, network stack, and IP address. Administrators rely on them to monitor the physical status of large fleets of servers and to perform a variety of tasks, including rebooting machines, installing updates, and even reinstalling operating systems. BMCs provide what’s known as “lights out” and “out-of-band” management because they work even when servers they’re attached to are turned off or are unresponsive.
A “pervasive, under-monitored, under-patched parallel attack surface”Researchers have warned since at least 2013 that BMCs present a golden opportunity for hackers looking for ways to gain deep and persistent access to datacenters. The chief culprit was IPMI, the protocol that allows BMCs to operate independently of servers and to perform administrative tasks. Vulnerabilities in this firmware made it possible for attackers to remotely execute malicious code on the controllers and, from there, infect the servers they manage.
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Microsoft moves to limit AI use by its employees
Until recently, it was common for companies and organizations to engage in “tokenmaxxing” — that is, maximizing their use of AI. But with AI costs going up, companies are now looking to save money, a trend underscored by a recent Microsoft decision to limit AI use by its employees.
“As we ramp up our use of GitHub Copilot to achieve our goals, we all need to be mindful of how we consume tokens,” Microsoft Executive Vice President Jay Parikh wrote in an email to the company’s employees.
Starting now, each department at Microsoft will be allocated a certain pool of tokens, with usage then adjusted up or down as needed.
The change prompted concern among some employees. “It’s very telling that a company that has invested so much in AI and subsidized so much AI inference is now advising its own employees to cut back on spending,” an anonymous Microsoft employee said in a comment to 404 Media.
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Apple’s memory crisis is a big red flag for tech
The memory crisis is getting worse for Apple, which is struggling to get enough memory chips together for its upcoming iPhone 18 Pro series smartphones. That’s according to tech journalist Tim Culpan.
As he details it, Apple and its assembly partners are still attempting to secure sufficient quantities of memory, and though they’re confident they can meet initial demand once the devices are introduced, they apparently remain concerned that wait times could rapidly extend as retail inventory evaporates.
Apple’s manufacturing process compounds the problem. The A20 processor is packaged with memory using a new TSMC process, meaning processors are reportedly piling up while manufacturers wait for memory chips. You should read Culpan’s report to get the full picture.
What’s the frequency?You don’t need to read between the lines to see the challenge. Despite demand for TSMC’s new processors, Apple seems to have been able to secure the supply it needs. But when it comes to churning out the final packaged chips memory, supply constraints have created significant obstacles to producing in quantity.
This is bad for Apple, particularly as the challenge doesn’t appear to be confined to iPhones; customers are experiencing delays getting new Macs. “Many new orders are now not arriving until September,” Bloomberg’s Mark Gurman wrote earlier this week.
It isn’t just Apple that will be impacted by the AI-driven memory drought. The scale of Apple’s orders is among the greatest in the industry, and if its product plans are feeling the pain, every other manufacturer will be feeling it as well.
Conscious uncouplingThis is certainly in tune with expectations voiced at the beginning of the year when Ranjit Atwal, senior director analyst at Gartner, warned: “This is the steepest contraction in device shipments witnessed in over a decade. Higher prices will narrow the range of devices available, prompting buyers to hold on to devices for longer, fundamentally altering upgrade cycles.”
Gartner in February predicted a 10.4% decline in global PC shipments and an 8.4% drop in smartphone shipments as a result. The analyst also predicted a 130% surge in combined memory and SSD storage prices by the end of this year, with steep product price increases to follow. Recent data from IDC, Gartner, Counterpoint, and Omdia confirm PC market declines, but only at around 4% (the estimates vary).
Today’s report from Culpan suggests we’ve not yet experienced the full extent of this decline — hinting that while the initial fall reflected price, the next impact will be defined by lack of supply. While this hurts big brands like Apple, smaller entities could be left high and dry.
When the chips are downIt is interesting to reprise Atwal’s warning in February that, “the sub-$500 entry-level PC segment will disappear by 2028,” as this seems to be what’s happening. That’s something long-time Mac users like me find particularly ironic, given it was only this year Apple briefly offered up its superbly priced $499 MacBook Neo. The industry direction we’re seeing now suggests we’ll never see that again, though the success of that device gave Apple a phenomenal 28.7% increase in sales in its just-revealed June quarter.
Despite memory supply challenges, Apple seems to be faring fairly well, with market share increasing across its business. Counterpoint data reveals that Apple has achieved an astonishing 65% share of the premium smartphone market. In part, that’s because as an existing premium brand, Apple was able to better absorb rising memory costs through higher margins and reduced promotions. Realistically, this means we can expect an overall increase in iPhone prices when the new range is announced up to $300 more, Jeff Pu, of GF Securities, recently claimed.
Building the moatOnce again, what’s sustainable but difficult for larger brands such as Apple is existential disaster for smaller players — and it’s only now a matter of time before we see some real blood. That’s particularly true in smart home and device markets, where manufacturers lack the margins to sustain higher memory prices while delivering products customers can afford. A recent Global Electronics Association report tells us 62% of electronics manufacturers are already experiencing constrained availability or extended lead times. It also tells us 82% expect rising prices, including 33% who cite a “significant increase.”
This is already being felt by consumer and business users, as networking equipment is experiencing significant shipping delays. So, while we may find ourselves waiting a month or more for an iPhone, the wait for new routers, external storage devices, and home automation systems could be even longer once available inventories disappear.
This doesn’t appear to be a short-term challenge; a recent Digitimes report warns that vendors have already sold their entire allocation of memory capacity for 2027.
Don’t even get me started on the likely impact on the military and defense markets as high-performance memory, storage, and processor supplies become constrained. Just like declining river levels in Europe, lack of memory threatens severe disruption. With so much turbulence impacting the tech economy, all we need now is for one or more of theinvestor-supported AI companies that have helped create the memory shortages to default on loan payments.
Got to keep the customer satisfiedEager to protect sales, Apple recently introduced the Apple Upgrade leasing service in the US. This should enable consumers to purchase new devices at prices more sustainable to them over time. Apple isn’t alone in taking such action, which will inevitably extend beyond America.
“OEMs are expanding financing, trade-in and buyback programs to improve affordability,” said Counterpoint’s Harshit Rastogi. “Samsung has also expanded its Galaxy Forever program to several markets to make flagship devices more accessible.”
Such schemes are all well and good, of course. Consumers will embrace them in hopes of a better tomorrow. But the tech industry is not immune to the wider constellation of existential challenges impacting economic environments.
In the end, if Apple, the industry’s biggest buyer of advanced components, is struggling to secure memory, the rest of the electronics sector is likely to face even greater challenges. For consumers, the initial impacts will be longer waits and higher prices. But the longer term consequences could be slower innovation and increased consolidation across the industry.
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