Feeds

China ponders ban on IBM servers

Report says Middle Kingdom worried Big Blue boxen bring big backdoors

Website security in corporate America

The dispute between China and the USA over backdoor-riddled information technology equipment has just heated up, with Bloomberg reporting Chinese authorities are wondering whether the time has come for local banks to ditch their IBM servers.

The newswire's report mentions “high-end” servers and suggests Chinese authorities “are reviewing whether Chinese commercial banks’ reliance on the IBM servers compromises the country’s financial security.”

As is the often the case with Chinese government policies, this one needs some deep consideration, not least because if banks are using “high-end” servers that suggests either POWER systems or mainframes are in China's sights. Banking applications written for either platform are generally very tightly coupled to hardware. Ordering Chinese users to find alternatives – either with new hardware or by porting software to another operating system - would not be something most could accomplish in a hurry.

China surely knows this and that any order to change would be futile for at least a few months. Such an order would also telegraph to the USA or other powers the need to find another attack vector.

Might China therefore be taking aim at an American icon? IBM's hardware division is not in rude health. Even the mere suggestion Big Blue is in cahoots with US authorities won't make it any easier to shift boxes, making life harder for IBM at a time it needs to be fighting off spookware allegations like it needs a hole in the head.

Yet the mere suggestion China is interested in kicking IBM when it is down is useful, as a muscle-flexing exercise in which Beijing tells Washington it can hurt US industry with the stroke of a pen. And what balanced pension fund wouldn't have some IBM stock in its portfolio?

Bloomberg says the review of IBM kit is ongoing and will eventually land on the desk of president Xi Jinping. Will he twist the knife? Or will president Obama blink? Stay tuned for another exciting episode of “The Snowden Fallout”, here sometime soon on The Vulture Channel. ®

Protecting users from Firesheep and other Sidejacking attacks with SSL

More from The Register

next story
Early result from Scots indyref vote? NAW, Jimmy - it's a SCAM
Anyone claiming to know before tomorrow is telling porkies
Home Depot: 56 million bank cards pwned by malware in our tills
That's about 50 per cent bigger than the Target tills mega-hack
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
UK.gov lobs another fistful of change at SME infosec nightmares
Senior Lib Dem in 'trying to be relevant' shocker. It's only taxpayers' money, after all
Critical Adobe Reader and Acrobat patches FINALLY make it out
Eight vulns healed, including XSS and DoS paths
Spies would need SUPER POWERS to tap undersea cables
Why mess with armoured 10kV cables when land-based, and legal, snoop tools are easier?
TOR users become FBI's No.1 hacking target after legal power grab
Be afeared, me hearties, these scoundrels be spying our signals
Blood-crazed Microsoft axes Trustworthy Computing Group
Security be not a dirty word, me Satya. But crevice, bigod...
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.