Brian King

The man described by federal authorities as the mastermind of the massive data thefts at TJX Companies Inc., Heartland Payment Systems and other retailers today pleaded guilty to charges in a 19-count indictment that include conspiracy, wire fraud and aggravated identity theft. That case was being prosecuted separately in New York but was merged with the case in Boston under a plea agreement negotiated with prosecutors a few days ago. Albert Gonzalez, 28, of Miami, also pleaded guilty to one count of conspiracy to commit wire fraud related to a data theft at Dave & Buster's restaurant chain. Gonzalez is scheduled to be sentenced Dec. 8 by U.S. District Court Judge Patti Saris in Boston.

Under the plea agreement, Gonzalez will serve between 15 and 25 years for both cases and will be fined as much as $250,000 for each of the charges. He faces a maximum of 25 years in prison for the charges in Boston and 20 years for the case in New York. Gonzalez will also forfeit more than $2.7 million in cash as well as multiple pieces of real estate and personal property, including a condominium in Miami, a BMW and several Rolex watches that he is alleged to have acquired through his ill-gotten gains. Gonzalez was arrested in Miami in 2008 along with 10 other individuals on charges relating to the thefts at TJX, Dave & Busters, BJ's Wholesale Club, OfficeMax, Boston Market, Barnes & Noble, Sports Authority, Forever 21 and DSW. In August, federal authorities in New Jersey indicted Gonzalez on charges involving breaches at Heartland Payment Systems, Hannaford, 7-Eleven Inc. and two other unnamed retailers. About $1 million of the money being forfeited was recovered from a container buried in Gonzalez' back yard, according to a statement released today by the U.S. Department of Justice. Prosecutors alleged that Gonzalez, along with two unnamed Russian conspirators, stole more than 130 million credit and debit cards from the five retailers.

It is not clear if Gonzalez was the leader of a worldwide criminal gang or merely acting at the behest of powerful crime gangs based in Russia and East Europe. Today's plea brings to an end, for the moment, to the career of a hacker who federal authorities say has been the mastermind of the biggest data thefts in U.S. history. But his actions, which his lawyer has claimed stemmed from a computer addiction , have caused millions of dollars in losses to his victims. In addition, some of the companies that were Gonzalez's victims have had to pay fines to Visa and the other card brands for being noncompliant with the credit card industry's Payment Card Industry Data Security Standard and to spend more money to revamp their security controls. TJX has publicly estimated that costs to the company from the data breach will touch $200 million . Heartland has already spent or set aside more than $12 million and is facing numerous lawsuits from affected institutions.

Aardvark has taken a different tack with search. And now the people behind Aardvark are bringing that same approach to the iPhone and iPod touch. The online service figures it's sometimes more productive to ask a question of an actual person-usually someone from within your social network-rather than brave the vagaries of a search engine and its sometimes irrelevant answers.

Aardvark Mobile actually arrived in the App Store nearly a week ago. Aardvark Mobile tackles the same problem as the Aardvark Web site-dealing with subjective searches where two people might type in the same keywords but be searching for two completely different things. "Search engines by design struggle with these types of queries," Aardvark CEO Max Ventilla said. But developer Vark.com waited until Tuesday to take the wraps off the mobile version of its social question-and-answer service. What Aardvark does is tap into your social networks and contacts on Facebook, Twitter, Gmail, and elsewhere to track down answers to questions that might otherwise flummox a search engine-things like "Where's a good place to eat in this neighborhood?" or "Where should I stay when I visit London?" With Aadvark's Web service, you'd send a message through your IM client to Aardvark; the service then figures out who in your network (and in their extended network) might be able to answer the question and asks them on your behalf. The majority of questions are answered in less than five minutes. Ventilla says that 90 percent of the questions asked via Aardvark get answered.

The iPhone version of Aardvark works much the same way. The service pings people for an answer, and sends you a push notification when there's a reply. Instead of an IM, you type a message directly into the app, tag it with the appropriate categories, and send it off to Aardvark. In previewing the app, I asked a question about affordable hotels in Central London-two responses came back within about three minutes from other Aardvark users. If you shake your mobile device when you're on the Answer tab, Aardvark Mobile looks up any unanswered questions that you may be able to provide a response for (while also producing a very alarming aardvark-like noise). "We think Aardvark is particularly well-suited to mobile, and especially the iPhone given how rich that platform is to develop for," Ventilla said.

In addition to push notifications, Aardvark Mobile also taps into the iPhone's built-in location features to automatically detect your location-a feature that can help when you're asking about local hotspots. You don't have to already be using Aardvark's online service to take advantage of the mobile app. Aardvark Mobile requires the iPhone OS 3.0. The free Aardvark Mobile app lets you set up a profile on your iPhone or iPod touch; Facebook Connect integration helps you instantly build up a network of friends who are also using the service.

Some industry observers still like to kick dents in the mainframe saying it's not the corporate platform of the future but the Big Iron seemingly takes the licks and keeps on ticking. Only IBM mainframe users were included in the survey population, IDC noted. Case in point: According to a study out today of 300 end users by researchers at IDC nearly one-half of said they plan to increase annual spending on mainframe hardware and software over the next five years. Network World Extra: How to really bury a mainframe Many mainframe users reported that they can plan another wave of investments in the System z platform over the next 2–5 years, citing the system's high availability, reliability, and security for mission-critical applications as major drivers, IDC stated. "Customers continue to collect dividends on their System z investments, which makes future investments much more palatable, even in difficult economic times," said Tim Grieser, program vice president, Enterprise System Management Software in a release.

IBM has engaged in some price cutting to make some of these processors more palatable though. The study says IBM's strategy of building specialty processors for the mainframe, such as the Integrated Facility for Linux (IFL) System z Integrated Information Processor (zIIP) for ERP and CRM transactions and z Application Assist Processor (zAAP) processors for Java and XML transactions are key to ongoing success of the platform. According to a Network World article IBM has cut in half prices for some specialty Linux processors. Another source said the price changed from $90,000 to $47,500 for IFLs running on the System z Business Class mainframe. IBM acknowledged "new pricing" for the IFL processors, but did not offer specific numbers.

And IBM's mainframes haven't been immune to the economic downturn. Still all is by no means rosy in mainframeland. This summer IBM reported that System z mainframe server revenue decreased 39% year-over-year in the second quarter, while overall company revenue declined 13%. IDC however says the mainframe will benefit down the road from these new processors which will require additional mainframe-related database and storage facilities to handle new workloads. Another recent study raised an ever-increasing issue – retiring mainframers. However, while today individuals still train to become commercial pilots, the number of IT professionals going into the mainframe arena is fast disappearing. One study by system vendor Shoden found that 96% of respondents working for financial businesses said that they are concerned to some degree that with cloud computing and SaaS they will not be able to retain the necessary skills to operate and maintain legacy environments such as IBM mainframe or AS/400. The study said in the manufacturing sector, 88% of IT decision makers admitting to being concerned, while across all the markets polled, the average comes in at a staggering 83%. The retail, distribution and transport sectors come in just a little lower at 80%. The study went on to state that mainframe technology is as old as the Boeing 747 and, like the iconic aircraft, it is still the default workhorse for many of its original adopters.

A similar study funded by CA found that Financial Services organizations are leading the drive to tackle the shortage of mainframe skills in Europe where 60% of financial service firms use the mainframe for administering their critical data. In the CA study it found 57% of financial services organizations said an easy-to-use Web-enabled GUI would help close the skills gap.

Looks like Apple's taking some of the criticisms of its App Store to heart. Broken down into a handful of different categories like Apps for Cooks and Apps for Music, the collections consist of apps related to a specific topic. On Tuesday, the company unveiled a new section of its Web site, Apps for Everything. There are currently 12 different collections, each featuring between eight and 24 applications along with tips for using the built-in features of your iPhone.

The section also features lists of the top ten paid and free lists for the Travel category in the App Store. You might be traveling, for example, in which case Apple recommends apps like Frommer's travel guides or Currency for dealing with conversion rates and suggests tips such as using the Maps app to bookmark locations and remembering to turn off data roaming to save money. With more than 85,000 applications in the App Store, one common complaint is that it's gotten harder and harder to find quality apps. We don't yet know whether Apple will be adding more categories to its Web site in the future, or changing the composition of its existing collections. Apple's Staff Picks section (also available via the iPhone section of its Web site) is well known to draw attention to particular applications and these new Apps for Everything collections seems to be an extension of that.

Of course, we'd be remiss if we didn't mention that Apple's new venture resembles-uncannily, some might say-our own App Guide essentials collections to which we regularly add new content assembled by the Macworld editorial staff. But at least we can all agree that it needs to be easier for consumers to find the best apps. [via The Loop]

IBM has launched LotusLive iNotes, an on-demand e-mail, calendaring and contact management system meant to compete with the likes of Gmail and Microsoft Exchange, the company said Friday. IBM is aiming the software at large enterprises that want to migrate an on-premise e-mail system to SaaS (software as a service), particularly for users who aren't tied to a desk, such as retail workers. Pricing starts at US$3 per user per month, undercutting Google Apps Premier Edition, which costs $50 per user per year.

It is also hoping to win business from smaller companies interested in on-demand software but with concerns about security and service outages, such as those suffered by Gmail in recent months. While alluding to Google's service outages, Poulley acknowledged that no company can guarantee 100 percent uptime for on-demand applications. LotusLive iNotes is based on technology IBM purchased from the Hong Kong company Outblaze. "What we brought to Outblaze and to the marketplace is what you'd expect from IBM in terms of security, reliability and privacy," said Sean Poulley, vice president of online collaboration. But IBM has a long-standing track record of running "the world's mission-critical systems," he said. Overall, the main point of interest in IBM's announcement is price, said Gartner analyst Matt Cain. "Outblaze always sold low-cost mailboxes and that's what this is," he said. "Google's long been in it, Microsoft's long been in it.

IBM will also have an opportunity to win customers from Microsoft who aren't ready to migrate to the upcoming Exchange 2010 release, given the headaches and investments involved, Poulley said. Now IBM's in it." However, that's not to say IBM's brand on the software isn't of some value, Cain added. ."From an enterprise perspective, you'd rather buy e-mail from IBM than a company called Outblaze." It's unlikely that IBM's pricing strategy will cause competitors to lower fees for their offerings, according to Cain. For one thing, Microsoft already has a $2 per month Exchange Online option called "Deskless Worker," Cain noted.