OT?: Report: Web Hacks To Cost $1.2 Billiongreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Report: Web Hacks To Cost $1.2 Billion
Losses related to this week's distributed denial-of-service attacks that temporarily shut down several of the most popular Web sites could total more than $1.2 billion, according to a report from the Yankee Group.
In the report, the Yankee Group asserts that the attacks resulted in capitalization losses that exceeded $1 billion on the days of the attacks and that revenue loss in both sales and advertising dollars is expected to exceed $100 million.
The attacks, which hit Yahoo, CNN.com, eBay, Buy.com, E-Trade, Amazon.com, and others, caused service disruptions that ranged from two hours and 45 minutes to five hours in duration. The report maintains that the affected companies and their Internet peers will spend an additional $100 million to $200 million on security infrastructure upgrades. The resulting damage to brand image, partnership, and future customers will result in further impact on all the companies, the report states.
The report calls for Web sites to make use of security-assessment technologies to identify and patch the holes and vulnerabilities in their systems to prevent such denial-of-service attacks. The Yankee Group predicts that Internet security breaches will get even worse, as attacks could be launched from any of the millions of homes with always-on cable and digital subscriber line connections. Matthew G. Nelson
-- Carl Jenkins (Somewherepress@aol.com), February 14, 2000
1.2B for a couple of hours downtime? They must use the same bookeepers as the movie studios do.
-- me-- (email@example.com), February 14, 2000.
Note that the bulk of that is "capitalization losses", i.e., their stock prices dropped. Are they actually saying that having one's momentum-driven stock drop to a more reasonable P/E ratio (perhaps even less that three digits) is now classed as "damage"? Wow. Can they therefore sue for damages anyone who sells their stock, or buys Puts, or talks it down in a chatroom?
Listen. Shhhhh... I hear lawyers scurrying about, rubbing their feelers, errrr, hands together in anticipation. 8-}
That $1.2B number made the article a bit more "sexy" (and earned Yankee Group some valuable ink), but it seems a bit of a reach to group loss of market cap with the actual costs from the attack.
-- DeeEmBee (firstname.lastname@example.org), February 14, 2000.