NetSuds December 2002 Monthly Report

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        1.0 Heard on the Net
        2.0 Jobs in the "com and .com" Market
        3.0 NetSuds and MedicalSuds Calendars - FREE POSTINGS
        4.0 Tidbits
               4.1    NetSuds on Tour - Larry's List
               4.2    Email Advertising
               4.3    techies.com publishes State of the Techie Report
               4.4    Minnesota White Collar Unemployment Numbers
               4.5    Free Events: A Thing of the Past?
               4.6    Wisconsin Life Sciences Venture Conference Draws 500+
               4.7    Do Not Call! - Do Not Email? - Do Not Mail?
               4.8    Community Portals
               4.9    Political Email Advertising
               4.10 802.11 Security
               4.11 URLs For Sale
               4.12 FCC Seeks Comment on AT&T's IP Telephony Petition
                   4.13 ADC CEO At It Again
               4.14 Minnesota PUC Fails Minnesota
        5.0  Calendar of Events
        6.0  US VoIP Industry Under Possible Attack from the ILECs
        7.0 NetSuds CEO Roundtable - Starting January 2003
        8.0 Watch out for Wi-Fi: The Goldman Sachs report on Wi-Fi
        9.0 Firewalls: Your First Line of Defense
       10.0 Network like you mean it!
       11.0 Guest Writers for this Report

1.0 Heard on the Net

1.1 People on the Move:

Please email: people@netsuds.com to report a change in your job status if you are moving from or to a company in the "com or .com" space. Include your new work contact information, not just your personal contact information. We do not accept press release changes from third parties. We must hear directly from the person who is 'on the move'.

2.0 Jobs in the "com and .com" Market

Please email: jobs@netsuds.com to report job openings in the "com and .com" Market. In the body of the message, give the name of the company and a URL link to the job postings.

The web calendars for NetSuds and MedicalSuds continue to grow in popularity as more and more people use them for the definitive place to find high-tech events in the Twin Cities. The calendars are free to use for both tracking events and for posting your own events. To post events, login as "guest" with a password of "guest". The Calendars are accessed at

Non-Minnesota companies conducting events in Minnesota will not be allowed to post events for free. Events posted to either of these calendars are not immediately available for viewing. All events will be marked "pending" and will be reviewed for content prior to public viewing.

4.3 techies.com Publishes State of the Techie Report

techies.com has publishied a Report on the State of the Techie and made the report available through NetSuds. To view the report, click here.

4.4 Minnesota White Collar Unemployment Numbers

The Minnesota Department of Employment Security published the following report on white collar unemployment on October 1, 2002. Thanks to NetSudser Brad Canham for making this available. Contact Brad at 952.346.4006 or Brad.Canham@state.mn.us.

http://www.netsuds.com/docs/mdes.pdf

4.5 Free Events: A Thing of the Past?

For the first 2 years of NetSuds existence, we were able to host a quarterly networking event which was free to attendees. NetSuds would enjoy returning to this scenario but can't until the tech marketing budgets improve and we can host the events based solely on sponsorships.

For many, the need to market and network at low cost is essential. That's why NetSuds has tried to keep the prices of events low in relation to other events in the Twin Cities. It's also why we try to provide for some compelling content at our events.

We've also noticed that with so many "voices" (sponsors) silent in the marketplace right now, there is an incredible opportunity to get your message heard. Dell Computer has used this time very wisely (on TV) to grab market share. Intel seems to be doing the same.

4.6 Wisconsin Life Sciences Venture Conference Draws 500+

In what should be an encouraging sign for entrepreneurs and venture capitalists, over 500 attendees kicked off the November 6 Conference. Presentations were made by 13 life sciences companies from Wisconsin and three other States. Other panel discussions and workshops were conducted as part of the 1-day conference.

4.7 Do Not Call! - Do Not Email? - Do Not Mail?

The first day of Minnesota's "Do Not Call" registration resulted in nearly 10% of the State's 2.2 million residential phone customers signing up. How long before some will suggest a "Do Not Email" registration or a "Do Not Mail" registration? At least in the Do Not Call issue, there are known telemarketing firms which can be regulated. The analogous situation for email and mail may not be as clear.

4.8 Community Portals

Community portals, I predict, will be a coming "thing" in the use of the Internet. The best things on the Internet to date have been email (community) and the Web. Before the web, there was USENET and bulletin boards. Early in November, a local real estate agent sent a postcard to every resident in our community around Lake Susan in Chanhassen announcing a community portal - www.lakesusannews.com - which will create a catalyst for commerce; for him and others. In this type of market, I believe the first-to-market will succeed wildly and only be supplanted by a much better technical solution with heavier advertising.

I was one of the first to place a free ad on the portal. Content-poor right now, the portal has key elements built-in for "community" when the community arrives. It will be fascinating to watch and report on.

Portals are nothing new but have been reserved for deep pockets using expensive content management systems; off-the-shelf six and seven figure shelf items or similarly-priced custom developments.

Imagine what the Star-Tribune website and content management system cost and compare it to the very useful Larry's List portal - www.larryslist.com. I imagine the cost factor was 10,000:1.

This was an email I received from the owner of the Lake Susan News portal:

Hi Matt,

Thanks for your response and addition to our new web site. Yes, I did send postcards to everyone on both sides of the lake, basically from 101 to 17. I will also be putting up signs at the entrances to our neighborhoods in the next couple of days. I think what is really going to help, and benefit all of us, is by word of mouth. Please let everyone you know about this great opportunity. The more input from neighbors, the better the site will be. In a couple of weeks, I'll start letting people know about a contest for the best decorated house over the coming holidays, as well as a spot for kids to email letters to Santa. Again, I appreciate your input, John, Executive Associate, CENTURY21, 612-385-5016, john@johnpsanders.com

4.9 Political Email Advertising

Fox News Political Analyst Dick Morris reported on November 6 that Arkansas Governor Mike Huckabee essentially won his November 5, 2002 because of the new political super missile - email campaigns. According to Morris, Huckabee bought 550,000 opt-in email addresses and sent 3 emails in the remaining week of the campaign to each person. Thirty percent of each email campaign emails were "opened". Overall, 80% of the people opened at least one email. After the first email campaign, his poll numbers jumped 5% overnight. The second and third campaigns; focusing on refuting charges made about him by his opponent and outlining his vision for the future, brought his poll numbers up 2-3% collectively. Huckabee won by 6%.

The key to effective messaging is personalization; which is being applied in various ways. Voter ID is a standard tool for political consultants and parties. Morris didn't divulge where the 550,000 Arkansas email addresses came from but the implication was that Republican-leaning organizations and special interest groups were a likely target. It would also not be a surprise to tailor candidate messages based on the demographics of the email list. A message to the NRA of Arkansas would be different than the message to the ACLU.

4.10 802.11 Security

From NetSudser Jay Johnson, VP of Sales, AirDefense, 763.416.9304, jjohnson@airdefense.net

http://www.netsuds.com/docs/wlansecurity.pdf

4.11 URLs For Sale

If you would like to list your URLs for sale, email me at matt@netsuds.com.

4.12 FCC Seeks Comment on AT&T's IP Telephony Petition

from Jeff Pulver, jeff@pulver.com, and the November 19, 2002 pulver Report - www.pulver.com

The FCC is looking for comments on AT&T's Petition for a Declaratory ruling that AT&T's Phone-To-Phone IP Telephony Services are exempt from Access charges. Comments are due: 12/18/2002. Reply comments are due: 1/7/2003. for more info:

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-3184A1.doc

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-3184A1.pdf

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-3184A1.txt

4.13 ADC CEO At It Again

ADC CEO Rick Roscitt, and many other tech equipment vendor CEOs, is advocating for a relaxation of FCC rules regarding ILEC competition. I won't go in to this issue in depth here save to say that his recent attempt is akin to the failed national broadband policy he was pushing a few months ago. Both attempts are meant to clear the way for ILECs to compete more unfairly in the sector against CLECs and other competitors such as ISPs and ICPs (integrated communications providers). Unfortunately, FCC Chairman Powell may be sympathetic to this overture. The equipment vendors are looking for a way to rescue their sector in the short term with a blind eye towards the long term. The problem is the ILECs, their failed business plans and their anticompetitive practices. CEOs like Rick Roscitt are looking for a way for ILECs to start buying again. Corporate subsidies and unfair competition may spur this on ... but at what cost.

4.14 Minnesota PUC Fails Minnesota

The Minnesota PUC recently allowed Qwest to "sentence" itself in a ruling that gives the common understanding of the word 'cowardice' a noble meaning. Ironically, it was reported that the PUC was considering banning Qwest from operating in Minnesota, a move that would have rippled mightily in every ILEC boardroom in the country. So, rather than hand down a death sentence to Qwest, their sentence was 'time served' and a small fine. Somewhere in-between these two extremes lies the correct solution; physical separation of the ILECs assets - and business separation - between local loop and everything else.

ILECs are under 2 mighty forces which will weigh on them more heavily in the coming years; the advent of the cell phone as the primary line and the advent of voice over cable as the primary line. Residential POTS continues to shrink as these two forces make inroads. The PUCs of the country are ill-equipped to factor in these market forces.

You can also try our new online calendar by clicking here for NetSuds and here for MedicalSuds.

There is an effort underway to study how VoIP uses telephone-numbering resources. The underlying theme is that this could lead to, exhaust and impact the future availability of the North American Numbering Plan (NANP). There are two coordinated activities just getting underway. The first is at the FCC's North American Numbering Council (NANC) and the second is at the Industry Numbering Committee (INC). The NANC is a Federal Advisory Committee that advises the FCC on numbering policy, as well as provide oversight for NANP administration, Local Number Portability, etc. The NANC received a report entitled "VoIP Numbering Issues" prepared by BellSouth, Qwest, and Verizon. This report can be found at ( http://www.nanc-chair.org/docs/Nov/Nov02_VoIP_White_Paper.doc ) and will be discussed at the NANC's November meeting taking place in Washington DC. It appears that the FCC and likely State Regulators (who are actively involved in the NANC) are interested in this issue, which could ultimately affect numbering assignment policy.

In addition, BellSouth and Verizon have submitted a request to the Industry Numbering Committee (INC) to begin studying VoIP's impact on NANP number exhaust. The INC is responsible for writing industry numbering assignment guidelines, which determine when numbers are assigned and to whom they are assigned. The INC documents can be found at: ( http://www.atis.org/atis/clc/inc/inchom.htm ). The INC has created a special workshop to begin its study with the intention of producing a "technical experts" report on VoIP/PSTN telephone numbering impacts. This report will not only attempt to set numbering policy with regard to VoIP but will also be used in the regulatory arena as proof positive that VoIP needs to have additional oversight to control its impact on current PSTN operations.

NetSuds is initiating a CEO Roundtable. If you are tech or medtech CEO, you can attend one of our 3 free initiation sessions in January 2003. Contact matt.noah@netsuds.com if you wish to investigate this opportunity. A synopsis of the CEO Roundtable can be found at www.netsuds.com/ceo/ It is repeated here as well.

Membership Only CEOs of tech and medtech companies are allowed to join the NetSuds CEO Roundtable. If you are a VP, CxO or President, you are not welcome unless you also hold the CEO title. Perhaps we will start a CFO, CTO or COO Roundtable but until then, we are only interested in the top dog, the CEO. If you are interested in becoming a member, contact matt.noah@netsuds.com. Membership is not automatic. There must be an available spot open in the roundtable. You must have employees. Your company must be incorporated. Your company must be a tech (communications, IT, Internet) or medtech (medtech, biotech, life sciences) company. You must pay a yearly fee in advance. You may not send substitutes to the Roundtable.

Roles Unlike the days of knights, kings and Camelot, there is no king of the NetSuds CEO Roundtable; only a facilitator; Matt Noah, CEO of NetSuds.com, Inc. Knights are replaced by CEOs and the table won't be quite round.

Schedule The Roundtable will meet 10 times per calendar year. Exact dates are not decided upon at this time. Each meeting will last between 1 and 2 hours starting at 7 am. A facility convenient to the majority of Roundtable members will be chosen. Breakfast will be served.

Purpose CEOs need resources to assist them in executing their duties and leading their companies. Boards of Directors and upper management are not always the best or most independent resources upon which to draw. The CEO Roundtable exists to provide CEOs with an independent resource of wisdom and shared experience. Your key 'take-aways' from the Roundtable will be accelerated learning - so as to avoid common and uncommon pitfalls -, an expanded network of advisors and colleagues and tools to enhance the productivity and value of your enterprise.

Content First, networking among the CEO members of a Roundtable is the best and richest content. Second, the Roundtable facilitator will schedule subject matter experts of interest to the CEOs. Examples include intellectual property, branding, sales, engineering, marketing, finance, compensation, human resources, M&A, etc.

Format Meetings will consist primarily of 2 elements. First, "content" will be presented and discussed. Second, "discussion" of common problems and solutions will take place. The facilitator will lead both elements or assign elements to certain CEOs.

Confidentiality Roundtable meetings are completely confidential. Nothing said in a roundtable discussion, short of illegal activity, leaves the meeting. This allows each CEO to feel comfortable discussing issues and subjects he may not feel comfortable speaking about with others.

Firewalls are important. Just look up 'firewall' in an Internet search engine. One Google search, for instance, showed about 4,240,000 references. "Firewalls" are usually mentioned in the same breath as "network security," but most people do not understand what a firewall is, or its role in network security.

The precise origin of the term firewall is long lost, but it probably originated in the mid- 1800s to describe special fire-resistant walls used to section off warehouses and slow the spread of fires. Firewalls exist today in airplanes, cars, ships, and networks. In network security a firewall is a system designed to electronically separate "us" (our employees, and perhaps our suppliers and customers) from "them" (hackers, spies and others who would misuse our computer resources or information).

Specifically, a firewall is software (and sometimes hardware) that acts as an electronic guard post and enforces a set of rules regarding which individuals and/or programs may access your system. The instructions may be as simple as "let Pat in if the password is correct.” Or, they may be very sophisticated, controlling the complex protocols that run the network, the specific requests made of systems or their IP addresses, or a mixture of these and other factors. Combinations of events and their order can be evaluated over time by special firewalls called Intrusion Detection Systems.

If you are connected to the Internet or if you are connected to a private network that is in turn connected to the Internet, you need a firewall. Basically, everyone online today should use a firewall.

In the case of a single PC, or perhaps two or three PCs at a single site connected to the Internet, you may run a firewall program in the PC connected to the network or at the Internet Service Provider. Running the program in your PC increases your control, but also increases your responsibility for managing the firewall and keeping it updated. Running it in the ISP reduces your management burden, but also reduces your freedom in software choice and customization.

In the case of multiple PCs at a single site on a Local Area Network (LAN) with a T1/E1, DSL, cable modem or other high speed Internet connection, the firewall software may need to run in a specially designed computer, also called a firewall. This arrangement allows multiple PCs to share the firewall and its costs. Firewall hardware systems are usually a bad “do it yourself” project, and should be managed and monitored by a third party due to the complexity of firewall installation and operation and the importance of doing the job right the first time.

ZoneAlarm is a popular choice for individual PCs; both free and non-free versions are available from www.zonelabs.com. Visit Gibson Research Corporation (http://grc.com) for a free test of your individual firewall.

CheckPoint is the dominant vendor for standalone firewalls. Its Firewall-1 software runs on a wide variety of hardware platforms. At the high end are hardware-based systems from Cisco, SonicWall and NetScreen, for example. But there are dozens of other vendors of firewalls, including intrusion detection systems, each with particular strengths.

Software firewalls can be downloaded over the Internet from several reputable sources or purchased anywhere you buy computer software. Hardware firewalls can be purchased where you buy your computer network equipment. ISPs are a good source for hardware and software firewalls that have been tested and certified. Hardware firewalls and sophisticated Intrusion Detection Systems for large organizations can be procured from specialized network security companies.

Myth: I can set up my firewall and leave it alone. No, as attackers get more sophisticated firewalls must be updated, often on a daily basis, to effectively protect against new attacks.

Myth: A firewall is all the security protection I need. Not so. Virus scanners, a good organizational security policy, user awareness and diligence, and periodic audits are also critical to overall network security.

Myth: Firewalls are too expensive. Not true. Highly capable firewall software with commercial support and regular updates is available for much less than the cost of a cup of coffee each day, an investment worth making for any business or individual.

If you do not already have a firewall, or if you haven't updated and upgraded your firewall in a while, put this on the top of your network security “to do” list. Establish your first line of network defense: install or maintain a firewall, and be sure that you, or a reputable outside firm, keep your firewall protection current.

This column is an excerpt from an upcoming book by James P. Cavanagh, Don Flanagan and James Mecsics entitled Threats & Vulnerabilities: Security and Your Business. Don, Jim and Jim are pre-publishing condensed chapter excerpts as a series of management-focused free security white papers. You can retrieve the free security white papers from:

by NetSudser Jennifer Zick, President of Web Services at Reside. Jennifer can be reached at 612-670-0772 or via email at jzick@resideware.com.

I admit it. I’m a networking junkie. And not the kind of networking that involves hardware and software. I’m talking about real, live, interactive, personal networking. You know – the old-fashioned meet, chitchat, exchange cards approach.

Why do I do it? Beside the fact that I’m an extrovert, and live for social interaction, networking also proves invaluable to my business. The more I network, the more I find that the old cliché is true: It’s not about what you know, but who you know! Of course, you do have to be competent in your business to succeed in the long run, but if you don’t know the right people – or the right people don’t know you - that business know-how doesn’t get you very far!

At every networking event I attend, someone inevitably says, “I see you everywhere I go!” While I’m not actually everywhere, when I do network, I employ very specific tactics to make sure I’m effectively using my time and energy. And since my strategies seem to be working, I’ve decided to let you in on a few of my most effective networking moves.

The Twin Cities are ripe with networking opportunities! But not all of them will suit your business goals, calendar, or personal style. Be deliberate in selecting which events will produce the highest return on your investment of time and money. Start by asking yourself: Who do I want to meet? Prospective clients? Partners? Vendors? Then: Where do these people network?

I make a point of attending networking events by myself. As much as I enjoy the company of my friends and co-workers, my networking time is focused on meeting new people and discovering new opportunities. If I carpool to an event, and my ride decides to leave early, I may miss out on a great opportunity. Worse yet, when I attend with colleagues, I risk becoming less approachable to others.

The best way to squelch your chances of meeting new people is to never leave the presence of those people you already know. Go ahead – break out of your comfort zone and spend an evening flying solo! Your networking time will become much more productive, and you’ll meet some great people!

This is perhaps my favorite networking strategy! When I first arrive at an event, I take some time to meander around the room, checking out nametags, and making a mental list of who I’d like to meet during the event. Then, I scope out those people I already know. Later, when someone I know is in a conversation with someone I’d like to meet, I approach my contact to say hello. I am able to reconnect with existing contacts, while making new contacts at the same time. With this strategy, I easily double my contacts at each event!

It seems obvious: When you go out networking, bring plenty of business cards! And don’t hesitate to give one to every new contact you make. Even if that person is not a lead for you now, they may know someone who is. Or perhaps six months from now, they will find themselves in need of your exact product or service. People are much more apt to remember your name and your company’s name if they have seen it in writing. So, don’t miss your chance to build brand awareness by leaving them with tangible evidence of your meeting.

On the flip side, be sure to get a card from each new contact you make. And once you have their card…

What good is a business card if it sits on your desk collecting dust? I once had a client whose networking skills were top-notch. He could work a crowd like no one else I know, and pocket several leads at each event. In one visit to his office, he showed me the many boxes of business cards gathered over the past several years – few of which had ever made it into his database and onto his call list – now, most of them obsolete. He had never been good at the follow-through, he admitted. And now his business was struggling.

Attending the networking event is only the first step. It’s what you do with the information you gather that really counts. So don’t let new opportunities get away from you! Create a process for follow up, and then stick to it. At the very least, enter the information into your database, and send a brief note or email to say “Nice to meet you”. Even a small follow-up gesture is better than none at all.

Everyone has their own level of comfort when it comes to extending themselves in a crowd of strangers. If you have found networking to be hard work in the past, you may want to consider a personal reward program to make your “work” more gratifying. Recently, a contact of mine shared her tactics for self-motivation on the networking scene: “I pay myself ten dollars for every new business card I get. Then I spend the money on me…new clothes, a trip to the spa. Fun things.” This extra motivation is doing the trick. Not only is she building her contact base, she’s also having more fun in the process.

Well, there you have it – Jennifer’s top strategies for successful networking! It’s certainly not rocket science, but it works. Now I really must wrap up. I’m on my way to another networking event, and this one has great hors d’oeuvres, so I don’t want to be late!

Jennifer Zick is the President of Web Services at Reside, LLC – a technology consulting group based in Minneapolis, specializing in corporate web development and contact management consulting and implementation (www.reside.biz). Jennifer can be reached at 612-670-0772 or via email at jzick@resideware.com.

11.0 Guest Writers for This Report

I have opened up the Monthly NetSuds Report to guest writers. If you have a passion for a topic, and you can write (at least no worse than me), send an email to me matt@netsuds.com. You can even send copies of your work. It needs to be on "com and .com" topics and can include entrepreneur/investor activities. Good information from our service providers and vendors is also welcome so long as it is not a "commercial" for any one company or individual.

If you are aware of others who would like to receive the NetSuds Report, ask them to visit http://www.covc.com/mail.htm to subscribe or unsubscribe.

Please send your comments and feedback regarding this issue of the NetSuds Report to matt@netsuds.com.

Matt Noah

980 Lake Susan Hills Drive
Chanhassen, MN 55317

612.279.2154
fax: 425.795.2019
matt@netsuds.com

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