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Thu, Mar 11, 2010 - 12:31 AM EST  —  AAPL: 224.84 (+1.82, +0.82%)  |  NASDAQ: 2358.95 (+18.27, +0.78%)

The Microsoft Tax: Conficker’s estimated economic cost: $9.1 billion
Friday, April 24, 2009 - 02:21 PM EST

"The Cyber Secure Institute claims that based on their previous studies into the average cost of such malware attacks, the economic loss due to the Conficker worm could be as high as $9.1 billion," Dancho Danchev reports for ZDNet.

"In the past, there have been numerous attempts to estimate the cost of malware, from mi2g’s $157 billion and $192 billion worldwide loss in 2004 due to malware infections, followed by Computer Economics study stating that In 2006, direct damages fell to $13.3 billion, from $14.2 billion in 2005, and $17.5 billion in 2004. The huge difference of the estimates is due to the different variables taken into consideration by the two companies," Danchev reports.

"In a perfect world all affected parties would be sharing information on the actual infection rate and the costs due to the worm’s infection, thereby confirming that their enterprises have been compromised and potentially ruining business relations for the sake of contributing to the quality of such global studies," Danchev reports. "In the real world, a Conficker infected international company would try to stay beneath the radar if it can, just as the average Internet user would continue getting exploited through one/two years old client side vulnerabilities, a paradox that’s driving cybercrime globally."

Full article here.

MacDailyNews Take: US$9.1 billion would buy the Laurens, Giampaolos, Lisas, and Jacksons, not to mention the IT doofuses of the world, at full retail no less:
• 2,758,411 Mac Pros (8-Core, $3299); or
• 3,251,161 MacBook Pros (17-inch, $2799); or
• 3,641,456 Mac Pros (Quad-Core, $2499); or
• 4,552,276 MacBook Pros (15-inch, $1999); or
• 5,058,365 MacBook Airs ($1799); or
• 6,070,713 iMacs (24-inch, $1499); or
• 7,005,388 MacBooks (aluminum unibody, $1299); or
• 7,589,658 iMacs (20-inch, $1199); or
• 9,109,109 MacBooks (white polycarbonate, $999); or
• 15,191,986 Mac minis ($599)

[Thanks to MacDailyNews Readers "Fred Mertz" and "Edward W." for the heads up.]

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Apr 24, 09 - 01:26 pm Comment from: zmarc

That's a lot of virus-free Macs!

Apr 24, 09 - 01:27 pm Comment from: Virus Free (on WindblowsChunks)

Yep, fixed this ex-conficker machine right up.

Got to install a new hard drive and extra memory too.

Thank you Microsoft for putting out such cr*p software.

In this tough economy I'll fix Windows, but my Mac keeps on chugging along without a care.

Apr 24, 09 - 01:30 pm Comment from: Cubert

Ironically, that's the exact same amount that Ballmer paid for cheeseburgers last year.

Apr 24, 09 - 01:39 pm Comment from: Olmecmystic

You need a biohazard suit to even touch a PC. It's a damn shame.

GET A MAC!

Peace.
Olmecmystic cool smile

P.S. Where does MDN keep finding these classic photos of Ballmer? Always situationally appropriate. Hilarious!

Apr 24, 09 - 01:42 pm Comment from: ken1w

"The Microsoft Tax"

Good one, MDN.

Apr 24, 09 - 01:48 pm Comment from: Virus Free

Oh yea, had to install a battery on this POS PC.

That's another $20 added to the bill!!!

Working towards my new 17" matte screen MacBook Pro!

Keep up the good work Microsloth!!

Apr 24, 09 - 02:12 pm Comment from: Grego

Can we get an airplane with a banner, stating today's headline of course, to fly over redmond all day?

Apr 24, 09 - 02:14 pm Comment from: TomL

But a PC is cheaper to buy. Just use the savings (and a whole lot more) to pay for malware along with some usable software.

Apr 24, 09 - 02:15 pm Comment from: MacGuy

More likely Micro$hit has cost the world more than 5000 Trillion Dollar is lost productivity over the last decades.

Totally avoidable, but the stupidity of mankind knows no bounds.

Apr 24, 09 - 02:46 pm Comment from: bizlaw

Think of how many jobs that amount of money could have saved during this recession.

Oh, right, they saved IT jobs because someone has to clean up the PCs.

But wait, they didn't – the companies just made their already pared-down IT staff work overtime (probably without pay) to clean up something which shouldn't have happened in the first place.

Apr 24, 09 - 02:48 pm Comment from: Algernon Blue

Is an IT "professional" guilty of malpractice if s/he knowingly ignores this data?

Apr 24, 09 - 02:56 pm Comment from: Bodie

I always figured the Microsoft Tax was all the money you had to spend "after the sale" to keep your machine tuned up and running. Does this get talked about?

I'm a new member here, but I haven't seen it talked about here or other sites before.

Just wondering.

Apr 24, 09 - 02:59 pm Comment from: Jubei

MDN Best so far. I can use this data to send to anyone considering a Windows PC VS a Mac. Excellent information.

@Cubert grin

Apr 24, 09 - 03:26 pm Comment from: Me In LA

I'm so picky - that's why I bought an infected PC!
I mean, the Mac is sexy, but I want a real computer.
You know, one MS pays for?

HAHAHAHAHA

Apr 24, 09 - 03:30 pm Comment from: Saldin

Point does get across, but the Mac Pro numbers show both models (4-core and 8-core) at the same $2499 price.

Apr 24, 09 - 03:32 pm Comment from: Saldin

Whoa! Fixed it very fast.

Thanks!

Apr 24, 09 - 03:37 pm Comment from: Urlow

Where'd the money go? In other words, what real world damage has this 'virus' caused? If something installs on my machine without me knowing, sure it's a virus, but if it just sits there doing nothing, no harm, no lost productivity, etc. NOT condoning it, but where do they come up with this figure?

Apr 24, 09 - 03:51 pm Comment from: Urlow

@mac guy

Maybe THATS why our country is in so much debt!

If MS got it right from the start, think of all the money that would be saved...

seriously, it's probably not too far from being equal (nation debt = money spent on removing viruses the past 20+ yrs)

Apr 24, 09 - 03:55 pm Comment from: Predrag

The virus actually DID damage. It was used to create a botnet of zombie PCs. These botnets are rented in the cyber-underworld, and the renter uses them to orchestrate a distributed denial-of-service attack, followed by a ransom note. Many medium-sized online businesses have paid ransom to avoid being completely shut down by these DDoS attacks.

Most of the cost related to the conficker was in fact lost productivity due to having to shut down the infected PCs and have IT engineers spend their billable hours cleaning up the computers and deleting the virus. Figure out the number of infections, the average time it takes to identify that the PC is infected, then clean it up, then the average time an IT person spends doing this, than the average cost of time lost by the person who can't do their work due to the PC being down for service, add these numbers and you get a reasonably accurate estimate of the total damage, i.e. "the Microsoft Tax".

That's how they come up with the figure.

Apr 24, 09 - 03:57 pm Comment from: Predrag

Forgot to include the average losses to the company as a consequence of these PCs not working (not just for paying staff who can't do anything). Probably some other incidental and consequential losses... No wonder it's billions...

Apr 24, 09 - 04:41 pm Comment from: Big Al

Is Microsoft really at fault if they patched the conficker hole last fall and the idiots that got the virus were not keeping their computer patched?

There are some high powered IT weenies with egg on their faces for infecting computers they were responsible for by not installing Microsoft's patches.

Computer owners and IT weenies are responsible for the conflicker infestation, not Microsoft.

Apr 24, 09 - 05:04 pm Comment from: Roger Knights

The Windows Tax: A dolor a day.

Apr 24, 09 - 05:34 pm Comment from: Passerby

Lauren can't possibly use that many Mac Pros. Could I have one? Please?

Apr 24, 09 - 05:45 pm Comment from: freebeer

Ah, little does MDN know this is all part of a grand plan. PCs are cheap and getting cheaper. Along with the popularity of netbooks and cloud computing, soon a PC would just be like a disposable set of contacts, use it and when you discover something wrong, toss it and get another one. Like reading the paper on the transit. Put it in the recycle bin on your way out of the train station. One way to increase consumerism to pump the economy.

Apr 24, 09 - 05:50 pm Comment from: MacRaven

I hope Lauren got it, and the other cheap PC buyers in the commercials. LMAO.

Apr 24, 09 - 06:10 pm Comment from: @Big Al

So Microsoft is blameless for making an operating system that's about as secure as a paper bag?

No, I think the conficker infestation really might be their fault. If MS weren't so miserably incompetent at designing software, then nobody would have to patch their version of Windows to be safe from conficker, instead Windows would be safe from self-propagating worms like conficker to begin with.

Apr 24, 09 - 06:26 pm Comment from: mike

Can we dress Ballmer up in blue jeans and a white polo shirt ala Homer Simpson for the official "D'oh!" announcement from MS?

Apr 24, 09 - 08:15 pm Comment from: silverhawk

Is there something in the M$ EULA that prevents corporations or governments form suing over virus infestations?

Apr 25, 09 - 09:30 pm Comment from: Ting

As they say in sales, dollarise the advantage of your offering to the punter.

So, how much is $9bn divided by the number of installed peecees in the world?

Anyone?

Apr 26, 09 - 02:37 am Comment from: Andrew

Yeah damn you Microsoft!
Stop having 90% of the OS market share
and Stop giving freedoms to consumers across multiple platforms!
Gosh its almost like you're trying to give them choices.
More users = higher risk for viruses.
Hackers aren't stupid, why hack a Mac when hacking a PC allows you access to millions of computers.
Vista isn't that bad, I have 4 GB Ram on a 64 bit laptop for $900.
Never had a problem with it. And I don't have anti-virus software.
Enjoy Photoshop on your 64 bit Mac..
I guess a flame war will erupt now, sorry.

Apr 27, 09 - 07:59 am Comment from: NCIceman

Bah, that's got to be a bloated figure...still cheaper to convert to macs though...

May 01, 09 - 05:34 am Comment from: Zeehan

I feel delighted to read such a good post, I would like to thank the Author for this marvelous efforts.this post is good in regards of both knowledge as well as information. Thanks for the post.
stock trade

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